Strides Arcolab has said that it has sold its 94 per cent stake in Ascent Pharmahealth, a company subsidiary to U. S.-based Watson Pharmaceuticals.

Ascent Pharmahealth is one of the leading five generic pharmaceutical companies in Australia and also has a presence across Southeast Asia.

Watson Pharmaceuticals also acquired the remaining 6 per cent stake from Dennis Bastas, CEO of Ascent. The deal values Ascent at $392.5 million. Watson is aiming at restructuring and giving a new focus to Ascent.

Strides, which is a manufacturer of a number of IP-led niche pharma products with an emphasis on sterile injectables, runs 13 manufacturing facilities in five countries. The company employs 350 scientists at its R&D Centre in Bangalore.

""The sale of Ascent is a value-enhancing and forward looking initiative for Strides. We have been clear about our intention to focus on our highly attractive steriles segment, which we expect to be our growth engine going forward," said Arun Kumar, Executive Vice-Chairman and Group CEO of Strides Arcolab.

The funds raised by the sale of stake will make the company's balance sheet stronger and will lessen the debt. The shares of the company increased 9.4% to Rs 523 over indications that the reduction of foreign debt will enhance its financial position.