Piramal buys intrathecal spasticity drug from UK's Mallinckrodt
Piramal Enterprises would buy a drug portfolio for Rs 1,160 crore from UK-based Mallinckrodt LLC for treating spasticity (muscle disorder) and pain management.
Company chairman Ajay Piramal said the deal will help in listing Piramal's financial services unit and pharmaceuticals business.
This was an all-cash deal worth $171 million, executed by the company's UK subsidiary Piramal Critical Care.
Piramal acquires drug portfolio for Rs. 1160 crore
Gablofen - The intrathecal drug
Piramal has recently acquired Gablofen (baclofen) which is a spasticity management product, currently marketed only in the US, and two pain-management products which are under development at the moment. Gablofen is used as a skeletal muscle relaxant.
What does the deal mean for Piramal?
The company has got the approval to market the drug in eight European countries.
This is Piramal's seventh acquisition deal in the last two years. With this deal, their investments in inorganic growth across the pharma business would reach Rs. 3,000crore.
Piramal said the products are niche, difficult to produce and command high margins.
Gablofen is one-of-its-kind drug available in vials and pre-filled syringes.
Love Business news?
Stay updated with the latest happenings.
Piramal Enterprise's chairman Ajay Piramal's statement
"We are moving up the value chain by acquiring global businesses in niche capabilities and expanding manufacturing capacities in niche areas," said Piramal.
Mastercard eyes on tapping India's e-commerce growth
Exxon Mobil profits dive by 51%