Zydus Lifesciences To Acquire Sterling Biotech's Active Pharmaceutical Ingredients Business

Zydus Lifesciences is one of the biggest names in the pharma business of the country. In a recent development, the company has announced of a crucial acquisition deal. The company announced the 50 per cent acquisition of Mumbai-based Sterling Biotech Ltd. Zydus will be taking over Sterling Biotech's API or Active Pharmaceutical Ingredients Business.

Zydus Makes Crucial Acquisition

Zydus Lifesciences conveyed this information through in exchange filing with the BSE. In the exchange filing, filed on September 17, the company said, " Zydus Lifesciences Limited (“the Company”) intimated that the Company through its wholly owned subsidiary has acquired 50% stake of Sterling Biotech Limited (“SBL”). Active Pharmaceutical Ingredients (“API”) business of SBL is an excellent strategic fit for the Company given that it has fermentation-based products portfolio with a manufacturing facility at Masar (near Vadodara, Gujarat which is in proximity to the Company’s existing facility at Dabhasa) and can meet our strategic and commercial objectives."

The statement further added, "The Board of Directors of the Company at their meeting held today i.e. September 17, 2024 have approved a Business Transfer Agreement (“BTA”) to purchase the API business (“the Target Business”) of SBL, on a going concern basis, on slump sale basis, without values being assigned to individual assets and liabilities, on cash-free and debt-free basis at a pre-defined lump-sum consideration of Rs. 840 mio. (Rupees Eight Hundred Forty Million only), subject to certain conditions precedent and closing date adjustments as provided in the BTA, with effect from such date, and in such manner and on the terms and conditions as mentioned in the BTA. "

Aim On API Products

Furthermore, the TBL, as per the exchange filing, is involved in manufacturing fermentation-based API products like Lovastatin, Daunorubicin, Doxorubicin and Epirubicin.

The API facility is situated in Vadodara, Gujarat.

The target turnover of Sterling Biotech Ltd stands at Rs 668.3 million. Zydus Lifesciences has a market capitalisation of Rs 1,12,261 crore.

In addition, the acquisition of the SBL is expected to be completed by December 31, 2024.