Strides Pharma Science Ltd Share Price – NSE  / BSE

Pharmaceuticals, Small Cap

Strides Pharma Science has received a significant boost with the National Company Law Tribunal (NCLT) approving the scheme of arrangement for the creation of OneSource Specialty Pharma. This decision paves the way for India's first specialty pharma Contract Development and Manufacturing Organization (CDMO).

The creation of OneSource brings together the specialized businesses of Strides, Steriscience and the high-end biologics CDMO business from OneSource (formerly Stelis Biopharma). This integration, underpinned by a recently secured equity commitment of Rs 801 crore ($95 million) from a group of renowned investors, at a pre-money equity valuation of $1.65 billion, positions OneSource for robust growth, Strides Pharma Science said in a statement.

Following NCLT approval, OneSource is set to list its equity shares on the BSE and NSE, subject to regulatory clearances. Strides shareholders will receive one OneSource equity share for every two Strides shares held. The demerged undertakings from Strides and Steriscience will be vested with OneSource effective 1 April 2024. Effective date of de-merger shall becommunicated to the stock exchanges in due course.

This strategic move is expected to unlock value for Strides' stakeholders.

Strides Pharma Science is engaged in develops and manufactures a wide range of IP-led niche pharmaceutical products. It reported a consolidated net profit of Rs 93.23 crore in Q1 FY25 as against a net loss of Rs 131.34 crore posted in Q2 FY24. Revenue from operations stood at Rs 1201.1 crore in the quarter ended September 2024, registering a growth of 20.17% from Rs 999.43 crore posted in the quarter ended September 2023.

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Strides Pharma Global, Singapore (SPG), a wholly owned step-down subsidiary of Strides Pharma Science, is acquiring balance stake in Strides Pharma International AG (formerly Fairmed Healthcare AG) (Strides Switzerland), a step-down subsidiary of the Company for an aggregate consideration of ~CHF 1.01 million.

SPG currently owns 70% stake in Strides Switzerland. As part of business consolidation and to achieve operational synergy, SPG is acquiring the balance 30% stake in Strides Switzerland.

Strides Switzerland is strategically positioned to serve key markets in Europe. The acquisition marks a significant milestone in Strides' expansion efforts, further strengthening its position in the region.

The business is led by  Oren Weininger, who is the longstanding CEO of Strides Switzerland. Oren shall continue to lead the business in this region. His wealth of experience and expertise will drive company's continued success and growth in the European market.

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Net profit of Strides Pharma Science reported to Rs 93.23 crore in the quarter ended September 2024 as against net loss of Rs 131.34 crore during the previous quarter ended September 2023. Sales rose 20.18% to Rs 1201.11 crore in the quarter ended September 2024 as against Rs 999.43 crore during the previous quarter ended September 2023.

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Revenue from operations stood at Rs 1201.1 crore in the quarter ended September 2024, registering a growth of 20.17% from Rs 999.43 crore posted in the quarter ended September 2023.

Profit before exceptional items and tax was at Rs 131.54 crore in Q2 FY25, zoomed 161.61% from Rs 50.28 crore recorded in Q2 FY24.

The company reported an exceptional loss of Rs 3.87 crore during the quarter.

The firm reported quarterly EBITDA of Rs 235.80 crore in Q2 FY25, registering a growth of 30.92% year on year. EBITDA margin improved to 19.6% in Q2 FY25 as compared to 17.5% recorded in the corresponding quarter previous year.

Gross margin grew by 15.6% YoY to Rs 703.20 crore during the quarter. Gross margin reduced by 72bps YoY to 58.5% in the quarter ended September 2024.

US revenues at a historic high of $75m in Q2 FY25, grew 26.2% YoY. The company said that The US business poised to achieve the approximately $400million objective by FY27-28, reaffirming FY25 revenue outlook of $285million - $300million.

Arun Kumar, founder & executive chairperson, and Badree Komandur, MD & group CEO, “We continue to deliver on the momentum built over several preceding quarters and delivered another strong quarter. Q2FY25 demonstrated sustained growth across all markets fueled by new product launches. US operations reported highest ever quarterly revenue of $75m in Q2FY25. Strong Y-o-Y improvement in absolute EBITDA and EBITDA margin reflects our continued focus on operational efficiency and profitability.”

Strides Pharma Science is engaged in develops and manufactures a wide range of IP-led niche pharmaceutical products.

Shares of Strides Pharma Science shed 0.15% to currently trade at Rs 1551.30 on the BSE.

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