Strengthening Global MedTech Footprint
Ahmedabad-based Zydus Lifesciences has announced the acquisition of an 85.6% controlling stake in France-based Amplitude Surgical SA for €256.8 million (₹2,430 crore). The pharma major will also file a mandatory cash tender offer for the remaining shares at €6.25 per share. If fully acquired, the deal will be valued at €300 million (₹2,850 crore), leading to Amplitude’s delisting from Euronext Paris.
Premium Acquisition & Regulatory Approvals
As reported by business-standard, the acquisition price represents an 80.6% premium over Amplitude’s last closing price on March 10, and premiums of 88.2% and 92.2% over its three-month and six-month volume-weighted average prices, respectively. The deal, expected to close in the first half of 2025, is subject to regulatory approvals, including clearance from France’s Economy Ministry.
Financial Performance of Zydus Lifesciences
Zydus Lifesciences reported ₹19,547 crore in revenue for FY24. In 9MFY25, its revenue rose 19% year-on-year (Y-o-Y) to ₹16,713.6 crore, with EBITDA up 31% to ₹4,933 crore and net profit increasing 25% to ₹3,354.6 crore. The acquisition will be funded through a combination of debt and internal accruals.
Zydus’ MedTech Expansion Strategy
A Mumbai-based analyst noted that Zydus has been actively working to diversify into the MedTech sector, although this business is still in its early stages. The analyst expects revenue growth from this segment in the next 18–24 months, as new products enter the market. Acquiring Amplitude Surgical strengthens Zydus’ geographical reach and enhances its portfolio in lower-limb orthopaedic technologies.
About Amplitude Surgical
Amplitude Surgical is a European MedTech leader specializing in knee and hip prostheses, which replace damaged or worn-out joints. The company, backed by PAI Partners, has experienced significant growth over the last four years, driven by:
- New product development
- International expansion
- Manufacturing investments
- R&D advancements
Amplitude’s Financial Performance
In the financial year ending June 30, 2024, Amplitude Surgical recorded €106 million in sales and an EBITDA of €27.1 million. In the six months ending December 31, 2024, the company generated €51.5 million in sales (5% Y-o-Y growth) with an EBITDA margin of 25.4%.
Strategic Vision for Medical Technology
Sharvil Patel, Managing Director of Zydus Lifesciences, called this acquisition a natural extension into the medical technology space. He emphasized Zydus’ focus on quality excellence, R&D investments, and manufacturing expertise to drive its MedTech expansion.
Entry into India’s Growing Orthopaedic Market
Currently, Amplitude Surgical has no presence in India. However, Zydus may introduce its products to the Indian market, which was valued at $791.4 million in 2023 and is projected to grow to $1,256.3 million by 2030, driven by an aging population and a rising prevalence of orthopaedic disorders.
Financial Impact & Growth Prospects
The deal will be EPS-accretive from Day 1. Amplitude Surgical has a cash flow of €27 million and surplus manufacturing capacity, eliminating the need for additional capital expenditure in the near future.
Zydus’ Expanding MedTech Business
Zydus MedTech, the company’s medical devices division, now employs over 130 professionals. Patel expects this segment to become a sizeable business within the next five years.
Apart from orthopaedics, Zydus is also focusing on nephrology and interventional cardiology. The company has an established presence in cardiac stents through its acquisition of Nano Therapeutics’ assets and is exploring further collaborations. Additionally, it is developing dialyser membranes at its facility, expected to be commercialized in the next 18 months.
Global Medical Devices Market & Growth Potential
Patel described the medical devices sector as a “sunrise industry”, highlighting the huge demand-supply gap in India’s MedTech sector. He noted that the global medical device market, valued at over half a trillion dollars, includes segments like implants, equipment, consumables, and in-vitro diagnostics.
Reactions from Amplitude & PAI Partners
Olivier Jallabert, CEO and Founder of Amplitude Surgical, expressed excitement about joining Zydus, calling the acquisition a testament to the company’s 25+ years of successful growth from a national orthopaedic challenger to a European leader.
Stefano Drago, a Founding Partner of PAI Mid-Market Fund, highlighted Amplitude Surgical’s strong financial performance and strategic improvements, including:
- Streamlining operations
- Disposing of non-core businesses
- Developing a new state-of-the-art manufacturing facility in France
- Innovating surgical robotics
With this acquisition, Zydus strengthens its global MedTech presence, paving the way for long-term growth in specialized medical technologies.