Piramal Spends $171M in Latest Portfolio Expansion Deal

Mallinckrodt has sold its portfolio of intrathecal spasticity and pain management drugs to Piramal’s Critical Care subsidiary in the UK for $171 million and up to an additional $32 million payable depending on financial performance of the acquired assets over the next 3 years.

The portfolio acquired includes Gablofen (baclofen), a severe spasticity management product, which is currently marketed in the U.S., and two pain management products, which are currently under development. Gablofen has also been approved for launch in 8 European markets. Gablofen is the only intrathecal baclofen drug available in vials and pre-filled syringes. The pain management drugs under development are also for intrathecal administration. In the twelve months ending September 30, 2016, the acquired portfolio generated revenues of $44.6 million.

“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 crores across our pharmaceutical businesses,” said Ajay Piramal, chairman, Piramal Enterprises Limited. “All these acquisitions are expected to be value accretive and will improve our pharmaceutical segment’s growth and EBITDA in percentage and in absolute terms. 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 $20 billion in size. Through this strategy, our focus continues to be the creation of long term value for shareholders.”

Peter DeYoung, chief executive officer, Piramal Critical Care, said, “This is Critical Care’s second acquisition in the last four months, following our acquisition of a portfolio of anesthesia and pain management injectable drugs from Janssen Pharmaceutica NV. This acquisition provides Piramal a leadership position within the intrathecal spasticity segment and the opportunity to access the intrathecal pain management market, which is complementary to our critical care focus, and leverage our current operations and capabilities, especially in the U.S. These acquisitions add branded products that are in attractive niches with barriers to entry and limited competition. Along with our inhalation anesthesia products, we are building an exciting portfolio to offer our customers and a substantially more diversified revenue base.”