Zydus Lifesciences Buys Out UK-based LiqMeds Group For Rs 680 Cr

Zydus Lifesciences announced its acquisition of the UK-based LiqMeds Group, focusing on oral liquid products, in an all-cash deal worth GBP 68 million (equivalent to approximately Rs 690 crores), the company said in an exchange filing on Tuesday.

The agreement involves an initial payment of GBP 68 million along with additional annual earn-outs until 2026, contingent upon achieving predetermined milestones related to the acquisition of the LiqMeds Group of companies. Zydus foresees this transaction as having a positive impact on its earnings per share (EPS) from the very first year of acquisition.

The completion of the acquisition is anticipated within 10 working days from the date of execution. As part of this agreement, Zydus will obtain an oral liquids manufacturing site situated in Weedon, Northampton, UK. This facility caters to the US and UK markets.

In 2022, the LiqMeds Group recorded a turnover of GBP 5.3 million. The group specializes in the development, manufacturing, and supply of oral liquid products for global markets, currently distributing its products through partnerships.

Sharvil Patel, the managing director of Zydus Lifesciences, expressed optimism about the acquisition, highlighting the significant potential within the expanding market for liquid oral formulations. 

Patel emphasised the importance of such formulations in addressing unmet needs, especially among geriatric and pediatric patients, offering enhanced convenience and improved therapy compliance in line with their patient-centric approach.