Sequent Scientific , a listed animal health company, has received overwhelming support from its public shareholders for its proposed merger with Viyash Life Sciences, a privately-held human health firm. The merger, valued at ₹8,000.00 crore, marks a significant move in the healthcare sector, combining expertise in animal and human health under one roof.
Key Highlights of the Merger
Shareholder Approval: 99.98% of Sequent Scientific’s public shareholders voted in favor of the merger on August 30.
Merger Value: The deal is estimated at ₹8,000.00 crore.
Portfolio Combination: The merger brings together Carlyle’s portfolio companies from animal health (Sequent) and human health (Viyash) sectors.
Leadership and Ownership Structure
New Leadership: Hari Babu Bodepudi, founder of Viyash Life Sciences and former global COO of Mylan, is set to become the group CEO-designate of the merged entity.
Ownership: Post-merger, Bodepudi will become the second-largest shareholder, holding just under 10% stake. Carlyle will remain the largest shareholder.
Operational Synergies
Manufacturing Capacity: The combined entity will operate 15-16 manufacturing sites.
Contribution: Viyash Life Sciences will bring 9 manufacturing sites to the merger, enhancing backward integration capabilities for Sequent.
Strategic Benefits:
Sequent gains access to generics opportunities in animal health products.
Viyash can leverage Sequent’s relationships with innovator companies in the companion animal segment.
Industry Impact
The merger represents a strategic move to create a more vertically integrated and diversified healthcare company. By combining Sequent’s strengths in animal health with Viyash’s human health expertise, the new entity is positioned to explore synergies across both sectors.
This consolidation reflects the growing trend of integration between various healthcare segments, potentially leading to more efficient drug development and manufacturing processes that could benefit both animal and human health markets.
The strong shareholder approval indicates confidence in the merger’s potential to create value and drive growth in the competitive healthcare landscape.
Source : scanx
