Pharmaceutical giant Zydus Lifesciences has announced an agreement to acquire a 50% stake in Sterling Biotech, a manufacturing company based in Mumbai, purchased by the Californian biotech Perfect Day from bankruptcy for $78 million in 2022. Both Zydus and Perfect Day will have equal representation on Sterling Biotech’s Board post-transaction.
It is worth highlighting that India is the world’s largest milk producer, contributing 25% of global milk production. According to Zydus Lifesciences, the joint venture aims to make India a “bright spot” in the global supply chain of sustainable proteins to reduce the environmental impact of food production and meet the growing demand for ethically sourced nutrition.
“We are excited to join forces with Perfect Day and create a win-win combination”
The 50:50 joint venture will combine Zydus’ manufacturing strength with Perfect Day’s advanced technology in precision fermentation to establish a dedicated facility to produce animal-free proteins for global markets alongside its existing operations. Sterling Biotech currently manufactures dicalcium phosphate, some active pharmaceutical ingredients, and gelatin for capsules in two manufacturing facilities in Gujarat.
A supply chain hub of new ingredients
Dr. Sharvil Patel, managing director at Zydus Lifesciences, commented, “We are dedicated to promoting growth through partnerships and are consistently exploring new collaborations to position India as a premier global supply chain hub. We are excited to join forces with Perfect Day and create a win-win combination that leverages both our strengths and expertise to create value for consumers.”
Zydus Lifesciences is India’s fourth-largest pharmaceutical company, with over 30 manufacturing plants and 27,000 employees worldwide. It offers various healthcare therapies, focusing on innovative solutions, including vaccines, therapeutics, biologicals, and biosimilars.
With this new investment, Zydus is entering the specialized biotech sector for health and nutrition, targeting consumers who prefer animal-free protein or are lactose intolerant.
© Brave Robot (Previously a brand of Perfect Day)
A fast-growing global market
Meanwhile, Perfect Day, established in 2014, specializes in creating animal-free whey protein to promote a sustainable future. Precision fermentation is said to significantly reduce the environmental impacts of protein production compared to conventional methods while addressing animal welfare concerns.
In partnerships with Unilever, Strive Nutrition, Tomorrow Farms, and through its D2C subsidiary The Urgent Company, Perfect Day’s fermented whey protein has launched ice cream, sports nutrition items, and alternative milk and yogurts.
In a strategy toward growth, Perfect Day’s business model later shifted to a B2B focus, selling The Urgent Company to food tech innovator Superlatus. Additionally, this January, the Californian company raised $90 million in a Series E round and announced that co-founders Ryan Pandya and Perumal Gandhi were stepping down from a decade of operational management roles. Reportedly, Perfect Day is facing an ongoing lawsuit with manufacturing partner Olon and has undergone some layoffs.
Mr. Narayan TM, Interim CEO of Perfect Day, shared, “This partnership allows Perfect Day to significantly boost its capabilities to meet the demands of the fast-growing global market. We deeply value our collaboration with Zydus and believe this joint venture will allow both parties to benefit from each other’s expertise.”
