PEL gains after Piramal Pharma acquires stake in Hyderabad-based CDMO

Piramal Enterprises advanced 3.04% to Rs 2527.90 after Piramal Pharma (PPL) announced an investment of Rs 101.77 crore in Yapan Bio (Hyderabad), a CDMO providing expertise in biologics and vaccines.

The investment would aid in augmenting the capabilities of PPL's contract development and manufacturing organization (CDMO) business, Piramal Pharma Solutions (PPS).

PPL holds 27.78% equity stake in Yapan Bio as a result of this investment.

Yapan Bio provides process development, scale-up, and cGMP compliant manufacturing of vaccines and biologics/bio-therapeutics, including high containment product classes (up to BSL-2+), recombinant vaccines, RNA/DNA vaccines, gene therapies, monoclonal antibodies, therapeutic proteins, and other complex biologics.

Yapan's FY21 turnover was Rs 12.4 crore. The company has already earned revenues of Rs 11.8 crore for H1 FY22 and is poised for fast growth in response to strong market demand.

The investment in Yapan Bio allows PPS to broaden its service offerings in the fast-growing biologics CDMO space. Biologics capabilities can be synergistic with the company's anti-body drug conjugation capabilities; specifically, for customers who prefer the speed and simplicity benefits of an integrated program that involves development, manufacturing, conjugation, and fill finish.

PPS currently offers integrated payload, conjugation, fill finish services, and the addition of anti-body capabilities enhances that offering.

Many pharma innovator companies are looking for CDMOs to support their biologics development and manufacturing requirements. PPS expects that adding these capabilities and expertise will enable the company to further enhance its offerings in this attractive, fast-track growth sector.

Nandini Piramal, chairperson, Piramal Pharma, said, The expertise found at Yapan will help Piramal provide existing customers with wider capabilities for developing and manufacturing large molecules.

Peter DeYoung, CEO, Pharma Solutions, Piramal Pharma, said, During the past decade, biologics and their accompanying development services are the fastest growing segments of the CDMO market.

This investment, coupled with the market-leading capabilities of our Grangemouth, UK site in antibody drug conjugations and our sterile fill/finish capabilities in Lexington, USA, demonstrates our commitment to growing our service offerings in the large molecule CDMO space.

Piramal Pharma offers a portfolio of differentiated products and services through end-to-end manufacturing capabilities across 15 global facilities and a global distribution network in over 100 countries. PPL includes Piramal Pharma Solutions (PPS), an integrated contract development and manufacturing organization; Piramal Critical Care (PCC), a complex hospital generics business, and the India consumer healthcare business, selling over-the-counter products.

Piramal Enterprises (PEL) has diversified business interests in financial services and pharmaceuticals.

The company reported 32% fall in consolidated net profit to Rs 426 crore on a 6% decline in net sales to Rs 3,106 crore in Q2 FY22 over Q2 FY21.

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