Sequent Scientific jumps ~12% on ₹8,000 Crore merger with Viyash Life

27 Sep 2024 , 03:01 PM

Sequent Scientific Ltd, which is in the animal health sector, saw its shares rise by more than 12% on September 27 after announcing a ₹8,000 Crore merger with Viyash Life Sciences.

The Carlyle Group portfolio firms have announced the merger’s swap ratio. Viyash stockholders will get 56 equity shares of Sequent for every 100 Viyash equity shares, and Sequent will be the surviving listed firm once the arrangement is implemented.

The aim for the merger is to “build a unique, differentiated, global end-to-end integrated platform with leadership in animal pharmaceuticals, supported by strong operating and R&D backbone,” according to the firms’ investor presentation.

Viyash has several manufacturing sites, one of which is located in New Jersey, United States. It manufactures active pharmaceutical ingredients (APIs) and drug formulations for the human health segment.

The companies stated that the merger will create an integrated business with a strong in-house R&D and manufacturing platform with strengthened supply chain – Combined entity to have 5x higher manufacturing capacity, 6x larger R&D team size, 9x more USFDA facilities, and 8x higher new product filings potential. Turbocharge growth engines to maintain market leadership in the animal health industry. Opportunity to capitalise on expansion in the broader global medicines sector.

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