Large Cap Pharma Stock Gives Acquisition Update, Buy For TP Rs 1439: KR Choksey

Large cap pharmaceuticals sector company Zydus Lifesciences Ltd informed via its BSE filing on August 23 that it plans to acquire 50% stake in Sterling Biotech from Perfect Day to enter into fermentation-based protein business. Last trading price of Zydus Lifesciences Ltd shares on BSE 1178.65 per share as on August 23, 2024. Zydus Lifesciences shares slipped 9% in last 2-weeks but gained 207% in last 2-years. The company's market capitalisation stood at Rs 1,18,599.77 crore. Check details below:

Zydus Lifesciences To Acquire Stake In Sterling Biotech: As per the regulatory filing of Zydus Lifesciences dated Aug 23, "Zydus Lifesciences Limited ("Zydus") through its wholly owned subsidiary, and Perfect Day Inc., a Temasek portfolio company ("Perfect Day") have signed an agreement wherein Perfect Day will sell its ~50% shareholding in Sterling Biotech Limited ("SBL"). Post this transaction, Sterling Biotech will become a 50:50 Joint Venture ("JV") with equal representation on the Board."

The JV will establish a state-of-the-art manufacturing facility to manufacture fermented animal free protein to cater to the global markets. The JV will accelerate the production of high-quality and ecofriendly protein products, reduce environmental impact, and cater to the growing consumer demand for fermentation-based and ethically sourced nutrition. This partnership marks a significant step forward in the global effort to transform the food industry and promote a healthier planet, added the BSE filing.

The acquisition will also mark Zydus' foray into specialised biotech products for health and nutrition, specifically catering to consumers who prefer animal-free protein or suffer from lactose intolerance.

Zydus Lifesciences Shares Performance: The 52-week high price of Zydus Lifesciences Ltd shares on BSE is Rs 1323.90 apiece (09/08/2024) and 52-week low price is Rs 567.85 per share (as on 26/10/2023), respectively. Zydus Lifesciences shares zoomed 69% year-to-date, offered return of 83% in last 1-year, and offered return of 115% in last 3-years. In last 5-years, Zydus Lifesciences shares surged 435%.

Should You Buy Zydus Lifesciences Shares? Brokerage firm KR Choksey recommended investors to buy Zydus Lifesciences shares with target price of Rs 1439.

About: Zydus Lifesciences Limited (Formerly known as Cadila Healthcare Limited), a leading Indian Pharmaceutical company is a fully integrated, global healthcare provider. With in-depth domain expertise in the field of healthcare, it has strong capabilities across the spectrum of the pharmaceutical value chain. From formulations to active pharmaceutical ingredients and animal healthcare products to wellness products, Zydus has earned a reputation amongst Indian pharmaceutical companies for providing comprehensive and complete healthcare solutions, according to its official website.

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