Zydus Lifesciences And Sterling Biotech Extend API Deal Closing To June 30 Amid Regulatory Delays

Zydus Lifesciences Ltd announced the extension of its definitive agreement to acquire Sterling Biotech Ltd's API business, originally set for December 2025 but now pushed to June 30, 2026. This follows standard practice for large pharma transactions requiring multi-regulator nods in India and abroad.
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Transaction Essentials

• ₹3,265 crore enterprise value for seven API facilities across Ankleshwar and Sika plants
• Includes key APIs like Heparin intermediates, Fermentation products
• 100% stake transfer subject to Competition Commission of India, USFDA approvals

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Strategic Rationale

Extension provides breathing room for clearances while preserving deal momentum. Zydus aims to expand backward integration in high-margin APIs, targeting global exports. Sterling streamlines into non-API focus post-transaction.

Market Reaction

Shares of Zydus held steady around ₹1,200; extension seen as procedural, not indicative of hurdles. Pharma sector watches for synergies in sterile injectables and biologics.

Sources: Marketscreener, Economic Times, BSE Filings, Moneycontrol