The proposed merger of Carlyle portfolio companies Sequent Scientific and Viyash Life Sciences has got overwhelming support from shareholders, the company’s management told ET.
It secured approval from 99.98% of the former’s public shareholders on August 30. While Sequent is listed, Viyash Life Sciences is privately held. The former is an animal health company, and the latter is into human health.
The ₹8,000-crore merger has the potential to create a global company with benefits of synergies for both, said Hari Babu Bodepudi, the proposed group CEO-designate of the combined entities.
“Shareholders on both sides have provided overwhelming support to the merger,” said Hari Babu, founder of Viyash Life Sciences. He was earlier the global chief operating officer of the world’s largest generics company Mylan, now known as Viatris.
Hari Babu founded Viyash Life Sciences in 2019 after quitting his job at Mylan. He will be getting a little under 10% stake in the merged entity in lieu of his holding in Viyash, making him the second-largest shareholder after Carlyle.
Hari Babu noted opportunities for Sequent Scientific include a growing market for drugs for companion animals especially in the West and the lack of generics in the animal health segment.
“Sequent Scientific will tap into the opportunity for generics of animal health products,” he said.
Both companies together will have 15-16 manufacturing sites.
“Viyash has 9 sites. Sequent requires a lot of backward integration capabilities. They have limited sites, and they are depending on other companies for intermediates manufacturing,” he said.
He said Viyash could benefit from Sequent’s relationships with several innovator companies making drugs for the companion animal segment. This, he said, could enable it to become a contract developer and manufacturer.
Source: Economic Times