India's Strides Pharma to spin off contract development unit (updated)

Strides Pharma Science

25/09/2023 11:58

(Adds details)
       BENGALURU, Sept 25 (Reuters) - India's Strides Pharma
Science  SRID.NS  on Monday said it would spin off its contract
development and manufacturing organisation (CDMO) and soft
gelatin business into a new entity which would list in the next
12-16 months.
        The new company, known as "OneSource", will have more
than 1,200 employees and is expected to deliver revenue worth
between $180 million - $200 million in fiscal 2025.
  
        It is also targeting earnings before interest, taxes,
depreciation and amortisation, or EBITDA margin of nearly 30%,
which is expected to improve to over 35% from FY26 onwards. 
  
    Shareholders of Strides would hold 44% value in OneSource
and will receive one share of OneSource for every two shares
held in Strides, valuing the shares of Strides at 364 rupees
apiece. 


 (Reporting by Kashish Tandon in Bengaluru; Editing by Dhanya
Ann Thoppil and Nivedita Bhattacharjee)
 ((Kashish.Tandon@thomsonreuters.com;))