Piramal Enterprises Buys 5 Brands For Up To $175 Million From Janssen
Piramal Enterprises buys its way into the global injectable drug market.
Piramal Enterprises on Monday said its UK subsidiary will acquire five anaesthesia and pain management injectable products from Janssen Pharmaceutica NV. This all-cash deal has an upfront consideration of $155 million which can go up by an additional $20 million.
The additional $20 million is subject to Janssen Pharmaceutica, the pharmaceutical division of Johnson & Johnson if the product portfolio achieves certain mutually agreed financial milestones over the next 30 months.
The transaction is expected to close this week, it added.
Piramal Critical Care, will acquire the brand names and all related IP as associated with these five products, including the know-how to make both the active pharmaceutical ingredients (API) and the finished dosage forms of the products, which are currently sold across 50 countries.
The potential acquisition does not include the transfer of any manufacturing facilities or employees. 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," according to the press release.
Janssen will continue to sell the products on behalf of Piramal until the marketing authorisations or relevant business relations are transferred to Piramal.
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 per cent CAGR over the last five years. 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 start to address the global generic injectable hospital drug market which is greater than USD 20 billion in size.Ajay Piramal, Chairman, Piramal Enterprises
The completion of the transaction is not subject to any further regulatory approvals.