Piramal Enterprises looking at re-entry into pharma sector via the acquisition of multiple pharma assets

Piramal Enterprises Ltd (PEL) is scouting the market for multiple acquisition openings across its pharma business. This indicates a possible re-emergence into domestic formulations, which the company exited in 2010.

In its FY21 annual report, the company reported that it is on the lookout for acquisitions of companies with vocational manufacturing capabilities for a Contract Development and Manufacturing Organisation (CDMO), which is a company that assists other companies in the pharma industry on the basis of contracts and provides them with comprehensive services ranging from drug development to manufacturing.

In addition to that, it is also looking at adding complex hospital generics through in-licensing, acquisitions, and capital investments, and organic and inorganic addition of consumer healthcare products. This is an attempt to dominate the pan-India distribution platform.

Piramal raised Rs 3,523 crores from the Carlyle group over a year ago, which is one of the biggest PE deals to happen in the pharma sector in India. The pharma business accounted for about Rs 5,776 crore or 45 percent of total revenues in FY21 for PEL, which showed growth by 7 percent. The EBITDA of the pharma business stood at 22 percent.

Piramal has been a part of ongoing deals in FY21, focusing on expanding its CDMO capabilities. The company has procured a solid oral dosage department in Sellersville, Pennsylvania, in June 2020.

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