Strides Arcolab announced that it has entered into an agreement with GMS Holdings whereby GMS will invest USD 29.10 million for a 25.1% stake in Stelis Biopharma, the biotech arm of Strides, to fund its greenfield project.
The transaction is expected to close in Q4 of 2014 and is subject to customary closing conditions, regulatory and corporate approvals, as may be required.
Joe Thomas, chief corporate development officer of Strides and head, Biotech division stated, ''We are extremely pleased to have GMS Holding as our strategic partner for the emerging Biotech business. GMS Holdings has a track record of having partner in successful businesses, with a strong presence in the MENA region. This partnership will accelerate our emerging market strategy for the biotech business.''
Shares of the company gained Rs 67.3, or 10.47%, to trade at Rs 710.10. The total volume of shares traded was 361,420 at the BSE (3.16 p.m., Monday).