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Piramal Acquires US Drug Maker Ash Stevens For Rs 354 Crore

Ajay Piramal-led pharma-to-finance group Piramal Enterprises has signed a definitive agreement to acquire 100%stake of the US-based drug developer and custom manufacturer Ash Stevens Inc for a total consideration of Rs 353.4 crore

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Ajay Piramal-led pharma-to-finance group Piramal Enterprises Ltd has on Tuesday (16 August) signed a definitive agreement to acquire 100 per cent stake of the US-based drug developer and custom manufacturer Ash Stevens Inc for a total consideration of $52.95 million (Rs 353.4 crore). The transaction is expected to be completed by the end of August, the Indian group said.

Located in Riverview, Michigan, Ash Stevens has over 50 years of experience in contract manufacturing and it currently serves several biotech and pharmaceutical clients worldwide. The US-drug development and manufacturing company has large manufacturing facilities measuring at least 60,000 sq. ft., some eight chemistry based drug development and production laboratories and six full-scale production areas in the US.

As one of the leaders in active pharma ingredients manufacturing, Ash Stevens has been working on many anti-cancer agents and other highly potent therapeutics. Its facilities have approval from US, EU, Australia, Japan, Korea, Mexico regulatory agencies.

“The acquisition of Ash Stevens fits well with our strategy to build an asset platform that offers value to our partners and collaborators. Currently, around 25 per cent of the molecules in clinical development are potent. Our clients are looking for reliable partners that can assist them in advancing these programs forward,” said Vivek Sharma, CEO of Piramal Pharma Solutions, the group's contract manufacturing unit.

Talking about the strategic fit of this acquisition, Sharma said that North America is a key market that the company 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 high potent APIs.

“Having facilities with a differentiated platform and geographical proximity to clients are keys towards building strategic partnerships. We expect this acquisition to also be synergistic with our Antibody Drug Conjugates (ADCs) and injectable business. We can now fulfill client requirements for a single source of supply for both high potent APIs and drug products,” he added.

According to Stephen Munk, CEO of Ash Stevens, the commitment that Piramal has shown towards growing its healthcare businesses, coupled with the complementary capabilities that Ash’s two firms have, makes this an exciting time for Ash Stevens and its employees.

“We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives,” Munk said in a Tuesday statement.

Piramal Enterprises informed that this transaction is not subject to any regulatory approvals as no related party of the group has any interest in Ash Stevens. Wells Fargo Securities Llc served as exclusive financial advisor to Ash Stevens, with legal counsel provided by Morrison & Foerster Llp.

Piramal Enterprises group, which has grown through several acquisitions across its business verticals in the past, is currently one of India’s large business conglomerates with a significant global footprint. With operations in 30 countries and brand presence in over 100 countries, the group’s turnover was around $1.3 billion in fiscal 2016. Its diversified portfolio includes presence in industries like healthcare, financial services, healthcare information management, glass packaging and real estate.


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