Express Pharma

Piramal Enterprises signs agreement to acquire Ash Stevens, US CDMO for HPAPIs

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The facility has approvals from US, EU, Australia, Japan, Korea, Mexico regulatory agencies

Piramal Enterprises’ wholly owned subsidiary in the US has entered into an agreement to acquire 100 per cent stake in Ash Stevens, a US-based Contract Development and Manufacturing Organization (CDMO), in an all cash deal for a consideration of $42.95 million plus an earn-out consideration capped at $10 million. This potential transaction is expected to be completed by the end of August.

As a high-potency API (HPAPI) manufacturer, Ash Stevens works with high potency anti-cancer agents and other highly potent therapeutics. Reportedly, its manufacturing facility in Michigan features all necessary engineering and containment controls for the safe handling and cGMP manufacture of small and large-scale HPAPIs, with Occupational Exposure Limits (OELs) ≤ 0.1µg/m3. The facility has approvals 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, Piramal Pharma Solutions. He further adds, “North America is a key market that we 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 APIs and now, Ash Stevens in Michigan for HPAPIs. 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.”

Dr Stephen Munk, CEO, Ash Stevens, “We look forward to working with the Piramal leadership and management team, to develop API solutions that benefit customers and improve the lives of patients. The commitment that Piramal has shown towards growing its healthcare businesses, coupled with the complementary capabilities that our two firms have, makes this an exciting time for Ash Stevens and our employees. We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives.”

The transaction is not subject to any regulatory approvals. No related party of PEL has any interest in Ash Stevens. Wells Fargo Securities, LLC served as exclusive financial advisor to Ash Stevens, with legal counsel provided by Morrison & Forester LLP.

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