Zydus’ animal health unit to buy a minority stake in Mylab for nearly US$13M

INDIA – Zydus Animal Health and Investments Limited, a wholly owned subsidiary of Zydus Lifesciences Limited, is in advanced talks to buy a minority stake of 6.5% in Mylab Discovery Solutions for Rs. 106 crores (around US$13 million).

According to the recent regulatory filings, the proposed buyout deal is expected to create opportunities for advancements in precision medicine, personalised treatments, and preventive care.

The transaction is subject to customary closing conditions and is expected to close in two months within the current fiscal year.

In regulatory filings, the drugmaker said: “Zydus Animal Health and Investments Limited will acquire 65,06,500 fully paid-up equity shares of Mylab, each with a face value of Re 1 per share, representing 6.5% of Mylab’s total paid-up equity share capital.”

It is part of Zydus Lifesciences’ growth plan to buy out specialty assets in the United States, and strong brands in India, as well as explore investment opportunities in certain assets in Europe.

Zydus Lifesciences is a leading Indian pharmaceutical company with in-depth domain expertise in healthcare and strong capabilities across the spectrum of the pharmaceutical value chain.

The Indian drug maker provides comprehensive and complete healthcare solutions, including formulations, active pharmaceutical ingredients, animal healthcare products, and wellness products.

Through its animal health unit, Zydus Lifesciences has signed a definitive agreement to acquire a 6.5% minority stake in Mylab Discovery Solutions from Adar Poonawalla-led Rising Sun Holdings Pvt Ltd (RSHPL).

It aligns with the company’s commitment to making meaningful differences in consumers’ lives by providing quality healthcare solutions globally.

“The proposed investment in Mylab will help the company to participate in the fast-growing diagnostics space, which is expected to witness increased penetration through in-clinic solutions with Point-of-Care-Testing devices,” stated Zydus Lifesciences.

Following the share purchase, Zydus Lifesciences Limited will make its market debut in the diagnostic industry.

Mylab Discovery Solutions is an Indian diagnostic company that offers a wide range of solutions applicable in diverse markets including clinical diagnostics, pharmaceutical drug discovery, biomedical research, agrigenomics, and animal and food safety.

The company also provides a portfolio of diagnostic kits for pathogen detection and viral load monitoring to empower laboratories and hospitals to obtain reliable, timely, and actionable answers.

The combination of Zydus’s last-mile access and research & development capabilities with the R&D expertise of Mylab in diagnostics has the potential to bring decentralised healthcare solutions to the masses.

The strategic deal aligns with the companies’ expansion strategy focusing on decentralized healthcare.

On his part, Sujit Jain, Director of Strategy at Mylab Discovery Solutions, said: “For the first time in India, a pharmaceutical company, a diagnostic company, and a vaccine manufacturer will join forces to advance innovation in healthcare.”

Upon closing this million-dollar investment, the companies plan to invest in empowering individuals, healthcare providers, and communities with timely, and accurate diagnostics, effective treatments, and localized healthcare services.

This deal comes shortly after Thermo Fisher Scientific and Mylab Discovery Solutions agreed to design, manufacture, and market Applied Biosystems TaqPath PCR kits for infectious diseases across.

The Applied Biosystems TaqPath PCR kits are designed to deliver confidence and reliability for the diagnostic development and testing of specific antiviral antibodies.

The real-time PCR kits can be used for the qualitative detection of Multi-Drug Resistant Tuberculosis (MTB MDR), M. Tuberculosis complex (MTB), Hepatitis B Virus (HBV), Hepatitis C Virus (HCV), and Human Immunodeficiency Virus (HIV), and for genetic analysis (HLA B27).

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