Zydus Lifesciences Ltd, through its wholly-owned subsidiary, has entered into a strategic agreement to acquire a 50 percent stake in Sterling Biotech Ltd (SBL) from Perfect Day Inc., a company within the Temasek portfolio. Following the completion of this transaction, Sterling Biotech will transform into a 50:50 joint venture, with equal representation from both parties on the Board, according to an official statement released by Zydus Lifesciences, which is headquartered in Ahmedabad.
This joint venture is set to establish a cutting-edge manufacturing facility dedicated to producing fermented animal-free protein, with a focus on catering to global markets. The collaboration aims to accelerate the production of premium, eco-friendly protein products, thereby reducing environmental impact while meeting the increasing consumer demand for fermentation-based and ethically sourced nutritional products.
The acquisition represents Zydus’ entry into the specialized biotech sector, specifically targeting health and nutrition products for consumers who prefer animal-free protein or who suffer from lactose intolerance. Perfect Day’s precision-fermented protein is currently utilized in a variety of products including ice creams, cream cheese, sports nutrition products, and baked goods, all of which offer significant functional benefits while having a reduced environmental footprint.
This transaction between Perfect Day and Zydus highlights the growing significance of environmentally sustainable and eco-friendly products in the global marketplace, as noted by the company. At present, Sterling Biotech Ltd is involved in the production and sale of fermentation-based API products and gelatin. With a strategic shift towards focusing on animal-free protein products, the joint venture partners will also reassess their approach to the API and gelatin business.
Dr Sharvil Patel, Managing Director of Zydus Lifesciences Ltd, emphasized their commitment to fostering growth through partnerships, stating, “We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub. 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 CEO of Perfect Day, echoed this sentiment, stating, “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.”
NovaaOne Capital Private Limited is acting as the exclusive financial advisor to Perfect Day for this transaction. This partnership is poised to set a new benchmark in the production of animal-free protein products, aligning with the global shift towards sustainable and ethically sourced nutrition.
Zydus Lifesciences Ltd is a leading Indian pharmaceutical company specializing in innovative healthcare solutions. With a strong focus on research and development, Zydus offers a broad portfolio of products, including generic drugs, vaccines, biosimilars, and wellness products. The company is committed to enhancing global health by providing accessible and affordable treatments across various therapeutic areas.
