Piramal Enterprises to buy five injectable products from Janssen NV
10 Oct 2016
Ajay Piramal-led Piramal Enterprises today struck a deal to buy five injectable anaesthesia and pain management products from Janssen Pharmaceutica NV in a deal valued at $175 million.
Through its UK Critical Care subsidiary Piramal Enterprises will buy five injectable drugs, Sublimaze, Sufenta, Rapifen, Dipidolor, and Hypnomidate for an upfront payment of $155 million, and an additional $20 million on meeting certain sales-related milestones over the next 30 months.
Piramal will get the brand names and all related IP as associated with the acquired products, which are currently marketed in over 50 countries, including the know-how to make both the active pharmaceutical ingredients (API) and the finished dosage forms of the products,
The deal however does not include the transfer of any manufacturing facilities or employees.
Janssen will continue to supply finished dosage forms for up to three years and API for up to five years and will continue to sell the products on behalf of Piramal until the deal closes - expected this week.
Ajay Piramal, chairman of Piramal Enterprises said that the deal will allow Piramal Critical Care to begin to address the global $20 billion generic injectable hospital drug market.
The Mumbai-based company has recently gone on an acquisition spree and has spent Rs1,800 crore in six acquisitions in the last two years.
Its recent purchases include buying four brands from Pfizer for Rs110 crore and a US-based contract development and manufacturing organization Ash Stevens Inc for $42.95 million plus an earn-out consideration up to $10 million.
