Piramal Enterprises said that its subsidiary, Piramal Pharma (PPL), will acquire 100% stake in Hemmo Pharmaceuticals, an Indian manufacturer of peptide active pharmaceutical ingredients (APIs).
The acquisition has been done for an upfront consideration of Rs 775 crore and earn-outs linked to achievement of milestones. Consequent to this acquisition, Hemmo Pharma will become a wholly owned subsidiary of PPL. The company expects the deal to be completed within next 4 to 6 weeks.
Hemmo develops and manufactures peptide APIs and markets these to pharma companies in both domestic and global markets. Hemmo's portfolio covers 30+ APIs and custom synthesis services. Hemmo's turnover during financial years 2019-20 was Rs 85 crore. Its manufacturing facility is located at Turbhe, which is certified by the USFDA, EQDM, etc., while its R&D facility is located at Thane which focuses on process development. The company has strong expertise in both solution phase and solid phase synthesis of peptides.
The acquisition will add peptide API development and manufacturing capabilities of the company. Piramal's integrated drug substance and drug product offering will now include peptides. Peptide drugs are growing significantly in oncology and metabolic therapies, the company said.
Peter DeYoung, CEO, Pharma Solutions, Piramal Pharma, said, "During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity. The growth in therapies for rare diseases and orphan drugs has also increased the need for peptides. This acquisition enhances our ability to provide integrated solutions that our customers need and further expands ways in which we can help reduce the burden of disease on patients."
Piramal Enterprises is one of India's large diversified companies, with presence in financial services and pharmaceuticals.
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On a consolidated basis, Piramal Enterprises' net profit jumped 10.4% to Rs 799.39 crore on 3.1% decline in net sales at Rs 3,168.61 crore in Q3 December 2020 over Q3 December 2019.
The scrip shed 0.52% to Rs 1755.70 on the BSE.
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