Piramal Enterprises to buy US firm for $53 mn

Piramal Enterprises on Tuesday announced it has entered into an agreement to purchase the entire stake in US-based contract development and manufacturing organisation (CDMO) Ash Stevens for $42.95 million and an earn-out consideration capped at $10 million.

The company said in a stock exchange filing here that its "wholly-owned US subsidiary has entered into an agreement to acquire 100 per cent stake in Ash Stevens Inc. in an all-cash deal for a total consideration of USD 42.95 million plus an earn-out consideration capped at USD 10 million, subject to achievement of certain EBITDA targets, payable over next six months."

The transaction is expected to be completed by the end of August.

"The acquisition of Ash Stevens fits well with our strategy to build an asset platform that offers value to our partners and collaborators," said Vivek Sharma, chief executive of Piramal Pharma Solutions.

"Currently, around 25 per cent of the molecules in clinical development are potent. Our clients are looking for reliable partners that can assist them in advancing these programmes forward.

"We expect this acquisition to also be synergistic with our Antibody Drug Conjugates (ADCs) and injectable business. We can now fulfil client requirements for a single source of supply for both high potent APIs (active pharmaceutical ingredients) and drug products," he added.

"We look forward to working with the Piramal leadership and management team, to develop API solutions that benefit customers and improve the lives of patients," Ash Stevens CEO Stephen Munk said.

Ash Stevens is a full service CDMO focused on development and manufacturing of high potency active pharmaceutical ingredients.

--IANS

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