Piramal Pharma Ltd, a subsidiary of the company, has entered into an agreement to acquire a 100 per cent stake in Hemmo Pharmaceuticals for an upfront consideration of Rs 775 crore and earn-outs linked to the achievement of milestones, Piramal Enterprises said in a regulatory filing on Wednesday.
Consequent to the acquisition, Hemmo Pharmaceuticals Pvt Ltd would become a wholly-owned subsidiary of Piramal Pharma Ltd (PPL), it added.
This acquisition marks PPL's contract development and manufacturing organisation Piramal Pharma Solutions' (PPS') foray into the development and manufacturing of peptide APIs (Active Pharmaceutical Ingredient), a capability that complements PPS' existing service offering, Piramal Pharma said in a statement.
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, it added.
"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", Piramal Pharma Ltd Chairperson Nandini Piramal said.
This is the third pharma acquisition this fiscal year, and yet another example of the implementation of our profitable growth strategy, she added.
On the development, Hemmo Promoter and Managing Director Madhu Utamsingh said: "We are very excited about this transaction and believe PPS is an ideal partner to take the business through its next phase of growth".
Shares of Piramal Enterprises Ltd closed at Rs 1,752 per scrip on BSE, down 0.73 per cent from its previous close.
