India’s Zydus Lifesciences has announced a major strategic acquisition, acquiring an 85.6% stake in French medical devices manufacturer Amplitude Surgical for €256.8 million (approximately $280 million). This move marks a significant step in Zydus’s expansion into the global medical technology sector and diversification beyond its traditional pharmaceutical business.

Strategic Expansion into Medical Devices

Zydus Lifesciences, a key player in the pharmaceutical industry, has traditionally focused on manufacturing generic drugs. However, the company has been progressively expanding its portfolio to include specialty drugs and medical technology. The acquisition of Amplitude Surgical aligns with this strategy, strengthening its presence in the MedTech sector, particularly in orthopedics.

“In Amplitude Surgical, we see several medium-term and long-term growth opportunities with respect to portfolio, capabilities, manufacturing, and geographies,” said Sharvil Patel, Managing Director of Zydus Lifesciences.

Amplitude Surgical specializes in surgical technologies for lower-limb orthopedics, particularly in hip and knee procedures. The company has been steadily increasing its global footprint, operating in over 30 countries. As of June 2024, it employed 428 people and reported sales nearing €106 million.

High-Value Acquisition and Impact

The acquisition deal represents a significant 81% premium over Amplitude’s last traded share price. This underscores Zydus’s aggressive expansion strategy as the Indian pharmaceutical sector navigates challenges, including potential import tax plans by the U.S. government. The United States remains Zydus Lifesciences’ largest market, accounting for 47% of its total revenue, followed by India.

“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,” added Sharvil Patel, Managing Director of Zydus Lifesciences.

Amplitude Surgical’s Growth and Expertise

Amplitude Surgical has been a leading player in the European MedTech industry, offering innovative orthopedic solutions. The company’s focus on knee and hip prostheses has established it as a trusted provider for surgeons and healthcare facilities worldwide.

Supported by PAI Partners through its Mid-Market Fund, Amplitude Surgical has witnessed substantial growth over the past four years, driven by product innovation, international expansion, and manufacturing investments. In the fiscal year ending June 30, 2024, the company reported sales of €106 million and an EBITDA of €27.1 million. The first half of the fiscal year ending December 31, 2024, saw sales of €51.5 million, reflecting a 5% year-on-year growth, with an EBITDA margin of 25.4%.

“The Amplitude Surgical team and I are delighted to join Zydus. This acquisition by a worldwide healthcare leader is a testament to the successful development of the company over the last 25+ years, originally as a national orthopedics challenger and today as a European leader. We have demonstrated our resilience in periods of uncertainty while driving the transformation of the company, developing our commercial, industrial, and technological capabilities,”  said Olivier Jallabert, CEO and Founder of Amplitude Surgical.

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Regulatory Approvals and Transaction Details

The acquisition remains subject to customary regulatory approvals, including authorization by the French Minister of Economy under foreign investment control laws. Amplitude Surgical’s Board of Directors has welcomed the proposal and has set up an independent ad hoc committee to oversee the process. The tender offer agreement, signed on March 11, 2025, outlines that upon completion of the block acquisition, Zydus will file the tender offer with the French Financial Markets Authority (AMF).

BNP Paribas is serving as the exclusive financial advisor to Zydus, while Darrois Villey Maillot Brochier is acting as its legal counsel. Rothschild & Cie and Willkie Farr & Gallagher are advising PAI Partners, with Finexsi appointed as the independent expert.

Implications for the Medical Device Market

The global medical device industry is valued at over half a trillion dollars, with strong growth projections. The Government of India has recognized the sector as a sunrise industry, offering significant expansion opportunities.

With this acquisition, Zydus is positioning itself as a key player in the medical technology space, complementing its pharmaceutical expertise with high-quality MedTech solutions. The company’s subsidiary, Zydus MedTech, currently markets interventional cardiology products and aims to enhance its footprint in cutting-edge medical device solutions.

Stefano Drago, Founding Partner of PAI Mid-Market Fund, commented: “We are delighted to have supported Amplitude Surgical’s transformation into a European leader in lower-limb orthopedics, with a particular focus on innovation. Over the last four years, the company has reinforced its market position, delivered strong financial performance based on continuous product development, and successfully streamlined operational processes.”

The transaction is expected to be completed by June 2025, pending regulatory clearances. Following the completion, Olivier Jallabert will continue to be involved in Amplitude Surgical’s operations, ensuring a seamless transition and continuity in innovation and leadership.

With this move, Zydus Lifesciences not only strengthens its global footprint but also reinforces its commitment to advancing medical technology, ultimately improving patient outcomes worldwide.

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