Share of Sequent Scientific (NSE: SEQUENT) rose sharply by more than 12 percent on 27 September.
The company had announced a Rs 8,000 crore merger with Viyash Life Sciences a day earlier.
Its shares have risen after this news. Sequent Scientific is in the business of animal health.
Under this merger, shareholders of Viyash Life Sciences will get 56 shares of Sequent for every 100 shares, and after the merger, Sequent will operate as the only listed company.
The two companies said in a presentation to investors that the objective of this merger is to create a differentiated, global end-to-end integrated platform.
That will have strong operating and R&D resources and will be a market leader in animal pharmaceuticals.
Viyash Life Sciences has 10 manufacturing plants, one of which is in New Jersey, USA.
The company produces active ingredients in pharmaceutical treatment (APIs) and formulations for the human health sector.
The two companies said in a joint statement that the merger will create an integrated business with a strong in-house R&D and manufacturing platform.
Post-merger, the company’s manufacturing capacity will increase 5 times, the size of the R&D team will increase 6 times, the number of USFDA facilities will increase 9 times and the capacity for new product filings will increase 8 times.
This will further strengthen the leadership in the animal health market.
Sequent Scientific reported a revenue of around Rs 1,400 crore in FY24 and its operating profit was Rs 100 crore. It has 7 manufacturing sites in India, Spain, Brazil and Turkey.
Sequent CEO Rajaram Narayanan said This is an important step towards making our animal health business a global leader.
This merger will help enhance our product development and R&D capabilities.
Viash founder Haribabu Bodepudi also welcomed the merger.
He said This merger brings together two businesses that are committed to innovation, operational excellence, and delivering world-class solutions to customers.
Viash, who was previously the COO of global drug company Mylan (now Viatris), called the merger a welcome move.
He said This merger brings together two businesses that are committed to innovation, operational excellence, and delivering world-class solutions to customers.”
After the merger, the value of the combined entity will be around Rs 8,192 crore.
Sequent is already a qualified supplier for intermediates to Viyash, which manufactures APIs at a large scale for the US market.
In total, the joint venture will have 16 manufacturing plants, 10 of which have been approved by the USFDA.
Table of Contents
Quick Fact
| Company name | Sequent Scientific |
|---|---|
| Business | Animal health |
| Revenue (FY24) | ₹1,400 crore |
| Operating profit (FY24) | ₹100 crore |
| Total manufacturing sites | 7 |
| Countries with manufacturing sites | India, Spain, Brazil, Turkey |
| CEO | Rajaram Narayanan |
| Possible combined value after merger | ₹8,192 crore |
| Merger | With Viyash Life Sciences |
| Merger worth | ₹8,000 crore |
| Share exchange ratio | 56 Sequent shares for every 100 Viyash shares |
| Post-merger company status | Sequent will operate as the only listed company |
| Increase in manufacturing capacity (post-merger) | 5 times |
| Increase in R&D team (post-merger) | 6 times |
| Increase in USFDA facilities (post-merger) | 9 times |
| Increase in new product filings capacity (post-merger) | 8 times |
| Objective of merger | Global end-to-end integrated platform for animal pharmaceuticals |
Quick Fact
| Company name | Viyash Life Sciences |
|---|---|
| Business | Human health (APIs and formulations) |
| Total manufacturing sites | 10 |
| Location of US facility | New Jersey |
| Viyash founder | Haribabu Bodepudi |
| Merger with | Sequent Scientific |
| Post-merger manufacturing sites | 16 (10 approved by USFDA) |
| API manufacturing scale | Large scale for US market |
| Objective of merger | Innovation, operational excellence, customer solutions |
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