Zydus Lifesciences Limited has recently informed executives that its wholly-owned subsidiary has acquired a 50% stake in Sterling Biotech Limited (“SBL”). The Active Pharmaceutical Ingredients (“API”) business of SBL is a great strategic fit for the company because it can meet the company’s strategic and commercial goals and has a manufacturing facility in Masar, Gujarat, which is close to the company’s current facility in Dabhasa. It also has a portfolio of fermentation-based products. Therefore, the company had negotiated for the right to acquire the Target Business of SBL at a re-defined value while obtaining a 50% stake from the SBL shareholders
In the exchange filing, the company shared, “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.”
SBL’s target business includes fermentation-based API products such as lovastatin, daunorubicin, doxorubicin and epirubicin.
