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.

Sequent Scientific Limited , a leading animal health company, has reported robust financial results for the first quarter of fiscal year 2026, demonstrating significant growth across key metrics.

Financial Highlights

• Revenue reached INR 4,414.00 million, marking a 13.1% year-on-year growth
• Pre-ESOP EBITDA grew by nearly 25% to INR 602.00 million, with a margin of 13.6%
• Profit after tax surged by 93.7% year-on-year to INR 176.00 million

Business Performance

Formulations Business

The formulations business, accounting for 75% of the company's operations, delivered a strong performance:

• 13% year-on-year growth and 11% sequential growth
• Europe: 4% year-on-year growth despite a high base, with 20% sequential growth
• Emerging markets: 25% year-on-year growth supported by higher exports and strategic price increases
• India: 8% year-on-year growth, with field force expansion from less than 100 to nearly 200 people

API Business

The API segment showed significant momentum:

• Reached the INR 100.00 crore mark for the quarter
• 14% year-on-year growth and 21% sequential growth
• Received a new EU CEP approval during the quarter

Strategic Developments

• Successful GMP approval of the Spanish manufacturing facility, preparing for new product introductions
• Established front-end presence in Mexico, a large animal health market
• Expanded field force in India to support brand-building efforts
• Merger with Viyash Life Sciences progressing on track, with key regulatory approvals received

Viyash Life Sciences Performance

Viyash Life Sciences, soon to be merged with Sequent Scientific, also reported strong results:

• Revenue grew by 4% to INR 353.00 crores
• Adjusted EBITDA grew by 19% year-on-year to INR 68.00 crores
• EBITDA margins improved to 19.5%, a 2.4% year-on-year increase

Combined Entity Outlook

The combined performance of Sequent Scientific and Viyash Life Sciences shows promising growth:

• Combined revenue grew by 8.7% year-on-year
• Combined EBITDA grew by 21% year-on-year
• Adjusted EBITDA of INR 129.00 crores with 16.2% margins, an improvement of 1.7%

Merger Update and Synergies

The proposed merger between Sequent Scientific and Viyash Life Sciences is proceeding as planned:

• Received approvals from the Competition Commission of India and Stock Exchanges
• NCLT shareholders' and creditors' meeting scheduled for August 30, 2025
• Integration planning underway, focusing on R&D, manufacturing, procurement, and sales synergies

Rajaram Narayanan, Managing Director and CEO of Sequent Scientific, commented on the results: "The consistent improvement in results over the last few quarters signals a transformation in the way we have operated and deliver value. We have moved beyond consolidation and course correction into a phase of accelerated growth as we shape a future-ready company."

As Sequent Scientific continues to strengthen its position in the animal health market and progresses with its strategic merger, the company appears well-positioned for sustained growth and value creation in the coming quarters.