Zydus Lifesciences board approves acquisition of API business of Sterling Biotech for Rs 84 crore

Zydus Lifesciences board approved for acquisition of API business of Sterling Biotech for Rs 84 crore.

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26 Aug, 2025 12:21

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Zydus Lifesciences shares faced under selling pressure on September 17 trading session after the board approval for acquisition of API business of Sterling Biotech for Rs 84 crore. The announcement comes days after the company announced buying a 50 percent stake in Sterling Biotech.

The board of directors of the company at their meeting held on September 17 "approved a Business Transfer Agreement (BTA) to purchase the API 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)", it said in a regulatory filing.

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 in Gujarat which is in proximity to the company’s existing facility at Dabhasa and can meet our strategic and commercial objectives, Zydus Lifesciences said in a statement.

Earlier, the company announced acquisition of 50 percent stake in Sterling Biotech Ltd. from existing owner Perfect Day for Rs 550 crore.

Sterling Biotech is one of the large manufacturers of pharmaceutical gelatin, di-calcium phosphate (DCP) and APIs including lovastatin, doxorubicin, epirubicin, and daunorubicin.

At one point in 2012, SBL was one of the largest global producers of gelatin, and was among the top four players with a 6.5% global market share, Zydus said.

Zydus Lifesciences share price is down 59.11 percent this year so far. The counter is up 208.10 percent in the last two years against Sensex which moved higher by 41.19 percent, as per data available on BSE.

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