Piramel buys contract manufacturer Ash Stevens
- India's Piramel is acquiring Michigan-based contract development and manufacturing organization Ash Stevens.
- Piramel will pay $42.95 million plus $10 million in earn-outs. The deal is expected to close by the end of the month.
- Ash Stevens is the manufacturer of high-potency active pharmaceutical ingredients (API), and has been approved to manufacture the APIs for 12 drugs including Millennium Pharmaceutical's Velcade.
The acquisition allows Mumbai-based Piramel to expand its presence in North America and shows the growing interest in the production of APIs. Many pharmaceutical companies are now outsourcing the production and manufacturing of their products to third parties in an effort to streamline the supply chain and cut down on costs.
"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% of the molecules in clinical development are potent," said Vivek Sharma, CEO of Piramal Pharma Solutions, in a statement.
The company already has a strong presence in the U.S. with two other facilities, including the Coldstream Labs in Kentucky for fill finish needs and a Torcan facility in Toronto for complex high value APIs.
"Having facilities with a differentiated platform and geographical proximity to clients are keys towards building strategic partnerships," he added.
Ash Stevens has a 60,000 sq.ft. facility with eight chemical drug development and production laboratories, as well as and six full-scale production areas.
- Piramel Statement
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