Zydus Animal Health and Investments Ltd. (ZAHL), which is a fully owned company of Zydus Lifesciences Ltd., has signed a Share Purchase Agreement with Rising Sun Holdings Pvt. Ltd. and Mylab Discovery Solutions Pvt. Ltd.
In accordance with the deal, Zydus Animal Health and Investments Ltd. will buy 65,06,500 fully paid-up equity shares of Mylab. Each share is worth Rs. 1 and represents 6.5 percent of Mylab’s total fully paid-up equity share capital. The price decided upon for this purchase is Rs. 106 crore.
Mylab is in the business of researching, developing, manufacturing, marketing, and selling in-vitro diagnostic kits, equipment, reagents, and related therapeutic products that are linked to its diagnostic portfolio. It also offers portfolio solutions for other labs and hospitals.
Zydus Lifesciences said in a regulatory filing that the planned investment in Mylab will help the company get into the growing diagnostics market, which is likely to see more in-clinic options with point-of-care testing devices.
After signing the share purchase deal, the acquisition should be completed within two months.
Zydus Lifesciences told investors on its most recent earnings call that the company is looking for chances to buy out niche assets in the US and strong names in India. It may also invest in certain assets in Europe.
In Q4 of FY23, combined net sales rose 30 percent year over year to Rs 5,010.60 crore. India and the US, which are key businesses, drove this growth. The US business did well because of one-time new business possibilities and the increase in sales of new products like gRevlimid and gTrokendi XR. The net earnings for the quarter ending in March 2023 were Rs 296.60 crore, which was 25% less than the same time last year.
