This acquisition will make Sterling Biotech a 50:50 joint venture (JV) between Zydus and Perfect Day. | Photo: X@ZydusUniverse
Zydus Lifesciences, through its wholly-owned subsidiary, has entered into a strategic partnership with Perfect Day Inc, a portfolio company of Temasek, which will result in the latter selling its 50 percent stake in Sterling Biotech (SBL).
This acquisition will make Sterling Biotech a 50:50 joint venture (JV) between Zydus and Perfect Day, with equal representation on the board.
SBL currently manufactures fermentation-based products including gelatin and APIs, but the joint venture will shift its focus to non-animal protein production.
The newly formed joint venture aims to establish a manufacturing facility dedicated to producing fermented protein products without animal ingredients for global markets. This initiative aligns with the growing consumer demand for sustainable and ethically sourced nutrition and aims to meet the growing demand of consumers who prefer alternatives without animal ingredients or suffer from lactose intolerance.
While Perfect Day will enhance its technological capabilities in India as part of its market strategy, Zydus will leverage its commercial and manufacturing expertise.
This partnership marks Zydus’ entry into the specialty biotech products sector, with a particular focus on health and nutrition solutions for consumers who prefer non-animal-based proteins or who are lactose intolerant. Perfect Day’s precision-fermented protein, which is already used in a variety of products such as ice cream, cream cheese, sports nutrition products and baked goods, will be central to the joint venture’s offering. These products are noted for their high functionality, health benefits and lower environmental impact compared to traditional animal-based proteins.
Commenting on this, Sharvil Patel, CEO of Zydus Lifesciences, said: “We are excited to join forces with Perfect Day and create a win-win combination that leverages our strengths and expertise to create value for consumers.”
Commenting on the matter, Narayan TM, Interim CEO of Perfect Day, said: “This partnership enables Perfect Day to increase its capabilities to meet the demands of a rapidly growing global market. We deeply value our collaboration with Zydus and believe that this joint venture will enable both parties to benefit from each other’s expertise.”
NovaaOne Capital Private Limited acted as exclusive financial advisor to Perfect Day for this transaction.
First published: August 24, 2024 | 16:35 IS
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