Piramal Enterprises gained 0.88% to Rs 1,871 at 11:40 IST on BSE after the company's UK based subsidiary acquired five anesthesia and pain management injectable products from Janssen Pharmaceutica NV.
The announcement was made before market hours today, 10 October 2016.Meanwhile, the BSE Sensex was up 77.01 points, or 0.27%, to 28,138.15.
On BSE, so far 1,508 shares were traded in the counter, compared with average daily volume of 23,447 shares in the past one quarter. The stock hit a high of Rs 1,880 and a low of Rs 1,865 so far during the day. The stock hit a record high of Rs 2,095 on 22 August 2016. The stock hit a 52-week low of Rs 835.05 on 3 March 2016. The stock had outperformed the market over the past one month till 7 October 2016, falling 0.85% compared with 2.99% fall in the Sensex. The scrip had also outperformed the market in past one quarter, advancing 21.39% as against Sensex's 3.16% rise.
The large-cap company has equity capital of Rs 34.51 crore. Face value per share is Rs 2.
Piramal Enterprises announced that its wholly owned Critical Care subsidiary in the UK 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 consideration of $155 million, and up to an additional $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). Janssen Pharmaceutica NV is a global pharma company.
Piramal has agreed to acquire the brand names and all related intellectual property (IP) as associated with the products, including the know-how to make both the active pharmaceutical ingredients (API) 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. 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 $20 million if the product portfolio achieves certain agreed financial milestones over the next 30 months. The transaction is expected to close this week. The completion of the transaction is not subject to any further regulatory approvals.
Commenting on the acquistion, Ajay Piramal, Chairman, Piramal Enterprises said, healthcare is an important focus area for Piramal Enterprises and the company is strongly committed to growing this segment. The healthcare segment has grown at 17% CAGR over the last five years. This would be company's 6th healthcare acquisition in the last two years, inorganically investing Rs 1800 crore across healthcare businesses. This acquisition is critical in shaping product offerings, providing access to global markets and leveraging 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 $20 billion in size, he added.
On consolidated basis, Piramal Enterprises' net profit rose 36.3% to Rs 230.93 crore on 26.7% growth in net sales to Rs 1761.05 crore in Q1 June 2016 over Q1 June 2015.
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Piramal Enterprises is one of India's large diversified companies with a presence in healthcare, healthcare information management and financial services.
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