Strides Arcolab Ltd, one of the leading global manufacturers of pharmaceuticals, has announced that its loss making manufacturing operation for OTC and nutraceuticals for soft gelatine products in the US (conducted through its subsidiary, Strides Inc.) has been shut down.
The changing regulatory framework in the USA for OTC and nutraceutical products does not make the plant viable anymore. The facility incurred an operating loss of approx. Rs 280 mio (US $7.10 mio) in the financial year 2007.
The company continues to engage with interested parties on the disposal of the asset but the ceasing of the manufacturing operations will ensure the immediate reduction of losses in its operations in the USA.
The soft gelatin business continues to be attractive for Strides and its Indian Plant is fully geared to meet enhanced demand that will be relocated to India.
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