Zydus Lifesciences Limited , a global innovation-driven lifesciences company, has announced plans to acquire a controlling stake in Amplitude Surgical, a leading European MedTech company specializing in high-quality lower-limb orthopaedic technologies. This strategic move marks Zydus's entry into the medical devices sector and represents a significant expansion of its healthcare portfolio.

Key Highlights of the Acquisition

• Zydus will acquire an 85.6% stake in Amplitude Surgical at €6.25 per share, totaling €256.8 million.
• The acquisition price represents a premium of 80.6% over Amplitude Surgical's last closing price.
• Following the initial acquisition, Zydus plans to make a mandatory simplified cash tender offer for the remaining shares at the same price.
• If conditions are met, Zydus intends to proceed with a compulsory acquisition of remaining shares and delist Amplitude Surgical.

Strategic Rationale and Market Opportunity

Dr. Sharvil Patel, Managing Director of Zydus Lifesciences Limited, commented on the acquisition: "Our legacy in science, health and innovation has enabled a deep understanding of patient journey and their care pathways. We believe this was a natural extension in the field of medical technology."

The medical device market, estimated at over half a trillion dollars globally, presents significant growth opportunities. The Indian government has recognized the medical device sector as a sunrise sector with strong growth potential, aligning with Zydus's strategic expansion plans.

Amplitude Surgical: A European MedTech Leader

Amplitude Surgical, founded in 1997 and headquartered in France, has established itself as a European leader in lower-limb orthopaedics. The company specializes in designing and developing knee and hip prostheses. Key financial highlights include:

H1 FY2025 sales represent a 5% YoY growth.

Transaction Details and Timeline

The acquisition is subject to several conditions, including:

• Consultation with Amplitude Surgical's employee representative bodies
• Approval from the French Minister of Economy for foreign investment control
• Completion of reinvestment by Olivier Jallabert (Amplitude Surgical's CEO and Founder) of a portion of his proceeds into the Amplitude group

The transaction is expected to be completed, and the mandatory tender offer filed with the Autorité des Marchés Financiers (AMF) by June 2025, subject to regulatory approvals.

Management Continuity

Olivier Jallabert, Founder and CEO of Amplitude Surgical, is expected to remain involved with the company post-acquisition, ensuring continuity in leadership and expertise.

Market Impact

The announcement has likely sparked interest in both Zydus Lifesciences and Amplitude Surgical shares. Investors and market analysts will be closely watching the developments of this acquisition, which represents a significant move in the MedTech sector and showcases Zydus's ambition to expand its healthcare offerings globally.

As the transaction progresses, stakeholders will be keen to see how Zydus leverages Amplitude Surgical's expertise and market position to drive growth in the medical devices segment, potentially reshaping the competitive landscape in the orthopaedic technologies market.

Zydus Lifesciences Limited (NSE: ZYDUSLIFE, BSE: 532321) has achieved a significant milestone in its pharmaceutical manufacturing capabilities. The company recently announced that it has received final approval from the United States Food and Drug Administration (USFDA) to manufacture Ketoconazole Shampoo, 2%.

Product Details and Market Potential

The newly approved Ketoconazole Shampoo, 2%, is the generic equivalent of Nizoral® Shampoo, an antifungal medication widely used to treat dandruff, fungal infections, and various skin conditions. This approval opens up a substantial market opportunity for Zydus, as the annual sales of Ketoconazole shampoo in the United States stood at $68.89 million, according to IQVIA MAT data from January 2025.

Manufacturing and Production

Zydus plans to produce the Ketoconazole shampoo at its state-of-the-art topical manufacturing facility located in Changodar, Ahmedabad. This strategic decision allows the company to leverage its existing infrastructure and expertise in topical formulations.

Expanding Product Portfolio

With this latest approval, Zydus Lifesciences has further solidified its position in the generic pharmaceutical market. The company now boasts an impressive tally of 418 USFDA approvals. Since the commencement of its filing process in the fiscal year 2003-04, Zydus has submitted a total of 483 Abbreviated New Drug Applications (ANDAs) to the FDA, as of December 31, 2024.

Implications for Investors

This regulatory milestone underscores Zydus Lifesciences' commitment to expanding its product offerings and tapping into lucrative market segments. The approval not only enhances the company's generic portfolio but also demonstrates its capability to meet stringent FDA requirements for manufacturing complex pharmaceutical products.

As Zydus continues to strengthen its presence in the U.S. market, investors and industry observers will be keen to see how this new product approval translates into revenue growth and market share gains in the coming quarters.