"Zydus Lifesciences: A Strategic Move into MedTech with Amplitude Surgical Acquisition"

Zydus Lifesciences Ltd. has made a bold move into the medical technology sector by entering exclusive negotiations to acquire a majority stake in Amplitude Surgical SA, a leading French orthopedics company. This strategic acquisition, valued at 300 million euros or around Rs 2,851 crore, is set to expand Zydus's portfolio into high-quality, lower-limb orthopedic technologies. The deal, expected to be completed by June 2025, represents a significant step in Zydus's global MedTech strategy and aligns with its proven track record in life sciences and wellness segments.

The acquisition involves Zydus purchasing 85.6% of Amplitude Surgical's shares at €6.25 per share, aggregating to €256.8 million. This price represents an 80.6% premium over the last closing price and premia of 88.2% and 92.2% over the 3-month and 6-month volume-weighted average prices, respectively. The substantial premium indicates the market's perception of Amplitude Surgical's value and growth potential. Following the acquisition of the controlling stake, Zydus will make a mandatory offer to buy the remaining 14.4% stake for €43.2 million via a simplified cash tender offer. Post-acquisition, Amplitude Surgical will be delisted from the Paris stock exchange.

Amplitude Surgical, a European MedTech leader, specializes in the design, development, and marketing of orthopedic products for primary and revision surgery. The company's portfolio includes knee and hip prostheses, which are implanted in place of damaged or worn-out joints. Supported by PAI Partners, Amplitude Surgical has experienced significant growth over the last four years, driven by new product development, international growth, investments in manufacturing capabilities, and R&D. In fiscal year ended June 30, 2024, Amplitude Surgical generated sales of €106.0 million and EBITDA of €27.1 million on a consolidated basis under IFRS. For the 6 months ended December 31, 2024, Amplitude Surgical's consolidated sales amounted to €51.5 million (a growth of 5% Y-o-Y at current exchange rates) with an EBITDA margin of approximately 25.4% (unaudited figures).



The acquisition of Amplitude Surgical aligns with Zydus's global MedTech strategy, which focuses on high-quality products and solutions for patients with cutting-edge research and innovation around design and engineering. The medical device market alone is estimated at over half a trillion dollars globally, and the Government of India has recognized the medical device sector as a sunrise sector with strong growth potential. Zydus MedTech is focusing on state-of-the-art manufacturing capabilities that will enable high-quality solutions supported by a specialist team. The business currently markets interventional cardiology products.

Dr. Sharvil Patel, Managing Director of Zydus Lifesciences, stated, "Our legacy in science, health, and innovation has enabled a deep understanding of patient journeys and their care pathways. We believe this was a natural extension in the field of medical technology. Our commitment to quality excellence, continuous investments in R&D, and expertise in manufacturing will guide our foray into highly specialized MedTech products, adding a new dimension to our operations. In Amplitude Surgical, we see several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing, and geographies."

The acquisition of Amplitude Surgical by Zydus Lifesciences represents a strategic move into the MedTech sector, leveraging the company's expertise in manufacturing and R&D to expand its portfolio into high-quality, lower-limb orthopedic technologies. The substantial premium paid for the acquisition indicates the market's perception of Amplitude Surgical's value and growth potential. The deal, expected to be completed by June 2025, aligns with Zydus's global MedTech strategy and is set to expand its market presence and solidify its position as a global innovation-driven lifesciences company.