Buyback and Acquisition Announcement: This pharma company shares BIG update for shareholders

Shares of Zydus Lifesciences surged around 6 per cent on Thursday after the drugmaker announced that its board will consider a share buyback proposal on May 19. The rally also came after the company unveiled plans to acquire US-based cancer drug company Assertio Holdings for $166.4 million.

Zydus Lifesciences shares climbed to an intraday high of Rs 997 during Thursday’s trade. The stock has gained nearly 8 per cent over the past month and around 10 per cent over the past one year. Over a longer period, the pharma stock has delivered returns of about 93 per cent in three years and nearly 61 per cent in five years.

Board to consider share buyback on May 19

In an exchange filing released on Wednesday, Zydus Lifesciences said its board of directors will meet on May 19 to approve the company’s January-March quarter results for FY26. Alongside the earnings announcement, the board will also consider a proposal for the buyback of fully paid-up equity shares.

The company said the proposal would be considered in line with applicable provisions under the Companies Act, SEBI Buy-back Regulations and other relevant laws.

This will be the company’s third buyback proposal in recent years. In 2024, Zydus completed a Rs 600 crore buyback through the tender route at a price of Rs 1,005 per share, which was at a premium of nearly 9 per cent to the prevailing market price on the record date. Before that, the company carried out a Rs 750 crore buyback in 2022.

Zydus to acquire US-based Assertio Holdings

Separately, Zydus Lifesciences announced that its subsidiary, Zydus Worldwide DMCC, has signed a definitive agreement to acquire Assertio Holdings in an all-cash deal valued at $166.4 million.

Under the agreement, Zydus will acquire all outstanding shares of Assertio at $23.50 per share in cash through its wholly-owned acquisition arm, Zara Merger Sub Inc.

Assertio focuses on speciality and oncology supportive-care therapies in the US market. Its key product is ROLVEDON (eflapegrastim-xnst), a long-acting biologic approved by the US Food and Drug Administration for preventing febrile neutropenia in adult cancer patients undergoing chemotherapy.

Deal gives Zydus entry into US oncology platform

The acquisition is expected to strengthen Zydus Lifesciences’ presence in the US speciality oncology market. Through the deal, the company will gain access to Assertio’s network of more than 170 community oncology accounts and its buy-and-bill commercial infrastructure.

The transaction will be executed through a tender offer followed by a merger. Zydus said the deal remains subject to customary closing conditions, including the tender of a majority of Assertio’s outstanding shares.

Following completion of the tender offer, Zydus will acquire all remaining shares at the same price through a second-step merger process.