Zydus Lifesciences to acquire Sterling Biotech's API biz for Rs 84 crore

Zydus Lifesciences Ltd on Tuesday said it will acquire the 'Target Business' of Sterling Biotech primarily engaged in manufacturing of fermentation-based active pharmaceutical ingredients products and a production facility at Masa in Gujarat for a pre-agreed sum of Rs 84 crore.

In August this year when Zydus acquired a 50 per cent stake in Sterling Biotech Ltd (SBL), the company negotiated for the right to acquire the 'Target Business' of SBL at a pre-defined value.

"This right has been exercised by the company," Zydus Lifesciences said in a regulatory filing.

The board of directors of the company at their meeting held on September 17, 2024, have approved a business transfer agreement (BTA) to purchase the active pharmaceutical ingredients (API) business -- the Target 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 84 .