Shares of Piramal Enterprises 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,” Piramal Enterprises 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, Piramal Enterprises 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.