OneSource was created by merging Strides’ soft-gel business and SteriScience CDMO injectables business into the current Stelis
Bengaluru-headquartered Strides Pharma Science is spinning off its contract development and manufacturing (CDMO) business along with the soft-gelatin business into an entity called ‘OneSource’ (currently Stelis Biopharma) that will be eventually listed in the next 12-15 months to have better synergies and unlock value.
OneSource was created by merging Strides’ soft-gel business and SteriScience CDMO injectables business into the current Stelis.
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 per cent of the economics of OneSource.
“The new platform will be able to offer development and manufacturing services covering platform technologies, speciality 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.
The Strides board approved a scheme of arrangement amongst Strides Pharma Science, SteriScience Specialities and Stelis Biopharma, Strides Pharma said in a stock-exchange notification.
Strides will demerge its oral soft gelatin business and the identified CDMO business (including investments held by Strides in Stelis) into Stelis. Upon demerger, the shares of Stelis held by Strides will be cancelled, and the shareholders of Strides will become shareholders of Stelis.
