Ahmedabad-based Zydus Lifesciences is evaluating acquisition of a majority stake in US-based Ardelyx Inc., with the deal likely to be valued at $2.2–2.5 billion, two people aware of the development told Mint.
The proposed transaction would be funded through a ₹5,000-crore equity raise via a qualified institutional placement (QIP) and internal cash accruals, the people said. If concluded, the deal would significantly accelerate Zydus’s push into global innovative medicine, an avenue that is attracting growing interest from Indian drugmakers.
Ardelyx is a biopharmaceutical firm working on first-in-class small-molecule drugs and commercializing novel medicines with a focus mainly on gastrointestinal (GI) and cardio-renal diseases, where there are significant unmet patient needs. The company’s market capitalization as of 20 January on Nasdaq is $1.7 billion. It reported a revenue of $378 million in 2025, up 18%.
Responding to Mint’s queries on the development, Ardelyx said it was aware of buzz around Zydus. “Ardelyx does not comment on its business development activities.” Emailed queries sent to Zydus Lifesciences remained unanswered until press time.
Global pivot
Zydus has been expanding its global footprint with smaller acquisitions over the past year, as it looks to diversify beyond generic drugs. In 2025, it acquired two biologics contract development and manufacturing facilities in the US from Agenus Inc., paying $75 million upfront, plus contingent payments. The deal allowed the firm to enter biologics manufacturing and establish a presence in a key biotech hub in California, expanding its CDMO (contract development & manufacturing organization) business and enhancing its ability to serve global biotech clients.
Zydus also acquired a 100% stake in French medical devices maker Amplitude Surgical, for about €300 million, marking its medtech foray and broadening presence in Europe’s healthcare technology space.
“In the MedTech space, we have identified cardiology, nephrology, and orthopedics as the focus areas to execute our global strategy. We shall leverage Amplitude’s portfolio in the orthopaedics space to offer various value-added innovation to meet diverse patient needs for surgeons and healthcare facilities across different geographies,” managing director Sharvil Patel had told investors in a post-earnings call in November.
In the consumer wellness space, group subsidiary Zydus Wellness completed its first overseas acquisition, buying UK-based Comfort Click for around £239 million.
As of 31 March, 2025, the company had net cash of ₹4,883.6 crore.
Talk of Zydus’s planned acquisition comes on the heels of a reported buyout bid by rival drug Sun Pharmaceutical for US-based women’s health and general medicine maker Organon in a deal that could potentially be valued at $10 billion. The news was broken by The Economic Times on Monday, citing sources. In an exchange filing on Monday, Sun Pharma termed the report “speculative in nature”.
Mint had earlier reported on how innovation bets by Indian pharma companies are likely to accelerate in 2026, as opportunities in the US generic market wane on account of continued pricing pressure.
Zydus is also working on in-house innovation, having made big strides in the past year. In the quarter ended September 2025, it reported a positive topline result from a Phase 2(b)/3 clinical trial of saroglitazar magnesium in patients with primary biliary cirrhosis for the US market. The drug is approved in India for managing Type-2 diabetes with abnormal lipid levels and fatty liver conditions, and is undergoing US trials.
“We are on track to file the new drug application for saroglitazar with the US FDA in quarter 4 of FY26,” Patel told investors. The firm also has regulatory approval to start Phase-II clinical trials for its bivalent typhoid conjugate vaccine in India.
Zydus is focused on accelerating innovation to drive long-term growth across businesses, Patel said.
Zydus reported a strong Q2 FY26 performance, with revenue rising about 17% year-on-year to around ₹6,100 crore and net profit jumping nearly 38% to about ₹1,260 crore. Growth was driven by better performance in the company’s India and US formulation businesses, along with improved operating efficiency. Margins expanded as costs stayed under control, even as it continued to invest steadily in research and development, spending close to 8% of revenue.
