Companies

Piramal buys Coldstream Labs for Rs 180 cr

P T Jyothi Datta Mumbai | Updated on January 24, 2018 Published on January 17, 2015

piramal

Piramal Enterprises Ltd has invested $30.65 million (about Rs 180 crore) towards acquiring Coldstream Laboratories Inc, a speciality pharmaceutical contract manufacturer.

The transaction was done through Piramal Enterprises Ltd’s (PEL) wholly owned subsidiary in the United States, in an all cash deal, a note from the company said.

Of the total amount invested, about $5.65 million would be towards the purchase of the facility building which is currently leased to Coldstream, while the rest would be towards purchase of 100 per cent of the company’s shares, it added.

Coldstream is a contract development and manufacturing organisation focused on the development and manufacturing of sterile injectable products.

Founded in 2007, it is majority owned by University of Kentucky Research Foundation (an affiliate of the University of Kentucky), the note said.

Coldstream is a specialty pharmaceutical contract manufacturer with an emphasis on clinical trials to commercial-scale manufacturing of sterile liquid and lyophilised parenterals and injectables. It has developed differentiated expertise to formulate and manufacture high potency and cytotoxic compounds, including Antibody Drug Conjugates (ADCs).

The company operates from an FDA approved facility located in Lexington, Kentucky, USA. Revenues of Coldstream over the last three years are about $14 million (2014E) and it employs about 91 people.

Vivek Sharma, Chief Executive of Piramal Enterprises' Pharma Solutions business', said: “Coldstream is a very high quality operation and has been able to build significant customer relationships and track record for sterile products. We see this as a great platform for growth in our pharma solutions business. This acquisition allows PEL to move further into the injectable market segment and should have strong synergy with our existing pharma solutions business. Our strong capabilities in sterile product development and in ADC product segment will allow us to offer an integrated solution to our customers.”

Piramal Enterprises has been flush with funds after it sold its domestic formulations business for Rs 17,000 crore to Abbott, followed by the sale of its diagnostics business for over Rs 600 crore to Super Religare Laboratories — both in 2010.

Published on January 17, 2015

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