SeQuent Scientific and Viyash Lifesciences announce strategic merger

SeQuent Scientific, a player in the global animal health industry, and Viyash Lifesciences, an integrated pharmaceutical company, have announced a strategic merger to form a global leader in animal healthcare. The merger aims to create a unique and differentiated platform, combining their respective strengths in research, development, and manufacturing, with a market reach spanning over 150 countries.

On the same day, SeQuent Scientific’s share price rose by 14.47 per cent at 2 pm, standing at Rs 217.95 apiece on the BSE.

The combined entity will have a stronger financial profile, enhanced R&D capabilities, and a streamlined supply chain, allowing it to serve global pharmaceutical clients more effectively.

 

Together, SeQuent and Viyash will operate with 16 manufacturing facilities, nine of which are approved by the USFDA, and an R&D team with over 200 scientists.

Commenting on the merger, Rajaram Narayanan, managing director and chief executive officer of SeQuent, said, “With this merger, we see immense market opportunities and believe that expanding our R&D capabilities will allow us to strengthen our leadership position. This is a transformative step in our journey to becoming a global leader in animal health.”

Speaking on the merger, Haribabu Bodepudi, chairman and chief executive officer of Viyash, shared Narayanan’s enthusiasm, adding, “This merger unites two complementary businesses with shared commitments to innovation and operational excellence. With our combined resources, we are better positioned to accelerate growth and offer high-quality products to our customers worldwide.”

Under the terms of the merger, shareholders of Viyash will receive 56 shares of SeQuent for every 100 shares of Viyash. The new shares of SeQuent will be listed on the NSE and BSE following regulatory and shareholder approvals. The merger is subject to clearance from the Competition Commission of India and the National Company Law Tribunal.

SeQuent, which operates across India, Spain, Brazil, and Turkey, is well-established in the animal health market. It distributes active pharmaceutical ingredients (APIs) and animal health formulations in more than 100 countries. Viyash, with its R&D capabilities and niche pharmaceutical formulations, adds its nine USFDA-approved plants and a wide customer base across 150+ countries to the mix.

The combined entity is expected to have a more robust financial profile, benefiting from improved margins and a stronger balance sheet. It will also have five times the R&D talent and more manufacturing capacity.

With this strategic move, the combined entity aims to further tap into global pharmaceutical markets, expand its product offerings, and capture new growth opportunities.

For this merger, KPMG and PwC served as independent valuers, while ICICI Securities provided fairness opinions to SeQuent. Financial advisors include JM Financial for SeQuent, and due diligence was conducted by KPMG for SeQuent and Ernst & Young for Viyash. Legal counsel for the deal was provided by AZB & Partners for SeQuent and Trilegal for Viyash. Bain & Co. served as a commercial due diligence advisor for SeQuent.