Strides to sell manufacturing facility in Singapore for Rs 125 crore

"Efforts were focused in integrating the US and the products that were supplied for US government procurement have been transferred to the Chestnut Ridge, US manufacturing site. This transaction is the culmination of the manufacturing network optimization efforts as we continue to focus on driving profitability and operational efficiency," Strides stated in a release.

"This sale will help further reduce annual costs by ~$9m (~ ₹750m), of which ~$2m (~₹180m) reduction in operating expenses ( EBITDA accretive) and ~$7m (~₹570m) in Depreciation and operating lease expenses, thereby being immediately accretive to EPS ( annualized ~ ₹ 7/share)," the Company stated.

The transaction is expected to close in Q3FY24 on receipt of necessary approvals and completion of customary & other closing conditions.

"Proceeds from the transaction will be utilized for debt reduction," it added.

Rxilient Biohub, incorporated in Singapore, is mainly engaged in manufacture of pharmaceutical products and preparations for human use and manufacture of vaccines for human use. Rxilient Biohub plans to start CDMO business in Singapore.

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