Zydus Lifesciences Ltd. on Tuesday said it has acquired U.K.-based LiqMeds Group for GBP 68 million (around Rs 689 crore).
The Ahmedabad-based group, through its wholly-owned subsidiary Zydus Pharmaceuticals UK Ltd, will also pay yearly earn-outs until 2026 depending on the achievement of certain agreed milestones towards the acquisition.
LiqMeds Group of companies specialises in the development, manufacturing and supply of oral liquid products for global markets.
The group's subsidiary LM Manufacturing Ltd. has an oral liquids manufacturing site at Weedon, Northampton, U.K., which supplies products to the U.S. and U.K markets.
"Zydus will pay an upfront consideration of GBP 68 million and yearly earn-outs until 2026 depending on the achievement of certain agreed milestones towards the acquisition of the LiqMeds Group of companies," the company said in a regulatory filing.
The transaction will be EPS accretive for Zydus from the first year of acquisition, it added.
"We believe that liquid orals is a large, growing market and serves unmet needs with significant new market expansion opportunities," Zydus Lifesciences Managing Director Sharvil Patel said.
In line with the patient-centric approach, the company believes that oral liquid formulations would help geriatric and paediatric patients, bringing in greater ease of convenience and therapy compliance, he added.
Shares of Zydus were trading at 0.89% lower at Rs 574.70 apiece on the BSE.
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