Homegrown drug maker Zydus Lifesciences Limited has bought a stake in biotech company Mylab Discovery Solutions from Rising Sun Holdings, an investment company owned by Adar Poonawalla.
According to regulatory filings, Zydus has invested Rs 106 crore (around $13 million) in Mylab Discovery, securing a 6.5% stake through its wholly owned subsidiary, Zydus Animal Health & Investments Limited.
The collaboration is expected to create opportunities for advancements in precision medicine, personalised treatments and preventive care, as stated in the filings.
This investment also marks Zydus' entry into the diagnostics segment. The definitive agreement states that Zydus Animal Health and Investments Ltd 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.
According to VCCircle estimates, the investment in Mylab was valued at Rs 1,631 crore. With a revenue of Rs 95 crore as of March 31, 2023, the firm is valued at 17 times its revenue.
"By focusing on decentralized healthcare, the companies can empower individuals, healthcare providers, and communities with timely and accurate diagnostics, effective treatments, and localized healthcare services," said Hasmukh Rawal, managing director of Mylab.
Mylab operates in the field of conducting research, developing, manufacturing, marketing, and selling in-vitro diagnostic kits, equipment, reagents, and associated therapeutic products.
These products are connected to Mylab's diagnostic portfolio, and the company also offers portfolio solutions to other laboratories and hospitals. In February, Thermo Fisher Scientific chose to manufacture Applied Biosystems TaqPath PCR kits for infectious diseases such as multi-drug-resistant tuberculosis (MTB MDR), M. tuberculosis complex (MTB), hepatitis B virus (HBV), hepatitis C virus (HCV), human immunodeficiency virus (HIV), and for genetic analysis (HLA B27) in collaboration with Mylab.
The completion of the acquisition is anticipated to take place within two months following the signing of the share purchase agreement. The transaction was also subject to the fulfillment of conditions.
Zydus witnessed an increase of 30% in its consolidated net sales, amounting to Rs 5,010.60 crore, compared to the previous year. This growth was primarily driven by the company's core businesses in India and the United States. However, there was a decline of 25% in net profit, which stood at Rs 296.60 crore, for the quarter ending March 2023.