Strides Pharma Science, an Indian drugmaker, revealed plans to spin off its CDMO and soft gelatin businesses into a single entity that will be known as OneSource.
The new company, which will have more than 1,200 employees globally, is expected to debut within the next 16 months and will be listed on the BSE and the National Stock Exchange of India, the company said in a filing (PDF) issued Monday.
The goal of the spinoff is to establish a specialty pharmaceutical CDMO company that offers services for biologics, oral softgels, complex injectables, sterile injectables and other complex drug delivery systems.
OneSource, which will become "India’s first specialty pharma pure play CDMO," should generate between $180 million and $200 million in fiscal year 2025, according to Strides.
“Consolidation will allow the management to devise, implement and pursue independent business strategies for the contract development and manufacturing business which will enable a wider scope for independent collaboration, investment opportunities and expansion,” the company said in the filing.
Under the deal, Strides shareholders would hold 44% of the value in OneSource and receive one share of OneSource for every two shares of Strides they hold.
In 2021, Strides said it would pump $42 million into upgrades at a former Endo manufacturing facility in Chestnut Ridge, New York. However, in November 2022, the company let go of 88 employees at the plant as part of a business restructuring.