Strides Arcolab up on revised FY10 guidance

Strides Arcolab moved up 5% to Rs 344 levels after the company revised the guidance for FY2010, post restructuring its oncology JV arrangement with Aspen Pharmacare.

Under the restructuring, Aspen Global Incorporated will sell its 50% ownership in the oncology JVs to Strides for a consideration of $117 million (around Rs 530 crore). Strides will license the existing and future oncology products to Pharmacare, an Aspen group company, for certain territories.

According to revised guidance, the group revenues are expected to increase by 35-37%, (Rs 1,775 crore –Rs 1,825 crore). The EBIDTA growth is pegged at over 70% with EBIDTA margins in the range of 20-21%. (The original guidance for EBIDTA margins envisaged in the range of 19-20%).

The stock opened at Rs 330 and touched high of Rs 350 during intra-day trades on the BSE. Around 361,000 equity shares have changed hands in the counter so far.