: The UK-based wholly-owned Critical Care subsidiary of Piramal Enterprises Ltd has entered into an agreement to acquire five anesthesia and pain management injectable products from Janssen Pharmaceutica NV, in an all cash deal for an upfront payment of US$155 million, and up to an additional US$20 million.
The products to be acquired are five injectable versions of well-established Janssen brands, Sublimaze (fentanyl citrate), Sufenta (sufentanil citrate), Rapifen (alfentanil hydrochloride), Dipidolor (piritramide), and Hypnomidate (etomidate).
Piramal has agreed to acquire the brand names and all related IP as associated with the products, including the know-how to make both the active pharmaceutical ingredients and the finished dosage forms of the products.
The products are currently marketed in over 50 countries. The potential acquisition does not include the transfer of any manufacturing facilities or employees, Piramal Enterprises said in a statement.
As part of the transaction, Janssen will continue to supply finished dosage forms for up to three years and API for up to five years.
Janssen will continue to sell the products on behalf of Piramal until the marketing authorizations or relevant business relations are transferred to Piramal.
Janssen can earn up to an additional US$20 million if the product portfolio achieves certain agreed financial milestones over the next 30 months. The transaction is expected to close this week.
There is no need for any regulatory approvals.
Ajay Piramal, Chairman, Piramal Enterprises said, “Healthcare is an important focus area for us and we are strongly committed to growing this segment. The healthcare segment has grown at 17% CAGR over the last five years. This would be our 6th healthcare acquisition in the last two years, inorganically investing Rs. 1,800 crore across our Healthcare businesses."
"This acquisition is critical in shaping our product offerings, providing access to global markets and leveraging our existing capabilities. This acquisition is an important step in enabling Piramal Critical Care to start to address the global generic injectable hospital drug market which is greater than US$20 billion in size. At Piramal, we constantly focus on creating long term value for our shareholders,” Mr Piramal said.
Peter DeYoung, CEO – Piramal Critical Care said, "These injectable anesthesia and pain products are a terrific addition to our existing portfolio that will allow us to provide greater value to our customers leveraging our existing organisation and distribution partners."
"We remain committed to pursue additional value enhancing organic and inorganic opportunities in the future, ” he said.
