Zydus Lifesciences Ltd shares dropped 5.90 per cent to ₹1,109.10 on the NSE at closee.
The company announced a significant joint venture today where it revealed plans to acquire a 50% stake in Sterling Biotech Limited (SBL) from Perfect Day Inc., a Temasek portfolio company. This move marks Zydus’ entry into the fermentation-based protein business.
The joint venture aims to establish a “state-of-the-art” facility for manufacturing fermented animal-free protein for global markets. Sharvil Patel, Managing Director of Zydus, expressed excitement about the partnership, which is expected to leverage both companies’ strengths and expertise.
The acquisition will be executed through Zydus’ wholly owned subsidiary. Post-transaction, SBL will become a 50:50 joint venture with equal board representation. The deal also involves strategic considerations for SBL’s existing API and gelatin business.
This partnership aligns with Zydus’ strategy to explore new collaborations and position India as a global supply chain hub in the growing market for sustainable and environmentally friendly products.