Piramal Enterprises to buy 5 brands from Janssen Pharmaceutica for nearly Rs 1,030 cr

With an aim to boost its healthcare business, Piramal Enterprises announced on Monday that its UK-based unit Piramal Critical Care will acquire five anesthesia and pain management injectable products from Janssen Pharmaceutica NV for an upfront consideration of $155 million (nearly Rs 1,031.2  crore) and up to an additional $20 million (nearly Rs 133.1 crore). 

The products to be acquired are five injectable versions of well-established Janssen brands namely- Sublimase (fentanyl citrate), Sufenta (sufentanil citrate), Rapifen (alfentanil hydrochloride), Dipidolor (piritramide), and Hypnomidate (etomidate) (the “Products”). The Products are currently marketed in over 50 countries. 

Piramal Critical Care is an wholly-owned subsidiary of Piramal Enterprises and its acquisition of the products from Janssen Pharamceutica will take place in an all cash deal.  

“Healthcare is an important focus area for Piramal Enterprises and we are strongly committed to growing this segment. The healthcare segment has grown at 17% compounded annual growth rate (CAGR) over the last five years. This would be our 6th 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," said Piramal Enterprises chairman Ajay Piramal in a filing to the BSE on Monday.

Piramal has agreed to acquire the brand names and all related IP as associated with the Products, including the know-how to make both the active pharmaceutical ingredients (“API”) and the finished dosage forms of the Products, the statement said. 

The potential acquisition does not include the transfer of any manufacturing facilities or employees, it further added.

"As part of the transaction, Janssen will continue to supply finished dosage forms for up to three years and API for up to five years. Janssen will continue to sell the products on behalf of Piramal until the marketing authorisations or relevant business relations are transferred to Piramal," cited the statement. 

With the acquisition of products from Janssen, Piramal Critical Care aims to increase the value of the acquired product portfolio through its team's focused sales and marketing efforts. 

“We are currently the third largest player in the Inhalation Anesthesia market globally and continue to grow in that niche segment. These injectable anesthesia and pain products are a terrific addition to our existing portfolio that will allow us to provide greater value to our customers leveraging our existing organisation and distribution partners," Piramal Critical Care chief executive office Peter DeYoung said in  a statement. 

"Four of the acquired products are controlled substances which have higher barriers to entry. Once the business is fully transitioned to us, our customers and business partners will benefit from our broader product basket, and in turn, we can grow the value of the acquired product portfolio through our team’s focused sales and marketing efforts," DeYoung added. 

At 10:15 hours, the stock of Piramal Enterprises was trading up 0.84% or Rs 15.55 at Rs 1,870.25 on the BSE.

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