Piramal is to purchase US contract development and manufacturing organisation Ash Stevens for $42.95 million in cash, plus an earn-out consideration capped at $10 million.
The deal is expected to be completed by the end of August.
Located in Riverview, Michigan, Ash Stevens has more than 50 years of experience in contract manufacturing, and serves biotech, mid-size pharma, and large pharmaceutical clients worldwide.
The firm has more than 60,000 ft2 of facilities, eight chemical drug development and production laboratories, and six full-scale production areas.
A leader in high potency active pharmaceutical ingredient (HPAPI) manufacture, Ash Stevens' facility in Michigan is equipped with all necessary engineering and containment controls for the safe handling and cGMP manufacture of small and large-scale HPAPIs, with Occupational Exposure Limits (OELs) ≤ 0.1µg/m3.
The facility has approvals from US, EU, Australia, Japan, Korea, Mexico regulatory agencies.
Vivek Sharma, CEO of Piramal Pharma Enterprises, said the acquisition 'fits well with our strategy to build an asset platform that offers value to our partners and collaborators'.
He added that around 25% of the molecules in clinical development are potent, and Piramal's clients are looking for 'reliable partners that can assist them in advancing these programmes forward'.
Vivek Sharma: 'North America is a key market that we can now service from our three local facilities'
Sharma said: 'North America is a key market that we can now service with our three local facilities – the Coldstream Labs in Kentucky for fill finish needs, the Torcan facility in Toronto for complex high value API’s and now, Ash Stevens in Michigan for HPAPIs.'
Having facilities with a differentiated platform and geographical proximity to clients are keys towards building strategic partnerships, he said.
Sharma added that Ash Stevens would also be coordinated with Piramal's Antibody Drug Conjugates (ADCs) and injectable business.
'We can now fulfil client requirements for a single source of supply for both high potent APIs and drug products,' he said.
Dr Stephen Munk, CEO of Ash Stevens, said: 'The commitment that Piramal has shown towards growing its healthcare businesses, coupled with the complementary capabilities that our two firms have, makes this an exciting time for Ash Stevens and our employees.
'We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives.'
