Strides Pharma Science Ltd.’s shares surged to a nearly nine-year high on Friday, following the company’s decision to cease operations of its US subsidiary, Altima Innovations Inc. The stock rose 4.71% to Rs 1,284.00, its highest level since December 18, 2015.
The company dissolved Altima Innovations Inc., a step-down wholly-owned subsidiary, as part of its optimization exercises. The subsidiary contributed Rs 5.52 lakh in net worth as of the last fiscal year 2024.
Separately, Strides Pharma announced that the National Company Law Tribunal approved its merger with Indian subsidiary Strides Alathur Pvt. The merger will come into effect after both companies submit a certificate copy of the NCLT order to the Registrar of Companies.
The stock has gained 200.38% in the last 12 months and 97.28% on a year-to-date basis. Total traded volume stood at 2.1 times its 30-day average, with a relative strength index of 82.21, indicating the stock is overbought. Two analysts tracking the company maintain a ‘buy’ rating, with an average 12-month consensus price target implying a downside of 3.9%.
