Piramal Enterprises said it is acquiring Coldstream Laboratories, a contract development and manufacturing organization (CDMO) controlled by the University of Kentucky Research Foundation, for $30.65 million cash.
Piramal says the deal will enable it to enhance its existing capabilities in developing sterile products and antibody-drug conjugates with Coldstream’s know-how in developing and manufacturing sterile injectables.
“Coldstream is a very high quality operation and has been able to build significant customer relationships and track record for sterile products. We see this as a great platform for growth in our Pharma Solutions business,” the CEO of that Piramal segment, Vivek Sharma, said in a statement released on Friday.
Added Bill Wedlake, president of Piramal Pharma Solutions’ formulations business: “Coldstream’s use of isolator technology is impressive and provides a foundation for expansion of the facility to provide large scale commercial manufacturing including production of highly potent compounds.”
Coldstream is a specialty pharmaceutical contract manufacturer that specializes in clinical trial to commercial-scale manufacturing of sterile liquid and lyophilized parenterals and injectables.
Piramal has been on a growth track of late. On January 13, the company disclosed plans to invest $40 million in new equipment and advanced technologies: “The recent investments include areas such as antibody drug conjugation (ADCs), advanced flow reactor (ARF), and biocatalysis centre of excellence systems.”
The company added that it recently completed a $10 million facility designed to double its discovery services capacity, and has approved a pair of expansion projects totaling $20 million—a tripling of its capacity for manufacturing hormonal healthcare products in Morpeth, England; and an upgrade of its ADC manufacturing suite from clinical phase to commercial grade in Grangemouth, Scotland.
Piramal exited branded generics in 2010 after selling the business to Abbott Laboratories for $3.8 billion.
Piramal Pharma Solutions has 450 scientists, including 100 Ph.Ds worldwide, according to its website. Coldstream employs 91 people, and had estimated 2014 revenues of $14 million.
Piramal agreed to purchase Coldstream’s leased, FDA-approved facility building in Lexington, KY, for $5.65 million, then use the rest of what it will spend to buy all of Coldstream’s shares.
The Lexington site will be Piramal Pharma Solutions’ tenth manufacturing facility worldwide, and its first in the U.S.—but not its first in North America, since the company has an API development and manufacturing site in Toronto.
Piramal Pharma Solutions is part of The Piramal Group, a diversified conglomerate with more than 7,500 employees, operations in more than 30 countries and brand-presence across 100 markets worldwide.