This pharmaceutical company engaged in the business of manufacturing APIs, generics, vaccines and wellness products came into focus on Tuesday after entering into exclusive negotiations to acquire an 85.6 percent controlling stake in Amplitude Surgical SA, France for Rs 2440 crore.
Stock Performance
With a market capitalization of Rs. 90,621.43 crore, Zydus Lifesciences Ltd climbed 1 percent in Tuesday’s trading session and made a high of Rs. 904.55 per share compared to its previous closing price of Rs. 893.20 per share.
What Happened
The Board of Directors approved the signing of a Put Option Agreement, Share Purchase Agreements, and related agreements to acquire an 85.6 percent controlling stake in Amplitude Surgical SA, France, either directly or through its affiliates. The acquisition will be made from existing shareholders at a price of €6.25 (Rs 595) per share, which is at an 81 percent premium to the last closing price. The transaction totals €256.8 million (Rs 2,440 crore).
Once the acquisition is finalized, Zydus plans to take over the remaining shares through a mandatory cash tender offer, at the same price of €6.25 apiece. If the required conditions are met after the tender offer, Zydus intends to proceed with a compulsory buyout of the remaining minority shares (squeeze-out) and subsequently delist the company.
Amplitude Surgical is a Medtech market leader in orthopaedics, with a global presence supported by a robust distribution network and high-quality products that meet industry standards.
Company Overview
Zydus Lifesciences, formerly known as Cadila Healthcare, was formed under the Zydus group. It is the 5th largest generic company in the United States in terms of prescription. The company has 8 Research and Development Centres for their various pharmaceutical products including NCE, APIs, Generics, Vaccines, Biosimilars and Wellness products.
Financial Performance
Looking at the financials, Zydus Lifesciences reported a 17 percent increase in revenue from Rs. 4,505 crore to Rs. 5,269 crore in Q3 FY25. This was accompanied by a 30 percent increase in net profits from Rs. 790 crore to Rs. 1,026 crore during the same quarter.
Written by Shwetha Sairam
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