Business

Zydus Lifesciences to Acquire 50% Stake in Sterling Biotech for ?550 Crore

• By Newsdesk
• New Delhi
• Aug 25, 2024

Business

Zydus Lifesciences Limited has entered into an agreement with Perfect Day Inc., a Temasek portfolio company, to acquire a 50% stake in Sterling Biotech Limited for ₹550 crore.

Sterling Biotech, a prominent producer of pharmaceutical gelatin, DiCalcium Phosphate, and various active pharmaceutical ingredients (APIs), operates two manufacturing facilities in Gujarat. Upon completion of the transaction, Sterling Biotech will be structured as a 50:50 joint venture, with equal board representation from both parties.

NovaaOne Capital Private Limited is serving as the exclusive financial advisor to Perfect Day for this transaction.

According to a regulatory filing by Zydus, the joint venture will establish a cutting-edge manufacturing facility dedicated to producing fermented animal-free protein for global markets. This initiative aims to accelerate the production of high-quality, eco-friendly protein products, meeting the increasing consumer demand for fermentation-based and ethically sourced nutrition while reducing environmental impact.

This acquisition marks Zydus’ entry into the specialized biotech sector, focusing on health and nutrition products, particularly targeting consumers who prefer animal-free protein or are lactose intolerant. Perfect Day’s precision-fermented protein is already utilized in various products, including ice creams, cream cheese, sports nutrition items, and baked goods, offering significant functional benefits and a reduced environmental footprint.

The joint venture will also strategically evaluate the API and gelatin business in alignment with its vision of focusing on animal-free protein products, Zydus added.

Sharvil Patel, Managing Director of Zydus Lifesciences, expressed enthusiasm for the partnership, stating, "We are committed to fostering growth through strategic partnerships and continuously seek new collaborations to position India as a leading global supply chain hub. We are thrilled to collaborate with Perfect Day, combining our strengths and expertise to create value for consumers."

Sterling Biotech reported a turnover of ₹454.9 crore in the fiscal year 2023-24.

The acquisition is expected to be finalized within 60 working days from the signing of the share purchase agreement.