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Nicholas Piramal India Ltd Acquires Avecia Unit
Posted on 2005-10-27 08:13:00
Avecia announced today that it has signed a definitive agreement to sell its Pharmaceutical custom synthesis business to Nicholas Piramal India Ltd for GBP 9.5 million. The transaction, which will fund the business’ UK pension fund deficit of between GBP 8-9 m, is subject to regulatory and other closing conditions. In 2004, the business recorded sales of GBP 36 million.
The sale includes all Avecia Pharmaceuticals’ assets and operations at its principal UK site in Huddersfield, England, a large scale fermentation asset at Billingham, England, a High Potency Substance (HPS) facility at Grangemouth in Scotland and its North American operation - Torcan Chemicals in Aurora, Canada. All 350 Avecia Pharmaceuticals’ employees are included in the transaction.
David Killworth, Vice President Avecia Pharmaceuticals said: “I am delighted that we will be joining forces with Nicholas Piramal India Ltd to create a major new force in the custom synthesis business. This transaction brings together the strengths of Indian and Western operations to provide a total lifecycle solution which addresses the changing requirements of the global pharmaceutical and biotechnology sectors”.
Avecia Pharmaceuticals provides process development and custom synthesis services to the international market place. Torcan Chemical, based in Canada, offers full API services for clinical trials and manufactures commercial APIs in FDA approved facilities. The Early Phase Delivery Team (EPDT) and Pharma Products units in the UK, manufacture intermediates/APIs for clinical trials with scale up manufacturing capabilities for launched drugs. The business also operates a High Potency Substances(HPS) unit providing specialist high containment facilities for the manufacture of highly active compounds, including those for the fast growing oncology sector.
Nicholas Piramal is one of India’s largest pharmaceutical companies, with FY2005 Net Sales of Rs. 12.3 billion (US$283 million) and Profit after tax of Rs. 1.7 billion (US$ 39 million). NPIL is ranked fourth by market share in the Indian Pharmaceuticals market. In the global markets, it follows a strategy of partnering Innovator Companies for Custom Manufacturing, and has a policy of staying away from the Early-to-market Generics segment. NPIL also has a modern R&D Center at Mumbai, where 275 scientists work on discovery research and process innovation. See: www.nicholaspiramal.com
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