Zydus Lifesciences Signs Agreement To Acquire 50% Stake In Sterling Biotech

To establish a manufacturing facility to manufacture fermented animal-free protein to cater to the global markets, Zydus Lifesciences has signed an agreement with Perfect Day, a Temasek portfolio company to acquire a 50 per cent stake in Sterling Biotech. As part of the pact, Perfect Day will sell its 50 per cent shareholding in Sterling Biotech. However, the amount has not been disclosed.

With this, Sterling Biotech is set to become a 50:50 joint venture with equal representation on the board. As per the statement by Zydus, the JV is set to accelerate the production of high-quality and eco-friendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition.

“The acquisition will also mark Zydus’ foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance,” it stated in a press release.

Perfect Day is set to boost its technological capabilities in India as part of its emerging market growth strategy, while Zydus will continue to leverage its manufacturing and commercial expertise. Perfect Day’s precision-fermented protein is found in ice creams, cream cheese, sports nutrition products, while Sterling Biotech is currently engaged in manufacturing and selling of fermentation-based API products and gelatine

Sharvil Patel, Managing Director, Zydus Lifesciences stated, “We are excited to join forces with Perfect Day and create a win-win combination that leverages both our strengths and expertise to create value for the consumers.”

Narayan TM, Interim Chief Executive Officer (CEO), Perfect Day said, “This partnership allows Perfect Day to significantly boost its capabilities to meet the demands of the fast-growing global market. We deeply value our collaboration with Zydus and believe this joint venture will allow both parties to benefit from each other's expertise.”