Piramal join hands in a 1162 crore deal with UK based Mallinckrodt

A wholly-owned critical care subsidiary of Piramal Enterprises in UK has joined hands with Mallinckrodt, a UK-based pharmaceuticals company to acquire a portfolio of intrathecal spasticity and pain management drugs in an all-cash deal worth Rs 1162 crore.

The deal has commenced with an additional Rs 217.37 crore payable depending on the financial performance of the acquired assets over the next three years. The acquired portfolio will include Gablofen (baclofen), a severe spasticity management products, and two pain management products, which are currently under development.

While mentioning about its pharmaceutical business growth, Ajay Piramal, Chairman of Piramal Enterprises Ltd, said, “This would be our 7th pharma acquisition in the last two years, taking our investment for inorganic growth to Rs 3,000 crore across our pharmaceutical businesses. All these acquisitions are expected to be value-accretive and will improve our pharmaceutical segment’s growth and EBITDA in percentage and in absolute terms.“

The stock of Piramal Enterprises is trading above its 50 and 200 DMA of Rs 1656.05 and Rs 1590.58, respectively. The company has already given a return of 14 per cent in the last one month, outperforming the benchmark index Nifty which has gained 3.5 per cent during the same period.