Zydus Lifesciences has received approval from Board of Directors for Business Transfer Agreement (BTA) to purchase the Active Pharmaceutical Ingredients (API) business of Sterling Biotech (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 84.00 crore, 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.
The Target Business of SBL consists of a portfolio of fermentation-based API products like Lovastatin, Daunorubicin, Doxorubicin and Epirubicin.
The Company is looking for fermentation-based API business with manufacturing facility given the high entry barriers and attractive margin profile of such business. The Company has a dedicated fermentation lab that is focusing on the development of new products. Building a new plant through the greenfield route could be more expensive and time taking.
With the said acquisition of the Target Business of SBL, the Company will be in a position to meet its strategic and commercial objectives. The Board of Directors of the Company at their meeting held on September 17, 2024 have approved the same.
Zydus Lifesciences (formerly known as Cadila Healthcare) is an India-based pharmaceutical company.
| Company Name | CMP |
|---|---|
| Sun Pharma Inds. | 1675.20 |
| Dr. Reddys Lab | 1235.40 |
| Cipla | 1238.30 |
| Zydus Lifesciences | 942.55 |
| Lupin | 2324.25 |
| View more.. | |
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