Piramal Enterprises has agreed to acquire five injectable anesthesia and pain management products of Janssen Pharmaceutica for about $175 million or Rs 1,164 crore.
Mumbai-headquartered Piramal Enterprises will pay $155 million ( Rs 1,031crore) upfront in cash and the rest on meeting certain sales-related milestones, the company said in a statement issued on Monday.
The transaction, which is expected to close this week, marks the Ajay Piramal-led company’s sixth deal in the healthcare space in the past two years. It is seen bolstering its portfolio of critical care drugs.
Belgium-headquartered Janssen’s drugs sold to Piramal are marketed in over 50 countries.
Piramal Enterprises has agreed to acquire the brand names and all related IPs associated with the products, including the know-how to make both the active pharmaceutical ingredients and finished dosage forms.
Janssen to Supply APIs for Up to 5 Yrs
The drugs are injectable versions of well-established Janssen brands, Sublimaze, Sufenta, Rapifen, Dipidolor and Hypnomidate.
Piramal noted the deal does not include any manufacturing capabilities or employees. Under the agreement, Janssen, the pharmaceutical arm of Johnson & Johnson, will continue to supply finished dosage forms for up to three years and active pharmaceutical ingredients (APIs) for up to five years.
The global drugmaker will continue to sell the products on behalf of Piramal until the marketing authorisations or relevant business relations are transferred to Piramal.Janssen will earn up to an additional $20 million if the product portfolio achieves certain agreed financial milestones over the next 30 months.
“This acquisition is critical in shaping our product offerings, providing access to global markets and leveraging our existing capabilities,” said Ajay Piramal, chairman of Piramal Enterprises.
“This acquisition is an important step in enabling Piramal Critical Care to start addressing the global generic injectable hospital drug market, which is greater than $20 billion in size.”
Piramal Enterprises is No.3 in the global inhalation anesthesia market.
The company said the addition of Janssen’s products will help leverage greater value for customers. India’s healthcare segment, where Piramal Enterprises has invested about Rs 1,800 crore in the last two years for inorganic expansion, is believed to have grown at a CAGR of 17 per cent over the last five years.
Peter DeYoung, chief executive of Piramal Critical Care, said four of the acquired products are controlled substances which have higher barriers to entry.
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Source: Economic Times
