New Delhi: On Friday, Strides Pharma Science (Strides) announced that it has reached a binding agreement with Rxilient Biohub to sell its manufacturing facility in Singapore for $15 million.
The proceeds from the transaction will be used to reduce debt.
This sale will also enable Strides to cut annual costs by Rs 75 crore. This cost reduction will include a decrease of Rs 18 crore in operating expenses and Rs 57 crore in depreciation and operating lease expenses.
According to Strides, the transaction will lead to an increase in earnings per share (EPS) without affecting revenues.
Last year, the Singapore manufacturing site was closed down as part of the company’s manufacturing network optimization and cost reduction programs implemented in the FY23 reset strategy.
“This transaction represents the successful culmination of our efforts to optimize our manufacturing network and focus on driving profitability and operational efficiency,” the company stated in a press release.
The transaction is expected to close in Q3FY24 upon receiving the necessary approvals.