Mumbai-headquartered Piramal Enterprises entered into an agreement with Janssen Pharmaceutica NV to acquire its five injectable products related to anesthesia and pain management in about $175 million (INR 1,164 crore).
Janssen will get an all-cash upfront payment of $155 million plus an additional amount of up to $20 million. The transaction is expected to be completed by this week. Piramal signed the agreement through its wholly-owned subsidiary in the UK Critical Care.
The products to be acquired by Piramal of brand Janssen are- Sublimaze (fentanyl citrate), Sufenta (sufentanil citrate), Rapifen (alfentanil hydrochloride), Dipidolor (piritramide), and Hypnomidate (etomidate). Currently, the products are being marketed in over 50 countries.
According to the agreement, Piramal will acquire the brand names and all intellectual property (IP) related to the product. Janssen will keep on selling the products on behalf of Piramal till the related marketing authorizations and business relations are transferred to Piramal. Janssen will keep on supplying finished dosage forms for up to three years and active pharmaceutical ingredients (API) for up to five years.
Ajay Piramal, Chairman, Piramal Enterprises said, “This would be our sixth healthcare acquisition in the last two years, inorganically investing Rs. 1,800 crore across our healthcare businesses. This acquisition is critical in shaping our product offerings, providing access to global markets and leveraging our existing capabilities. This acquisition is an important step in enabling Piramal Critical Care to address the global generic injectable hospital drug market, which is greater than $20 billion in size”.
Piramal entered into the healthcare niche in 1988 and became one of the renowned names in the pharmaceutical industry.
Last year, it acquired University of Kentucky controlled, Coldstream Laboratories by an all-cash payment of $30.65 million. It is a contract development and manufacturing organization (CDMO). The deal was aimed to enhance its existing infrastructure for the development of sterile injectables. This acquisition provided Piramal its tenth manufacturing facility worldwide- Lexington, Kentucky.
Last month, it had acquired U.S. based CDMO- Ash Stevens in an all-cash of deal of $42.95 million plus an earn-out consideration capped at $10 million.
Earlier this year, Piramal has also acquired Pfizer’s four brands -child nutrition supplement Ferradol, medicated soap Neko, pain reliever Sloan and cough syrup, Waterbury’s compound for INR110 crore. It also acquired the brand Little, the sellers of baby accessories in India. In December 2015, they acquired five MSD pharmaceuticals product of pain relief category for INR 95 crore. These acquisitions were aimed to expand the company’s consumer product business.
Piramal holds third position in the global inhalation anesthesia market and its latest addition of Janssen products will bolster its critical care drugs portfolio. Over the last five years, Piramal is believed to have grown at 17% CAGR (compound annual growth rate).