Zydus Lifesciences expands global reach with strategic investments in Medtech and Rare Disease Therapeutics

Zydus Lifesciences is making strategic advancements in the healthcare sector, reinforcing its position in pharmaceuticals and medical technology. 

The company has entered exclusive negotiations to acquire an 85.6 per cent stake in France-based Amplitude Surgical for €256.8 million, marking a significant expansion into the global medtech market. Additionally, through its venture capital arm, Zynext Ventures USA LLC, Zydus has invested in Illexcor Therapeutics, a biopharmaceutical firm focused on next-generation oral therapies for sickle cell disease (SCD).

Zydus' planned acquisition of Amplitude Surgical underscores its commitment to diversifying beyond pharmaceuticals into medical devices. Amplitude, a leading French medtech company specializing in lower-limb orthopaedic solutions, reported €106 million in revenue and €27.1 million in EBITDA in FY24. Post-acquisition, Zydus intends to make a mandatory cash offer for the remaining shares, potentially valuing the full acquisition at approximately €300 million. (Source Reuters)

This move is aligned with Zydus’ long-term strategy to strengthen its presence in high-growth medical segments such as orthopaedics, interventional cardiology, and nephrology. The acquisition will enable the company to expand its portfolio and enter global markets with a strong medical device offering. (Source: Reuters)

Through Zynext Ventures, Zydus has invested in Illexcor Therapeutics, a biotech firm developing ILX002, an innovative oral therapy for sickle cell disease. ILX002 is designed to prevent haemoglobin polymerisation, addressing the underlying cause of SCD. Currently, in preclinical development, the drug has the potential to provide a transformative treatment option for millions of patients globally. (Source: Yahoo Finance)

Zydus' investment aligns with its broader vision of addressing unmet medical needs in rare and chronic diseases. By supporting novel therapeutic solutions, the company is strengthening its position in the biotech sector while contributing to advancements in patient care.

Strategic Implications for the Indian Healthcare Sector

Zydus' dual approach—expanding into medical technology and investing in cutting-edge drug development—has several implications for India’s healthcare ecosystem:

Strengthening Domestic Medical Device Manufacturing: The acquisition of Amplitude Surgical provides Zydus with advanced orthopaedic technology, reducing reliance on imports and supporting India’s "Make in India" initiative for medical devices.

Enhancing Market Competitiveness: With India importing 80-85 per cent of its medical devices (valued at $8.2 billion in FY24), Zydus' entry into the medtech sector could contribute to self-sufficiency and innovation in this space.

Expanding Global Footprint: Leveraging its international network, Zydus can introduce Amplitude’s products to new markets, positioning India as a key player in affordable, high-quality medical solutions.

Addressing Chronic Disease Burden: With a focus on orthopaedics, nephrology, and interventional cardiology, Zydus aims to expand its offerings in critical areas such as drug-eluting stents and dialysis solutions, addressing growing healthcare needs in India and beyond.

By broadening its portfolio through strategic acquisitions and biotech investments, Zydus is positioning itself as a comprehensive healthcare solutions provider, strengthening its leadership in pharmaceuticals and medical technology on a global scale.

References:

• International Diabetes Federation (IDF) Reports on Sickle Cell Disease.
• EY Report on India’s Medical Devices Market, November 2023.
• Amplitude Surgical Financial Reports, FY24.

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