The Board of pharmaceutical company Strides Pharma on Wednesday considered and approved the scheme of amalgamation for merger of Vivimed Life Sciences Private Limited (VLSPL), a wholly-owned subsidiary, with the company.

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The scheme is now subject to receipt of approval from National Company Law Tribunal's (NCLT) Mumbai Bench and from shareholders and creditors of each of the companies, the Bengaluru-headquartered company said in a regulatory filing.

"Board of Directors of Strides Pharma Science Limited (the 'Company') at their meeting held on August 02, 2023, have considered and approved the scheme of amalgamation ('Scheme') for merger of Vivimed Life Sciences Private Limited ('VLSPL'), a wholly-owned subsidiary, with the company, pursuant to Sections 230 to 232 of the Companies Act, 2013," the company said.

Strides Pharma pointed out that the Scheme was originally approved by the Board at their meeting held back in February 2022, and an announcement was made to the stock exchanges on the same day. However, the company did not proceed with the scheme at that time and the current scheme supersedes the original scheme.

Strides Pharma Q1 earnings

Strides Pharma also released its June quarter results today. The pharma company reported a narrower net loss of Rs 7.1 crore, compared to a loss of Rs 136 crore that it reported during the same period last year. Strides reported an exceptional loss of Rs 6 crore in the Pharmaceutical business, while the base quarter had an exceptional loss of Rs 66 crore.

The company's revenue came in at Rs 930 crore, down 1.1 percent as against the same quarter a year ago.

However, operating performance for Strides Pharma remained strong, with EBITDA expanding to Rs 166.5 crore from Rs 60 crore last year, while margin expanded by nearly 1,200 basis points to 18 percent from 6.4 percent year-on-year. Operating profit for Q1 was the highest ever for the firm.

Strides Pharma said that the company is on track to achieve the targets it set out at the start of financial year 2024. Founder, Managing Director and Executive Chairperson Arun Kumar said that the company will sustain the momentum in performance driven by the continuous improvement in the quality of business and deliver strong cash generation going forward.

Shares of Strides Pharma Science were trading 5 percent lower after the Q1 earnings announcement. The stock fell 3 percent in a month, while it rallied 27 percent on a year-to-date basis.

First Published:Aug 2, 2023 1:37 PM IST