Bengaluru-headquartered Strides Pharma Science Ltd 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. Strides noted that Strides Pharma shareholders will receive one share of ‘OneSource’ for every two shares of Strides at a swap ratio of 1:2. The implied value of OneSource for Strides shareholders is Rs 364 per share. Strides’ shareholders will own 44% of the economics of OneSource.
OneSource is created by merging Strides’ soft-gel business and SteriScience CDMO injectables business into current Stelis. Strides Pharma stock reacted positively to the development—raced to a 52-week high of Rs 549 before closing at Rs 535.65, up by 7.42 per cent, on the BSE.
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.
“The new platform will be able to offer development and manufacturing services covering platform technologies, specialty injectables, complex generics, biosimilars and biologics,” it added. Strides noted in an investor presentation that they expect OneSource business in FY25 to achieve sales between $180 million and $200 million with around a 30 per cent Ebitda margin based on a strong order book. OneSource has the potential to double its scale in 3-4 years mainly from the momentum from biologics and high-end drug-device combinations in GLP-1 products, it added.
Pursuant to the demerger, Stelis will issue equity shares to the shareholders of Strides and SteriScience on the recommended share entitlement ratio determined by an independent valuer. After the approval of the scheme, Stelis (OneSource) will be listed on NSE and BSE.
