- Advertisement -
Home Uncategorized Piramal Enterprises said to mull $1 billion contract pharma sale

Piramal Enterprises said to mull $1 billion contract pharma sale

0

Hong Kong: Indian billionaire Ajay Piramal is considering a sale of his contract pharmaceutical operations, which could fetch around $1 billion, people with knowledge of the matter said. The tycoon’s Piramal Enterprises Ltd. is working with advisers to gauge interest in the business, known as Piramal Pharma Solutions, according to the people. It has sent out preliminary marketing materials to potential buyers, the people said, asking not to be identified because the information is private.

Shares of Piramal Enterprises jumped as much as 4.7 percent Tuesday. They were up 3.3 percent at 1:43 p.m. in Mumbai, giving the company a market value of about $5.8 billion.

Piramal Pharma Solutions is a contract development and manufacturing organization, which provides services including drug discovery and commercial production to other health-care firms. The sale has attracted interest from private equity firms and U.S. companies, the people said.

The business has about $70 million to $80 million of annual earnings before interest, taxes, depreciation and amortization, according to the people. It could be valued at 12 to 15 times Ebitda in a sale, one of the people said.

Deliberations are at an early stage, and Piramal Enterprises could still decide against pursuing a deal, the people said. A representative for Piramal Enterprises said the company doesn’t comment on market speculation.

Any transaction will add to the $3.8 billion of health-care services deals involving Indian companies this year, data compiled by Bloomberg show. In 2010, Piramal Enterprises sold its branded generic-medicine unit in India to Abbott Laboratories for $3.7 billion.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

- Advertisement -DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com

Exit mobile version