SeQuent Scientific Ltd., a leading Indian player in the global animal health industry, has achieved a key milestone in its strategic growth journey by securing approvals from both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for its proposed merger with Hyderabad-based Viyash Life Sciences. The company has now filed for approval with the National Company Law Tribunal (NCLT), taking a significant step forward in the consolidation of its business operations.

Strategic Rationale Behind the SeQuent–Viyash Merger

The merger aims to bring together two complementary and high-performing verticals—Animal Health and a world-class API (Active Pharmaceutical Ingredients) business. According to the terms of the deal, Viyash shareholders will receive 56 SeQuent shares for every 100 shares they hold, facilitating a smooth transition in shareholding structure and strategic alignment.

The combined entity will unlock synergies that go beyond financial benefits:

• Access to over 150 countries through a global distribution network.

• A five-fold increase in R&D talent, significantly boosting innovation capabilities.

• A nine-fold expansion in USFDA-approved manufacturing capacity, enabling scale and regulatory compliance.

This merger isn’t just an integration of resources but a repositioning of SeQuent as a global powerhouse in the animal health and pharmaceutical segments.

Carlyle’s Role in the Merger

The merger is being executed under the guidance and backing of Carlyle Group, a global private equity firm that holds a 53% stake in SeQuent and also has majority ownership in privately held Viyash. Carlyle’s involvement provides strategic and financial assurance to both the market and stakeholders, ensuring that the combined entity benefits from:

• Capital infusion where necessary

• Operational efficiencies

• Long-term strategic planning

This consolidated backing further highlights the confidence in the growth potential of the unified business.

Business Strengths of SeQuent and Viyash

SeQuent Scientific is known for its strong presence in animal health, with operations spanning 90+ countries and well-established footprints across Europe, Latin America, and India. The company focuses on both formulations and active ingredients, making it a vertically integrated player.

Viyash Life Sciences, on the other hand, has carved a niche in the API and R&D space. It is known for:

• High-end research capabilities

• Established business relationships with leading pharmaceutical companies

• USFDA-approved facilities

This merger creates a balanced business model with both B2B and B2C capabilities, research orientation, and compliance with global regulatory standards.

Financial Highlights and Business Performance

Q4 FY25 Performance: Strong Finish

SeQuent ended the financial year FY25 on a high note, with the following highlights in Q4 FY25:

• Revenue rose by 11.2% YoY to ₹4,017 million

• Adjusted EBITDA increased by 38.7% to ₹569 million

• EBITDA margin improved by 280 basis points to 14.2%

This performance was driven by:

• A better product mix

• New product launches

• Improved operational efficiencies

These results underscore SeQuent’s ability to deliver growth while improving profitability, a key indicator of sustainable business health.

Full-Year FY25 Performance: Robust Growth

For the full year:

• Revenue stood at ₹15,514 million, marking a 13.3% increase YoY

• Adjusted EBITDA almost doubled to ₹1,993 million, up 86.6%

• EBITDA margins expanded by 500 basis points to 12.8%

These figures reflect the successful execution of SeQuent’s strategic plans, including supply chain optimization, market penetration, and a focus on high-margin products.

Consolidated Financials of the Merged Entity

When considering the combined business performance of SeQuent and Viyash in Q4 FY25, the numbers are even more promising:

• Consolidated revenues reached ₹7,725 million, up 13.2% YoY

• Adjusted EBITDA surged by 63.2% to ₹1,222 million

• EBITDA margins rose by 485 basis points to 15.8%

This consolidated performance illustrates the potential impact of the merger, particularly in:

• Operational scale

• Cost efficiency

• Improved profitability

The combined capabilities in manufacturing, R&D, and global distribution are clearly reflecting in financial numbers even before the legal finalization of the merger.

Market Outlook and Future Potential

The merger sets the stage for long-term strategic benefits, including:

• A stronger operating backbone with scalable infrastructure.

• Expanded global customer base and diversified revenue streams.

• Improved research-to-market cycle, enabling faster product launches.

• Reinforced regulatory and compliance capabilities, crucial for entering regulated markets like the US and EU.

According to Rajaram Narayanan, Managing Director of SeQuent, “FY 2024–25 marks a pivotal year for us... With Viyash joining us, we are poised to become a significantly stronger business—2X in scale, capability, and opportunity.”

Impact on Shareholders and Future Roadmap

Shareholders of Viyash will directly benefit through equity in a publicly listed and fast-growing company. This also opens up opportunities for enhanced value creation, liquidity, and participation in a larger ecosystem.

The next milestone in the process is approval from NCLT, post which integration will begin in full swing. The merged entity is expected to launch joint R&D projects, expand into new markets, and execute cost rationalization strategies.

Conclusion

The SeQuent–Viyash merger represents a well-planned strategic consolidation designed to capture growth in the global pharmaceutical and animal health sectors. Backed by Carlyle, supported by strong financials, and validated by regulatory approvals, the merger sets a new benchmark in India’s healthcare manufacturing sector.

With enhanced R&D, expanded manufacturing capabilities, and robust financial performance, the merged entity is well-poised to drive global expansion, innovation, and profitability in the years to come.

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