Zydus Life subsidiary to buy 6.5% stake in Mylab for Rs 106 crore
Summary
Zydus Animal Health and Investments Ltd (ZAHL), a wholly owned subsidiary of Zydus Lifesciences Ltd, has entered into a Share Purchase Agreement with Rising Sun Holdings Pvt Ltd and Mylab Discovery Solutions Pvt Ltd.The agreement involves Zydus Animal Health and Investments Ltd acquiring 65,06,500 fully paid-up equity shares of Mylab, each with a face value of Re 1 per share, representing 6.5 percent of Mylabs total paid-up equity share capital. The agreed consideration for this acquisition is Rs 106 crore.Read more | Zydus Lifesciences gets USFDA nod for generic acne-treating drugMylab-which has a turnover of Rs 95 crore for the year ended March 31, 2023-is engaged in the business of researching, developing, manufacturing, marketing and selling in-vitro diagnostics kits, equipment, reagents and related therapeutic products that are linked to its diagnostic portfolio and providing portfolio solutions to other labs and hospitals.The proposed investment in Mylab will help the company to participate in growing diagnostics space which is expected to witness increased penetration through in-clinic solutions with Point of Care Testing devices, Zydus Lifesciences said in a regulatory filing.The acquisition is expected to be completed within two months from the date of signing the share purchase agreement.In the latest earnings call with analysts, Zydus Lifesciences had said that the company is looking for opportunities to buy out specialty assets in the US, strong brands in India and may even invest in certain assets in Europe.In Q4 of FY23, consolidated net sales rose 30 percent YoY to Rs 5,010.60 crore, led by core businesses--India and US formulations. The US business benefited from one-time new business opportunities and ramp-up in new launches such as gRevlimid and gTrokendi XR. Whereas net profit was down 25 percent on year to Rs 296.60 crore in the quarter ending March 2023.