Piramal Pharma, with ambitions to grow as a CDMO force, is spending (PDF) $105 million in a straight-cash buyout of Hemmo Pharmaceuticals.
This is a local deal for Piramal—which is based in Mumbai—but one that carries global implications. Hemmo, in business for 38 years, develops and manufactures synthetic peptide ingredients from its two main sites nearby. The company has a manufacturing site in suburban Turbhe that's certified by the U.S. Food and Drug Administration and several other international regulatory agencies.
Hemmo brings 250 employees and allows Piramal to gain access to the growing peptide active pharmaceutical ingredient market.
“During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity,” Piramal CEO Peter DeYoung said in a statement. "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.”
Over the years, Piramal has amped up its presence in the U.S. and the U.K.
In June of last year, Piramal purchased a former G&W Laboratories oral solid-dose plant in Sellersville, Pennsylvania, to expand its finished drug CDMO capacity in the U.S. The acquisition added 100 workers and 221,000 square feet of manufacturing space.
In 2016, Piramal acquired an API facility in Riverview, Michigan, for $53 million; the company last year poured $10 million into expanding it. In 2017, Piramal spent $55 million to beef up its R&D capabilities in England and to upgrade manufacturing automation and IT across its network.
Helping fund Piramal’s expansion was a $490 million infusion from the Washington, D.C.-based Carlyle Group, which bought a 20% stake in the company in June of last year.