Piramal Pharma’s latest acquisition

Piramal Pharmaceuticals Ltd (PPL), known until 2012 as Piramal Healthcare Ltd, has taken one more step towards becoming a full-featured pharmaceutical company. Earlier this week, its Contract Development and Manufacturing arm, Piramal Pharma Solutions Ltd acquired Hemmo Pharmaceuticals, one of the world’s largest suppliers of peptides and other biological products for a cash consideration of Rs775 crore.

Hemmo Pharma, based in Mumbai, has been in existence for the last 38 years and has developed considerable expertise in the manufacture of synthetic hormones, such as Oxytocin and Somatostatin. Hormones are present in the human body in its natural state and perform a variety of biological tasks within different organs of the body.

However, when there is a shortage of these substances in the body, they have to be given from outside in the form of tablets or injections. Common examples include insulin to treat diabetes; thyroxine tablets needed for people with hypothyroidism; and statins that are routinely prescribed for lowering blood cholesterol. Oxytocin too is widely used for facilitating the progress of labour in expectant mothers.

The company has about 250 employees including a sizeable number of Ph D and postgraduates in biochemistry and other related scientific fields. They will all become employees of the Piramal group, after the acquisition process is complete. Its manufacturing facilities are located in Turbhe, Navi Mumbai and Thane, both of which are satellite towns of India’s financial capital. Hemmo also has a research facility in Girona, Spain, where a small number of their research scientists are located. Its factories are approved by the US FDA and regulatory authorities of other developed countries which enables them to export their products to these markets.

Distinctive offering

“Hemmo has demonstrated excellence and a great quality track record with a differentiated and hard to replicate capability,” says Nandini Piramal, chairperson, Piramal Pharma. “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.”

“During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity,” adds Peter DeYoung, CEO, Pharma Solutions, Piramal Pharma. “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.”

“We are excited about this transaction and believe PPS is an ideal partner to take the business through its next phase of growth,” remarks Madhu Utamsingh, promoter & managing director, Hemmo. “Our employees and customers have been core to the business and I strongly believe, will benefit from PPS’ expertise in providing integrated services globally.”

Piramal Pharma Solutions (PPS) is a Contract Development and Manufacturing Organisation (CDMO) that provides a variety of scientific services to its clients all through the lifecycle of their clients’ products. Thus, from developing more advanced forms of administering an existing injectable medicine to guiding the new product through the clinical trials and the regulatory maze – these are among the areas of expertise for PPS. In addition, it has the capacity to produce small quantities of any medicine, from a few grams to one kg, which is a critical requirement during product development and testing, This is not possible in a large scale manufacturing unit.

Pharma Solutions was one of three components that remained with the Piramal group after its entire domestic formulations was sold to Abbott in September 2010. The other two were critical care and Consumer Products. Soon afterwards, the Piramal management decided to concentrate on Drug Discovery Services which were needed by MNC giants involved in the development of entirely novel medicinal products. Gradually, by a series of acquisitions in different countries, it put together a portfolio of products and services for the global pharmaceutical industry.

It now has a full range of pharmaceutical products from APIs for medications to treat vomiting, high blood pressure, convulsions, etc to biological substances needed for the production of hormones. Further, PPS offers antibody drug conjugates that are high up on the totem pole of biotech medicines. There is also a nutritional products division that caters to animal health as well.