Onesource Specialty Pharma Limited, a leading contract development and manufacturing organization (CDMO), has announced two significant developments: a potential acquisition to expand its sterile injectable capabilities and its Q1 financial results.

Potential Acquisition of Sterile Injectable Businesses

The Board of Directors of OneSource Specialty Pharma has given in-principle approval to evaluate the potential acquisition of sterile injectable CDMO and CMO businesses from Steriscience Pte. Limited and Brooks Steriscience Limited. This strategic move could significantly enhance OneSource's manufacturing capabilities and global presence.

Key aspects of the potential acquisition include:

• A USFDA-approved sterile fill-finish manufacturing facility in Warsaw, Poland, with expansion capabilities for drug-device combination products.
• An integrated USFDA-approved carbapenem facility in Vadodara, India.
• Both Steriscience SG and Brooks Steriscience Limited are majority-owned by OneSource's promoters.

The company has authorized management to conduct a detailed evaluation of the transaction and appoint necessary consultants, advisors, valuers, and merchant bankers. This move aligns with OneSource's strategy to strengthen its position in the specialty injectable market.

Q1 Financial Performance

OneSource Specialty Pharma also reported its financial results for the first quarter. The company demonstrated year-over-year growth across key financial metrics:

Highlights of the Q1 performance include:

• Revenue growth of 12.00% year-over-year, reaching ₹3,273.00 million.
• EBITDA increased by 37.00% to ₹885.00 million, with margin expansion of approximately 500 basis points.
• The company turned profitable with an adjusted PAT of ₹371.00 million, compared to a loss in the same quarter last year.

Neeraj Sharma, CEO & MD of OneSource Specialty Pharma, commented on the performance: "Our Q1 performance has been in line with our expectations. During the quarter, we secured 6 new contracts and received 25 RFPs across all our offerings. In preparation for forthcoming DDC commercial launches, we have undertaken major capacity expansion work in our flagship site."

The company also highlighted its focus on quality and compliance, with its flagship site successfully clearing back-to-back inspections from USFDA and ANVISA Brazil, paving the way for commercialization.

OneSource Specialty Pharma continues to strengthen its position in the CDMO market, with a focus on complex pharmaceutical products including biologics, drug-device combinations, sterile injectables, and oral technologies. The potential acquisition and strong Q1 results indicate the company's commitment to growth and expansion in the specialty pharmaceutical sector.

Onesource Specialty Pharma , formerly known as Stelis Biopharma Limited, has reported its financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company, which operates primarily in the Contract Development and Manufacturing Organization (CDMO) segment for pharmaceutical products, faced challenges but also announced potential strategic moves.

Financial Performance

Onesource Specialty Pharma reported a consolidated net loss of Rs 1.86 million for Q1 FY26, a significant improvement from the loss of Rs 55.47 million in the same quarter last year. The company's revenue from operations increased to Rs 3,272.70 million, up from Rs 2,922.89 million year-over-year, indicating growth in its core business activities.

On a standalone basis, the company posted a profit of Rs 248.15 million, a substantial turnaround from a loss of Rs 239.66 million in the previous year's quarter. This improvement in standalone performance suggests stronger operational efficiency within the parent company.

Exceptional Items and Operational Challenges

The company faced exceptional items worth Rs 28.70 million related to legal charges from subsidiary litigation regarding Sputnik vaccine matters. These charges impacted the overall financial results for the quarter.

Strategic Initiatives

In a significant development, Onesource Specialty Pharma's Board of Directors has given in-principle approval to evaluate potential acquisitions that could expand the company's capabilities and global reach:

1. A USFDA-approved sterile fill-finish manufacturing facility in Warsaw, Poland, with expansion potential for drug-device combination products.
2. An integrated, state-of-the-art, USFDA-approved carbapenem facility in Vadodara, India, operated under Brooks Steriscience Limited.

These potential acquisitions, if finalized, could strengthen the company's position in the sterile injectables and carbapenem markets, serving global pharmaceutical players and enhancing its product portfolio.

Corporate Actions

The company also reported the allotment of 59,195 equity shares under its Employee Stock Option Plan 2021, increasing its paid-up share capital to Rs 11,45,25,216.

Outlook

While Onesource Specialty Pharma faces ongoing challenges, including legal issues related to past vaccine projects, the company's improved revenue and strategic acquisition plans indicate a focus on growth and expansion in the CDMO space. The potential acquisitions, particularly of USFDA-approved facilities, could significantly enhance the company's capabilities and market position in the pharmaceutical manufacturing sector.

Investors and stakeholders will be watching closely as the company navigates these opportunities and challenges in the coming quarters.