Piramal Enterprises injects itself with Ash Stevens' APIs

Piramal Enterprises(PEL) has acquired Ash Stevens Inc., USA based Contract Development and Manufacturing Organisation (CDMO) for high potency APIs. The company has acquired the new entity in a cash deal for a total consideration of USD 42.95 million (Rs 287 crore). In addition, PEL will pay an earn out capped at USD 10 million (Rs 67 crore) towards payment, provided the business achieves certain financial goals.  The transaction is expected to be completed by end of August.

Ash Stevens has 12 FDA approvals for innovator small molecule APIs and has many development products in the pipeline. The company’s facility has approvals from regulatory bodies in US, EU, Australia, Japan, Korea, Mexico.On the financial front, Ash Stevens' revenue stands at USD 18.3 million (Rs 122 crore) as of FY15.

Ash Stevens is one of the leaders in HPAPI manufacture and has an impeccable safety record of working with high potency anti-cancer agents and other highly potent therapeutics.

The share price of Piramal Enterprises has increased by 3.93 per cent on bourses in early trades; and is trading at Rs 1810.15 on an intraday basis.

PEL is focused on pharmaceutical business, financial services and information management. The pharmaceutical segment includes pharma solutions, critical care, OTC and ophthalmology, and life sciences.