Strides Bags shareholder's Approval for OneSource Specialty CDMO unit

Strides Pharma Science announced that it has gained approval from both equity shareholders and secured creditors to establish OneSource, a specialized pharmaceutical Contract Development and Manufacturing Organization (CDMO).

In a statement to stock exchanges, the company announced that shareholders had approved the decision with a large majority. The company plans to next seek final approval from the NCLT, Mumbai Bench, and once granted, OneSource will seek listing approvals from the BSE and NSE.

Obtaining approval from shareholders and secured lenders is essential in the process of establishing OneSource as an independent CDMO specializing in advanced areas such as biologics, complex injectables, and oral technologies.

"We believe OneSource will unlock considerable value for Strides' stakeholders upon its listing," said Arun Kumar, executive chairperson and Badree Komandur, managing director and Group CEO. "We remain committed to delivering on this promise," they added.

The approval from shareholders for Strides' consolidation plan is in contrast to the resistance from at least two investment advisory firms. Proxy advisory firms IiAS and ISS advised investors to reject a proposal to merge certain businesses of renowned pharmaceutical firm and two group companies, citing the high valuation of one of the unlisted affiliates.

On the contrary, Stakeholders Empowerment Services (SES), another proxy advisory firm, initially advised against voting but ultimately shifted its recommendation to support.