The acquisition is expected to add more than two hundred and fifty employees to PPS
Piramal Pharma’s Contract Development and Manufacturing Organization (CDMO), Piramal Pharma Solutions (PPS), has entered into an agreement to acquire a 100 per cent stake in Hemmo Pharmaceuticals for an upfront consideration of Rs 775 crores and earn-outs linked to the achievement of milestones.
Hemmo is one of India’s largest manufacturers of synthetic peptides with a legacy of more than 38 years in business supplying peptide products and custom peptide synthesis. Hemmo has R&D capabilities and a world-class GMP manufacturing facility that has been inspected and deemed compliant by US, EU, and Asian regulatory agencies. The company has strong expertise in both solution-phase and solid-phase synthesis of peptides, the announcement said.
“As PPS continues to expand and grow its capabilities and position as a leading CDMO, this acquisition marks PPS’ foray into the development and manufacturing of peptide APIs, a capability that complements PPS’ existing service offering. Hemmo is one of the few pure-play synthetic peptide API manufacturers in the global marketplace. With the addition of Hemmo’s capabilities, PPS will gain access to the growing peptide API market and enhance its ability to offer integrated services to its customers globally,” the announcement added.
The acquisition is expected to add more than two hundred and fifty employees to PPS, including several PhD scientists and a Quality team of more than sixty. The acquisition agreement is subject to customary regulatory closing conditions.
Nandini Piramal, Chairperson – Piramal Pharma Limited said, “Hemmo has demonstrated excellence and a great quality track record with a differentiated and hard to replicate capability. Once welcomed into the PPL family, it will be another example of a distinctive offering to attract and delight customers. This is the third Pharma acquisition this fiscal year, and yet another example of the implementation of our profitable growth strategy.”
Peter DeYoung, CEO, Pharma Solutions – Piramal Pharma, said, “During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity. The growth in therapies for rare diseases and orphan drugs has also increased the need for peptides. This acquisition enhances our ability to provide integrated solutions that our customers need and further expands ways in which we can help reduce the burden of disease on patients.”
Madhu Utamsingh, Promoter and MD, Hemmo said, “We are excited about this transaction and believe PPS is an ideal partner to take the business through its next phase of growth. Hemmo’s employees and customers have been core to the business and I strongly believe, will benefit from PPS’ expertise in providing integrated services globally.”
Torreya Partners India served as financial advisor and Desai & Diwanji, Mumbai Office served as legal advisors to Hemmo Pharmaceuticals and sold shareholders on this transaction.
Kotak Mahindra Capital Company served as financial advisor and Economic Laws Practice (ELP) served as legal advisors to PPL on this transaction.