 "Piramal Enterprises buys US-based Ash Stevens to tap high potency APIs market")
Piramal Enterprises Limited has acquired Ash Stevens Inc, a US based contract development and manufacturing organisation (CDMO), in an all cash deal for a total consideration of $ 42.95 million (about Rs 286 crores) plus an earn-out consideration capped at $ 10 million, subject to achievement of certain EBITDA targets, payable over the next six months. This potential transaction is expected to be completed by end of August.
Founded in 1962 and headquartered in Riverview (Michigan), Ash Stevens is a full service CDMO focused on development and manufacturing of high potency active pharmaceutical ingredients (APIs). The company primarily operates from a FDA approved commercial manufacturing facility located in Riverview. It also owns another development facility in Detroit, Michigan. Ash Stevens has over five decades of experience in working with difficult-to-manufacture high potency APIs, including high potency anti-cancer agents. This acquisition adds niche potent molecule manufacturing capabilities to the portfolio of services offered by Piramal Enterprises’ pharma solutions business.
Vivek Sharma, CEO of PEL’s pharma solutions business, commented, “High potency API (HPAPI) is one of the fastest growing segments in the pharmaceutical sector and more than 50 percent of the HPAPIs are anti-cancer drugs. Ash Stevens will add high potency capabilities to the services we offer our customers. Ash Stevens is a well-respected name in this field and will allow us to drive significant synergies.”
Ash Stevens has 12 FDA approvals for innovator small molecule APIs and has a pipeline of development products. The Riverview facility has approvals from US, EU, Australia, Japan, Korea, Mexico regulatory agencies.
Ash Stevens had revenue of approximately $ 18.3 million in FY15 (twelve months ending September 30).
Dr Stephen Munk, CEO of Ash Stevens Inc, said, “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. The commitment that Piramal has shown towards growing its healthcare businesses, coupled with the complementary capabilities that our two firms have, makes this an exciting time for Ash Stevens and our employees. We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives.”
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