Strides Unveils 'OneSource' as Independent Specialty Pharma CDMO, Plans Listing in 12-15 Months

26 Sep 2023 , 10:00 AM

Strides Pharmaceuticals has introduced ‘OneSource,’ an independent Specialty Pharma Contract Development and Manufacturing Organization (CDMO), with plans to go public within the next 12 to 15 months. The newly established entity will focus on the manufacturing of products encompassing Biologicals, complex Injectibles, and Oral soft-gelatin capsules, positioning itself as one of the top 5 pure-play CDMOs in the country.

As part of the Proposed Scheme of Arrangement, with an appointed date of April 1, 2024, Strides Pharmaceuticals will demerge its Oral Soft Gelatin business and Identified CDMO business (including investments in Stelis) into Stelis. Following the demerger, Strides’ shares in Stelis will be nullified, and Strides’ shareholders will become shareholders of Stelis. SteriScience, a promoter group company, will also demerge its Identified Sterile Injectables CDMO business into Stelis. In line with the demerger, Stelis will issue equity shares to the shareholders of Strides and SteriScience based on the recommended Share Entitlement Ratio determined by an independent valuer.

Pending Scheme approval, Stelis is slated to be listed on the NSE and BSE within the next 12-15 months. The formation of OneSource results from the amalgamation of Strides’ Soft Gel business and SteriScience’s CDMO injectables business into the existing Stelis framework.

In this strategic move, a swap ratio of 1:2 has been finalized, meaning Strides Pharmaceuticals shareholders will receive one share of OneSource for every two shares of Strides Pharmaceuticals, with an implied value of INR 364 per share for OneSource. Consequently, Strides Shareholders will hold a 44% stake in the economics of OneSource.

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