Piramal Ent-arm to acquire Hemmo Pharma for Rs 775 cr; stock gains over 3%

Shares of gained 3.3 per cent in the intra-day deals to quote at Rs 1,810 on the BSE on Thursday after the company’s subsidiary, Piramal Pharma, acquired Hemmo Pharmaceuticals.

“Piramal Pharma’s (PPL) Contract Development and Manufacturing Organization, Piramal Pharma Solutions (PPS), announced that PPL has entered into an agreement to acquire a 100 per cent stake in Hemmo Pharmaceuticals (Hemmo) for an upfront consideration of Rs 775 crore,” said in a presentation.

Hemmo is one of the few pure play peptide API (active pharmaceutical ingredient) manufacturers globally and is one of India’s large manufacturers of synthetic peptides. During the past decade, peptide drugs saw an increased use in oncology, treatment of diabetes and obesity. The company has a long relationship with leading global peptide customers with 2/3rd of sales to regulated market (directly / indirectly).

According to Piramal, the acquisition will add peptide API development and manufacturing capabilities to PPL’s CDMO business. The peptide drugs are growing significantly in oncology and metabolic therapies, it said.

“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,” Peter DeYoung, CEO at Pharma Solutions, Piramal Pharma said.

At 11:43 am, was trading 3 per cent higher at Rs 1,801 on the BSE, as against a 0.11 per cent rise in the S&P BSE Sensex. A combined 660,000 equity shares had changed hands on the counter on the NSE and BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Source link