Strides Pharma shares fall over 3% on plans to spin off CDMO, gelatin businesses
Strides Pharma Science fell over 3% to Rs 518 in Tuesday's trade on BSE after the company announced plans to spin off its CDMO (Contract Development and Manufacturing Organisation) and soft gelatin businesses into a new entity, OneSource.
The company intends to «build a one-of-a-kind specialty pharmaceutical contract development and manufacturing powerhouse with capabilities in biologics, oral soft gels, complex injectables, sterile injectables, and other complex drug delivery systems», according to an exchange filing.
Strides Pharma shareholders will get one share of OneSource with a face value of Re 1 apiece for every two shares of face value Rs 10 each held in Strides Pharma. There is no cash consideration involved.
The implied value of proposed shares issued by OneSource to Strides shareholders is Rs 364 per share.
This business combination is expected to result in the new entity being one of the top five Indian CDMO players, the company said.
The demerger is expected to be completed by April 1, 2024, and is subject to necessary regulatory approvals.
Strides Pharma intends to list Stelis Biopharma on both exchanges—BSE and NSE—within the next 12 to 15 months.
OneSource will be India’s first specialty pharma pure play CDMO, which would include Biologics and high-end drug combinations, oral technologies, and sterile injectables.
On a year-to-date basis, the stock has surged over 50%, while it has delivered over 95% in the past six months.
As per Trendlyne data, the average target price of Strides Pharma is Rs 530, which shows a downside of 2% from the current market prices. The consensus recommendation from 3 analysts for the stock is a 'Buy'.
In terms of technicals, the relative strength index (RSI) of the stock
