The deal is under consideration for upfront $155 million, up to an additional $20 million.
Piramal Enterprises said its UK subsidiary will acquire five anesthesia and pain management injectable products from Janssen Pharmaceutica NV, in an all-cash deal, for an upfront consideration of $155 million (nearly Rs 1031.17 crore) and up to an additional $20 million (nearly Rs 133.06 crore).
In a BSE filing, Piramal Enterprises said that "its wholly-owned Critical Care subsidiary in the UK has entered into an agreement to acquire five anesthesia and pain management injectable products from Janssen Pharmaceutica NV, in an all cash deal for an upfront consideration of $155 million, and up to an additional $20 million".
Janssen Pharmaceutica, the pharmaceutical division of Johnson & Johnson, can earn up to an additional $20 million if the product portfolio achieves certain agreed financial milestones over the next 30 months, Piramal said.
The transaction is expected to close this week, it added.
Piramal Critical Care has agreed to acquire the brand names and all related IP as associated with the products, including the know-how to make both the active pharmaceutical ingredients (API) and the finished dosage forms of the Products.
The products to be acquired are five injectable versions of Janssen brands, Sublimaze (fentanyl citrate), Sufenta (sufentanil citrate), Rapifen (alfentanil hydrochloride), Dipidolor (piritramide), and Hypnomidate (etomidate) (the Products). The products are currently marketed in over 50 countries.
"The potential acquisition does not include the transfer of any manufacturing facilities or employees. As part of the transaction, Janssen will continue to supply finished dosage forms for up to three years and API for up to five years," it added.
Janssen will continue to sell the products on behalf of Piramal until the marketing authorisations or relevant business relations are transferred to Piramal.
"Healthcare is an important focus area for Piramal Enterprises and we are strongly committed to growing this segment. The healthcare segment has grown at 17% CAGR over the last five years. This would be our sixth healthcare acquisition in the last two years, inorganically investing Rs 1,800 crore across our healthcare businesses," Piramal Enterprises Chairman Ajay Piramal said.
"This acquisition is critical in shaping our product offerings, providing access to global markets and leveraging our existing capabilities. This acquisition is an important step in enabling Piramal Critical Care to start to address the global generic injectable hospital drug market which is greater than USD 20 billion in size," he added.
The completion of the transaction is not subject to any further regulatory approvals.
Shares of Piramal Enterprises were trading 0.88% higher at Rs 1,871 on BSE.
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