Shares of Zydus Lifesciences Ltd. fell nearly 4% after reaching a day’s high of Rs 1,138.65 on 26th August, following the announcement that its wholly-owned subsidiary will acquire a 50% stake in Sterling Biotech Ltd. (SBL) from Perfect Day Inc., a Temasek portfolio company.

This transaction will turn Sterling Biotech into a 50:50 joint venture, with equal board representation from both Zydus and Perfect Day. The JV will build a cutting-edge facility to produce fermented animal-free protein for global markets.

The JV will speed up the production of high-quality, eco-friendly protein products, aiming to reduce environmental impact and meet the rising consumer demand for fermentation-based and ethically sourced nutrition.

The acquisition will also mark Zydus’ entry into specialized biotech products focused on health and nutrition, targeting consumers who prefer animal-free protein or have lactose intolerance.

Perfect Day’s precision-fermented protein is used in products like ice creams, cream cheese, sports nutrition items, and baked goods, offering high functionality benefits and a lower environmental impact.

The company emphasized that this transaction highlights the significance of emerging global markets for sustainable products. Sterling Biotech, currently producing fermentation-based API products and gelatine, will see the JV partners strategically assess this business while focusing on animal-free protein products.

Dr Sharvil Patel, Managing Director of Zydus Lifesciences, expressed excitement about partnering with Perfect Day, aiming to leverage combined expertise for consumer value and to position India as a global supply chain hub.

Narayan TM, interim CEO of Perfect Day, stated that the partnership will enhance Perfect Day’s ability to meet global demand, with both companies benefiting from their collaborative strengths.

At 10:30 AM, the shares of Zydus Lifesciences were trading 3.84% lower at Rs 1,133.40 on NSE.

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