Strides Pharma Science has signed a binding agreement with Rxilient Biohub to sell its Singapore manufacturing facility for $15m.

Proceeds from the transaction will be utilized for debt reduction.

Strides plans to reduce annual costs by Rs 75 crore through this sale, primarily focusing on reducing operating expenses and depreciation and operating lease expenses, Economic Times reported.

Strides said the Transaction would be EPS (earnings per share) accretive with no impact on revenues

Last year, the Singapore manufacturing site was shut down as part of the FY23 reset strategy's manufacturing network optimization and cost reduction programs.

Strides emphasized the integration of the US, transferring products for government procurement to the Chestnut Ridge manufacturing site.

"This transaction is the culmination of the manufacturing network optimization efforts as we continue to focus on driving profitability and operational efficiency."

The transaction is expected to close in Q3FY24 on receipt of necessary approvals.