Wednesday, December 24, 2008

Piramal Health Buys Minrad For $40 Mn - Dec 24, 2008

Piramal Healthcare on Dec 23 announced that it acquired US-based Minrad International for Rs 188 crore. With a bid to acquire stake of a 100 per cent in Minrad International and with a promise of almost a $100 million worth of sales, the Piramal Group is set to become one of the top three global companies in the critical care space.

Minrad, generic inhalation anesthetics drug maker, had been making losses to the tune of $25 million this year and will provide Piramal Group to enter the US market for sevoflurane.

“Minrad International had put in a lot of money into putting their infrastructure in place but then they ran out of funding”, said Ajay Piramal, chairman, Piramal Group. However, the acquisition by Piramal comes with the complete confidence of turning around the acquired company.

As small pharma companies in the US increasingly find it difficult to find funding, they may be up for grabs and make a strategic fix for companies that have a strong presence in certain niche segments like in biotech.

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