Piramal to acquire drugs from UK's Mallinckrodt for Rs 1,162 crore
Piramal Enterprises UK-based subsidiary Piramal Critical Care has entered into an agreement with Mallinckrodt for acquiring the drugs.
Piramal Enterprises on Monday said it will acquire a portfolio of intrathecal spasticity and pain management drugs from UK-based Mallinckrodt for $171 million (around Rs 1,162 crore) in an all cash deal.
The company's UK-based wholly-owned subsidiary Piramal Critical Care has entered into an agreement with Mallinckrodt for acquiring the drugs and may also pay an additional $32 million depending on financial performance of the acquired assets over the next three years.
The acquired portfolio includes Gablofen (baclofen), a severe spasticity management product, which is currently marketed in the US and two pain management products, which are currently under development.
"We continue to invest in the growth of our pharmaceutical businesses. This would be our 7th pharma acquisition in the last two years, taking our investment for inorganic growth to Rs 3,000 crore across our pharmaceutical businesses," Piramal Enterprises Chairman Ajay Piramal said in a statement.
All these acquisitions are expected to be value accretive and will improve the company's pharmaceutical segment's growth, he added.
"This transaction is a step further in our strategy to make investments, in both internal developments and acquisitions, to expand our presence in the global generic hospital drug market, which is greater than $20 billion in size," Pirmal said.
Through this strategy, the company's focus continues to be the creation of long-term value for shareholders, he added.
Completion of the transaction is subject to HSR review in the US and certain other conditions, the Mumbai-based firm said.
"This acquisition provides Piramal a leadership position within the intrathecal spasticity segment and the opportunity to access the intrathecal pain management market, which is complementary to our critical care focus, and leverage our current operations and capabilities, especially in the US, "Piramal Critical Care CEO Peter DeYoung said.
These acquisitions add branded products that are in attractive niches with barriers to entry and limited competition, he added.
"Along with our inhalation anesthesia products, we are building an exciting portfolio to offer our customers and a substantially more diversified revenue base," DeYoung said.
Piramal Enterprises Ltd (PEL) is the flagship company of Piramal Group and has a presence in the healthcare and financial services verticals.
On Monday, the stock of Piramal Enterprises closed up 0.15% or Rs 2.55 at Rs 1,723.25 on the BSE.
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