Piramal Pharma Solutions, which is the contract development and manufacturing company of Piramal Enterprises, has acquired a solid oral dosage drug manufacturing facility of US-based G&W Laboratories for around $17.5 million. The deal — to acquire 100% equity stake in the entity that operates the facility and owns the related real estate — will help Piramal Pharma Solutions to expand product offerings by adding solid oral dosage capabilities in North America. Till now, solid oral dosage forms were all located in the UK and India, according to the company.

In fact, Piramal Pharma Solutions has operations in North America, Europe and Asia. It provides services such as drug discovery solutions, clinical trials, pharmaceutical development services and commercial supply of active pharmaceutical ingredients. The acquired plant at Sellersville in Pennsylvania covers 31.5 acres including dedicated manufacturing and packaging technologies for solid oral dosage forms, liquids and creams apart from quality control and microbiology infrastructure.

According to the company’s release, the site employs a highly knowledgeable and experienced workforce of around 100, with an average of 19 years of service with the site. The site has received certifications from the Food and Drug Administration and European Medicines Agency.

Also, in another development in the group, Piramal Enterprises Limited (PEL) sold 20% stake in its pharmaceutical business to US-based private equity player Carlyle for Rs 3,700 crore. This was done to accumulate money for future strategic investments —both organic and inorganic. In fact, PEL’s pharma business clocked revenue of Rs 5,419 crore in FY20, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of over Rs 1,400 crore.

What makes the G&W Lab deal work for Piramal

Piramal Pharma Solutions expects to further grow the Sellersville’s acquired plant to support development services as well as any Covid-19 management drug opportunities. In fact, many of Piramal Pharma Solution’s customers were looking for US-based manufacturing partners to expand and support their pipeline. This acquisition will surely strengthen the company’s ability to partner with them on best-in-class drug products, the company’s CEO Peter DeYoung had said.

As the company’s global footprint, Piramal Pharma Solutions now offers solid oral drug product development and commercial manufacturing in all its major geographies, which now addresses an unmet customer need.

As a part of the company’s global expansion plans, in January this year, Piramal Pharma Solutions announced to expand its Aurora facility in Canada with the addition of a new state-of-the-art wing dedicated to manufacturing Active Pharmaceutical Ingredients (APIs). The total investment is Canadian dollar 25 million. The Aurora facility will enhance the company’s offerings to customers with new addition that features 10,500 sq. ft. of new manufacturing space. The additional capacity will cater to increasing customer demand as well as support the facility’s ability to provide APIs and HPAPIs. The plant will also include filtration and drying capabilities that will enhance service offered by the company.

Piramal’s expansion in the U.S. comes as the U.S. government has made a big push to establish secure manufacturing and supply chains for pandemic-related drugs tied to Covid-19. The government in recent months has shelled out billions to help grow its national stockpile through targeted manufacturing deals, including helping flesh out supply of potential Covid-19 vaccines.

For Piramal Pharma Solutions, among its North American sites is an API facility in Riverview, Michigan. To expand its global presence, it acquired the company in 2016 for around $50 million and expanded it later by investing $10 million into new capacity for high-potency APIs. After the acquisition of the Michigan plant, the company invested $55 million in API capabilities worldwide.

Gain for G&W Laboratories

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  • subramanya says:

    was it asset purchase or equity purchase?

    • Hello Sir,
      The purchase was an equity purchase of close 100% stake taken in an all-cash deal.

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