Piramal Healthcare has acquired New York-based Minrad International, a manufacturer of generic inhalation anaesthetic drugs for $40 million (Rs195 crore), to become one among the top three players in the $1-billion global inhalation anaesthetics market.
Post acquisition, Minrad will become a newly incorporated wholly-owned subsidiary of Piramal and it will be de-listed from US stock exchanges, Ajay Piramal, chairman, Piramal Healthcare said.
The $25-million Minrad has two plants employing about 90 people and sells three products — isoflourane,enflurane and sevoflurane — in this segment. Piramal Healthcare is a leading producer of the same category drugs — halothane and isoflurane, which it inherited from the acquisition of Rhodia of UK in December 2004. The company expects $65 million revenues by 2009-10 from the inhalation anaesthetics business, he said.
The acquisition will make Piramal the third largest player in the world for inhalation anaesthetics after Abbott Laboratories and Baxter, said Ajay Piramal. As per the agreement, the stockholders of Minrad will receive $0.12 a share in cash and Piramal will also acquire Minrad's 8 per cent senior secured convertible notes from the note holders. The acquisition is expected to close by February-March 2009. Piramal has also funded $12 million as working capital to the cash-starved company, said Ajay Piramal.