Stelis Biopharma announces closure of its transaction with Syngene International Ltd

Stelis Biopharma & Syngene have executed the final agreements to transfer its Unit 3 multi-modal facility in Bengaluru to Syngene with the following modifications:

- Gross consideration adjusted from INR 7,020 Million to INR 6,170 Million - a reduction of INR 850 Million. This is on account of amongst other things Stelis retaining 10 single use of 2KL (20,000 litres) reactors not currently installed in the facility.

This will support our increased focus for Mammalian Drug Substance opportunities in the CDMO space. With its current installed capacity of 8,000 litres, the near term expanded capacity at 28,000 litres will make Stelis a significant player in the space.

Stelis has received today (1 December, 2023) a payment of INR 3,950 Million and the balance amount shall be received on completion of certain post-closing actions and final adjustments, if any which is expected in December 2023.

The proceeds received today along with cash and cash equivalents has been deployed to repay Stelis' lenders to the extent of INR 4,200 Million.

The above payment has also resulted in the release/ reduction of corporate guarantees issued by Strides on behalf of Stelis by circa INR 8,000 Million.

Shares of Strides Pharma Science Limited was last trading in BSE at Rs. 502.65 as compared to the previous close of Rs. 486.60. The total number of shares traded during the day was 19254 in over 1144 trades.

The stock hit an intraday high of Rs. 505.10 and intraday low of 488.05. The net turnover during the day was Rs. 9632474.00.

Source : Equity Bulls

Keywords

StridesPharmaScience INE939A01011 StelisBiopharma Syngene FinalAgreements