Zydus Lifesciences to acquire 50% stake in Sterling Biotech
Zydus Lifesciences has announced its intention to acquire a 50% stake in Sterling Biotech. The deal, facilitated through a pact with Perfect Day Inc., will see the latter selling its shareholding in Sterling Biotech for an undisclosed sum. Following this transaction, Sterling Biotech will transform into a joint venture (JV) with equal representation from both parties on the board.
Zydus Lifesciences's subsidiary and NovaaOne Capital's role
The acquisition was carried out through a wholly-owned subsidiary of Zydus Lifesciences. NovaaOne Capital Private Limited acted as the exclusive financial advisor to Perfect Day for this transaction. However, the financial specifics of the deal have not been disclosed. The newly formed JV plans to set up a manufacturing facility for producing fermented animal-free protein aimed at global markets.
Acquisition marks Zydus's entry into specialized biotech products
This acquisition signifies Zydus's entry into the specialized biotech products sector for health and nutrition. The company aims to cater to consumers who prefer animal-free protein or are lactose intolerant. Perfect Day's precision-fermented protein is used in various products like ice creams, cream cheese, sports nutrition items, and baked goods due to its high functionality benefits and lower environmental impact.
Sterling Biotech's current operations and future plans
Sterling Biotech is currently involved in the production and sale of fermentation-based API products and gelatine. The acquisition aligns with Zydus Lifesciences's strategy of promoting growth through partnerships. Sharvil Patel, MD of Zydus Lifesciences, stated that the firm is exploring new collaborations to position India as a top global supply chain hub.
Perfect Day's interim CEO comments on partnership
Narayan TM, the interim CEO of Perfect Day, expressed that this partnership will significantly enhance the company's capabilities to meet the demands of the rapidly expanding global market. The deal highlights the increasing importance of environmentally friendly and sustainable products internationally. It also indicates Perfect Day's intention to strengthen its technological capabilities in India as part of its emerging market growth strategy.
