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Piramal Pharma Solutions (PPS), the contract development and manufacturing organisation of Piramal Pharma Ltd, has entered into an agreement to acquire Hemmo Pharmaceuticals Pvt Ltd for an upfront consideration of ₹775 crore. The deal also includes payments based on achievements of certain milestones.
Hemmo is a pure-play synthetic peptide API manufacturer in the global marketplace.
This acquisition marks PPS’ foray into the development and manufacturing of peptide Active Pharmaceutical Ingredient (APIs), a capability that complements its existing service offering. With the addition of Hemmo’s capabilities, PPS will gain access to the growing peptide API market and enhance its ability to offer integrated services to its customers globally, the company said in a statement.
“Hemmo has demonstrated excellence and a great quality track record with a differentiated and hard to replicate capability. Once welcomed into the PPL family, it will be another example of a distinctive offering to attract and delight customers. This is the third pharma acquisition this fiscal year, and yet another example of the implementation of our profitable growth strategy,” Nandini Piramal, Chairperson, of Piramal Pharma said.
The acquisition is expected to add more than 250 employees to PPS, including several PhD scientists and a quality team of more than 60 personnel. The acquisition agreement is subject to customary regulatory closing conditions.
Hemmo has R&D capabilities and a world-class GMP manufacturing facility that has been inspected and deemed compliant by US, EU and Asian regulatory agencies. The company has strong expertise in both solution phase and solid phase synthesis of peptides.
Peter DeYoung, CEO, Pharma Solutions, Piramal Pharma said: “During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity. The growth in therapies for rare diseases and orphan drugs has also increased the need for peptides. This acquisition enhances our ability to provide integrated solutions that our customers need and further expands ways in which we can help reduce the burden of disease on patients”.
Kotak Mahindra Capital Company Ltd was the financial adviser and Economic Laws Practice was the legal advisers to PPL. Torreya Partners India was the financial adviser and Desai & Diwanji, Mumbai Office, the legal advisers to Hemmo Pharmaceuticals and selling shareholders.
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