Strides Pharma Science Limited announced that its subsidiary, Strides Pharma Global Pte Ltd in Singapore, has entered into a binding agreement with Rxilient Biohub Pte Ltd for the sale of a manufacturing facility, which includes licenses, equipment, vendor contracts and more in exchange for a total cash consideration of $15 million.

Additionally, as part of the transaction, Rxilient Biohub will assume the long-term lease obligation associated with the manufacturing site from Strides.

Rxilient Biohub, incorporated in Singapore, is mainly engaged in the manufacture of pharmaceutical products and preparations for human use and the manufacture of vaccines for human use.

Strides Pharma stated that this transaction represents the successful conclusion of its ongoing efforts to optimise its manufacturing network, with a continued emphasis on enhancing profitability and operational efficiency.

The sale is expected to contribute to an annual cost reduction of approximately $9 million (approximately Rs 75 crore), including a reduction of about $2 million (approximately Rs 18 crore) in operating expenses, leading to enhanced EBITDA, it said. Additionally, it said, the deal will result in a decrease of about $7 million (approximately Rs 57 crore) in depreciation and operating lease expenses, making it immediately beneficial to earnings per share (EPS), amounting to an annualised gain of about Rs 7 per share.