Strides to Create Specialty Pharma Division '˜OneSource' to Generate $200 Mn Revenue in FY25

The new specialty pharma aims to become a leading CDMO powerhouse, offering services in biologics, oral soft gels, complex injectables, and sterile injectables. Further with OneSource, the company seeks to generate revenue worth between $180 million - $200 million in fiscal 2025.

Bengaluru-based Stride Pharma has approved a scheme of arrangement to create OneSource, an independent speciality pharma contract development and manufacturing organisation (CDMO).

Under the scheme, the CDMO business of Strides (oral technology), Steriscience (sterile injectables) and Stelis (biologics and high-end drug devices) will merge to form OneSource. However, the proposed demerger is expected to be completed by April 1, 2024.

The new specialty pharma aims to become a leading CDMO powerhouse, offering services in biologics, oral soft gels, complex injectables, and sterile injectables. Further with OneSource, the company seeks to generate revenue worth between $180 million - $200 million in fiscal 2025.

However, the scheme still awaits necessary approvals from the SEBI, the shareholders and creditors of the company, along with the National Company Law Tribunal.

Following the approval, Stelis will be listed on NSE and BSE within the next 12-15 months. Moreover, a swap ratio of 1:2 has been finalised with Strides Pharma shareholders receiving one share of OneSource for every two shares of Strides Pharma. The implied value of  OneSource for Strides shareholders is INR 364/share. Strides Shareholders will own 44% of the economics of OneSource.

Reportedly, on the transfer of three businesses, OneSource will have a revenue of around INR 7,550 Cr, encompassing INR 2,435 Cr of soft gel business of Strides Pharma, INR 2,196 Cr of Steriscience, INR 2,921 Cr of Stelis.

Founded in 1990, Strides Pharma is among the world's largest manufacturers of soft gelatin capsules. The company focuses on the development and manufacture of IP-led niche finished dosage formulations. It further aims to provide high-quality laboratory, research, and advisory services while creating opportunities for its employees and generating sustainable shareholder value. 

In another similar development, the government of India has officially released the National Policy on Research and Development in Pharmaceuticals and Medical Devices technology. This initiative is centred around streamlining regulatory processes to facilitate rapid drug discovery, development and innovation in medical devices. 

In addition, the government approved the Scheme for the promotion of Research and Innovation in Pharma-MedTech (PRIP) with a total outlay of INR 5000 Cr for the upcoming five-year period from the financial year 2024 to the financial year 2028.