Strides shuts New Jersey facility

Plans to relocate soft gelatin biz to India

Strides Arcolab, Bangalore-based exporter of branded generic pharmaceutical products, has closed its manufacturing unit at New Jersey in the United States.

The company in a release, said the manufacturing operation of over the counter (OTC) and nutraceuticals for soft gelatin products in the US (conducted through its subsidiary, Strides Inc) has been shut down.

Strides Arcolab has said the changing regulatory framework in the US for manufacturing of OTC and nutraceutical products does not make the plant viable anymore. The facility incurred an operating loss of about Rs 28 crore ($7.10 million) in FY07.

The soft gelatin business continues to be attractive for Strides and its Indian plant is geared to meet the enhanced demand that is being relocated to India.

The company has continued its engagement 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.