Zydus Lifesciences gains on acquiring business undertaking from Watson Pharma

Zydus Lifesciences added 1.92% to Rs 406.75m after the company said that it has entered into a business transfer agreement (BTA) for purchase of one of the business undertakings of Watson Pharma (Watson) on a going concern basis.

The acquisition is being made by way of slump sale, without values being assigned to individual assets and liabilities, on cash-free and debt-free basis at a lump-sum consideration of Rs 46.77 crore, subject to certain closing date adjustments as provided in the BTA entered into between Zydus and Watson.

The aforementioned business undertaking of Watson Pharma, which is a part of Teva Group, is engaged in the business of developing, manufacturing, marketing and sale of active pharmaceutical ingredients (APIs). The business undertaking was catering to the API requirements of Teva Group and there was no external sale to third parties.

"The proposed transaction will help the Company to expand its presence in the APIs space through increase in product pipeline and manufacturing capacity, Zydus Lifesciences said in a statement.

The company expects to conclude the transaction by 31 May 2023.

Zydus Lifesciences is engaged in an integrated pharmaceutical company with business encompassing the entire value chain in the research, development, production, marketing and distribution of pharmaceutical products.

On consolidated basis, the company's net profit declined 82.6% to Rs 522.50 crore despite of 7.6% rise in revenue from operations to Rs 3942.60 crore in Q2 FY23 over Q2 FY22.

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