Piramal Adds Ash Stevens for $53 Million
A wholly owned US subsidiary of India’s Piramal Enterprises has agreed to buy Contract Development and Manufacturing Organization (CDMO) Ash Stevens for nearly $53 million. The purchase price will be made up of $42.95 million in cash plus an earn-out consideration – an additional sum linked to performance – capped at $10 million.
Ash Stevens provides additional capabilities in the manufacture of high-potency APIs (HPAPIs). Its facility in Riverview, Michigan, USA, which is approved by the regulatory authorities in the EU, US, Australia, Japan, South Korea and Mexico, can handle cGMP manufacture of both small and large-scale HPAPIs, with occupational exposure limits of 0.1µg/m3.
According to Vivek Sharma, CEO of Piramal Pharma Solutions, around 25% of molecules currently in clinical development are potent. The Riverview site adds to Piramal’s facilities in Kentucky for fill finish needs, and Toronto, Canada, for complex high value 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 fulfil client requirements for a single source of supply for both high potent APIs and drug products,” Sharma said.
In addition to the HPAPI facility, Ash Stevens’ site houses eight chemical drug development and production laboratories and six full-scale production areas. The transaction is not subject to any regulatory approvals and is expected to be completed by the end of August.
