Shares of Zydus Lifesciences Ltd. are trading flat after reaching a day’s high of Rs 1,125 on 17th September, following the board’s approval of the acquisition of Sterling Biotech’s Application Programming Interface (API) business for Rs 84 crore. This announcement comes just days after the company revealed it had acquired a 50% stake in Sterling Biotech.

The board of directors, at their meeting on 17th September, approved the Business Transfer Agreement (BTA) to acquire the active pharmaceutical ingredient (API) business of Sterling Biotech on an asset sale and going concern basis. The consideration for the transaction will be Rs 840 million on a cash-free and debt-free basis, with no particular value assigned to individual assets and liabilities.

The firm stated that Sterling Biotech’s API business is a strategic fit due to its fermentation-based products and manufacturing facility at Masar, Gujarat, which is near the company’s Dabhasa facility and aligns with its strategic and commercial goals.

Earlier, they announced the acquisition of a 50% stake in Sterling Biotech Ltd. from its previous owner, Perfect Day, for Rs 550 crore.

Zydus highlighted that in 2012, Sterling Biotech was one of the largest global producers of gelatin, holding a 6.5% share of the global market, ranking among the top four players worldwide.

The stock has surged almost 59% year-to-date. The company’s market capitalisation dropped to Rs 111,556 crore.

At 3:30 PM, the shares of Zydus Lifesciences closed 0.65% lower at Rs 1,108.65 on NSE.

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