Piramal Enterprises Ltd, has agreed to acquire a portfolio of intrathecal spasticity and pain management drugs from UK-based Mallinckrodt LLC for INR 1,162 crore (USD 171 million) in an all cash deal.
Piramal Critical Care, the company’s UK-based wholly-owned subsidiary has entered into an agreement with Mallinckrodt for acquiring the drugs. The healthcare company may also pay an additional USD 32 million depending on the financial performance of the acquired assets over the period of next three years.
The acquired portfolio includes a severe spasticity management product called Gablofen (baclofen), is currently marketed in the US and two other pain management products that are yet to be completely developed.
“We continue to invest in the growth of our pharmaceutical businesses. This would be our 7th pharma acquisition in the last two years, taking our investment for inorganic growth to Rs 3,000 crore across our pharmaceutical businesses,” said Ajay Piramal, Chairman Piramal Enterprises Ltd in a statement.
All these acquisitions are expected to improve the company’s pharmaceutical segment’s growth and will be valued accretive, he added.
“This transaction is a step further in our strategy to make investments, in both internal developments and acquisitions, to expand our presence in the global generic hospital drug market, which is greater than USD 20 billion in size,” said Piramal.
The company’s focus will be continued to be the creation of long-term value for shareholders through this strategy, he added.