Strides Pharma Science Limited announced the proposed de-merger of the Identified Business of its wholly-owned subsidiary, Arco Lab Private Limited. The boards of directors of both Strides and Arco Lab granted in-principle approval for this demerger during their meeting on 19 Mar 25.

The de-merger involves the transfer of Arco Lab's Life Sciences and Digital Innovation Capabilities, termed as 'Identified Business', into a New Company (NewCo). This NewCo will concentrate on Life Sciences and Manufacturing solutions, leveraging domain knowledge and technology capabilities.

Arco Lab will be responsible for incorporating the NewCo and undertaking necessary preparatory actions for the de-merger, including drafting a scheme of arrangement and business valuation. The NewCo is planned to be a wholly-owned subsidiary of Strides, and the company stated that the proposed restructuring is not expected to have any financial impact on Strides.

The board meeting of Strides related to this announcement commenced at 10:00 hrs IST and concluded at 11:30 hrs IST on 19 Mar 25.