Zydus Animal Health and Investments Ltd (ZAHL), a wholly owned subsidiary of Zydus Lifesciences Ltd, has entered into share purchase agreements with Rising Sun Holdings Pvt Ltd and Mylab Discovery Solutions Pvt Ltd.

The agreement involves the acquisition by Zydus Animal Health and Investments Ltd of 65,06,500 paid-up shares in Mylab, each with a par value of Re 1, representing 6.5% of Mylab’s total paid-up share capital. The agreed consideration for the acquisition is Rs 106 crore.

Mylab, with a turnover of Rs 95 crore for the year ended March 31, 2023, is engaged in the research, development, manufacture, marketing and sale of in vitro diagnostic kits, devices, reagents and related therapeutic products for its diagnostic product portfolio, and provides services for other laboratory Combination solutions for laboratories and hospitals.

Zydus Lifesciences said in a regulatory filing that the proposed investment in Mylab will help the company participate in the growing diagnostics segment, which is expected to increase penetration through clinical solutions for point-of-care testing devices.

The acquisition is expected to be completed within two months of signing the equity purchase agreement.

In its latest earnings call with analysts, Zydus Lifesciences said it looked at opportunities to acquire speciality assets in the US, strong brands in India, and possibly even invest in certain European assets.

Consolidated net sales rose 30% YoY to Rs 5,010.6 crore in Q4FY23, driven by core businesses such as formulations in India and US. The US business benefited from one-time new business opportunities and the addition of new products such as gRevlimid and gTrokendi XR. Net profit for the quarter ended March 2023 fell 25% year-on-year to Rs 296.6 crore.