Zydus Lifesciences, India's fourth-largest pharmaceutical company, has agreed to acquire a 50% stake in Sterling Biotech from Perfect Day for INR 5.5 billion (USD 66 million). Sterling Biotech is a Mumbai-based manufacturer of pharmaceutical gelatin and fermentation-derived ingredients.

Sterling Biotech, previously purchased by Perfect Day from bankruptcy for USD 78 million in 2022, currently manufactures dicalcium phosphate, active pharmaceutical ingredients, and gelatin for capsules in two manufacturing facilities in Gujarat.

The joint venture aims to establish a dedicated facility to produce animal-free proteins for global markets, combining Zydus' manufacturing strength with Perfect Day's precision fermentation technology. This partnership is expected to position India as a premier global supply chain hub for sustainable proteins and meet the growing demand for ethically sourced nutrition.

Analyst QuickTake: After exiting its consumer-facing business in July 2023 to focus more on its B2B operations, Perfect Day raised USD 90 million in pre-Series E funding earlier this year. Having partnered with global food and beverage companies like Nestlé and Unilever in the past, this latest collaboration aligns with Perfect Day’s strategy to provide value for customers through R&D innovations.