Piramal Enterprises said on Monday that its UK subsidiary Critical Care entered an agreement to acquire a portfolio of intrathecal spasticity and pain management drugs from Mallinckrodt LLC in an all-cash deal for $171 million.
Piramal Group eyes stressed assets of real estate developers
The UK-based Mallinckrodt Pharmaceuticals produces speciality pharmaceutical products, including generic drugs and imaging agents.
The transaction includes Piramal Enterprises paying an additional $32 million depending on the financial performance of the acquired assets over the next three years.
The portfolio acquired 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. Gablofen has also been approved for launch in eight European markets. Gablofen is the only intrathecal baclofen drug available in vials and pre-filled syringes.
The Mumbai-based company said in a regulatory filing with the BSE that in the 12 months ending September 30, 2016, the acquired portfolio generated revenues of $44.6 million.
Commenting on the acquisition, Ajay Piramal, chairman of Piramal Enterprises, said: "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."
Meanwhile, in early January, Piramal Enterprises announced its plans to enter the retail housing finance market. Piramal Finance already has a presence in wholesale finance, catering to the entire spectrum of financing needs across real estate (both residential and commercial) as well as non-real estate (operating infrastructure and other sectors) sectors with a current overall loan book extending to Rs 19,170 crore.
In addition, the company also acts in a fiduciary capacity managing external funds with assets under management of Rs 7,315 crore, including alliances with leading global investors.
On Monday, shares of Piramal Enterprises were trading 0.25 percent higher at Rs 1,725 on BSE at around 3.30 pm.
