PI Inds soars on acquiring two firms in the pharma API & CDMO space

On the BSE, over 0.41 lakh shares of the company were traded at the counter so far as compared with an average trading volume of 7569 shares in the past two weeks.

The agrochemicals maker said that wholly owned subsidiary PI Health Sciences (PIHS) has executed definitive documents with Therachem Research Medilab LLC (TRM) for acquiring its wholly owned subsidiaries in India and assets in the US.

TRM is an innovative, chemistry-driven solution provider in medicinal chemistry research, process research and development, specialising in the Rare Disease area. It provides services and products to pharmaceutical and biopharmaceutical companies in the preclinical and clinical stages. It has manufacturing facilities in India and R&D facilities in India and the US.

TRM had consolidated revenue of approximately $33 million with a normalised EBITDA of approximately $14 million for the year ended 31 March 2022.

PIHS has also signed definitive documents with Plahoma Twelve GmbH for acquiring 100% stake in Archimica S.p.A. (Archimica)

Archimica is an Italy-based, highly reputable small molecule API manufacturer and a contract development & manufacturing organisation (CDMO) servicing over 60 marquee customers in more than 30 countries. Archimica owns 24 US DMFs, GMP manufacturing facility for APIs and Intermediates across wide therapeutic and substance classes such as oncology, anti ulcer, and anti arthritis.

Archimica had revenue of approximately $45 million with EBITDA of approximately $7 million for the year ended 31 December 2022.

These acquisitions align with PI's long-term strategic objective of building a differentiated CDMO offering across the pharma value chain,? PI Industries said in a statement.

It further announced that PIHS will combine the acquired businesses' R&D capabilities with the brand new integrated pharma research centre being developed in IKP Hyderabad for CRO and CDMO offerings to a wider set of customers across the entire pharma value chain.

The acquired businesses' innovative products, accredited manufacturing facilities in India and the EU and an experienced management team will enable access to strong customer franchises in the regulated markets.

The purchase consideration for TRM is $50 million and an additional consideration of up to $25 million in performance-linked pay-outs over the next six years.

Archimica has been acquired by PIHS for a consideration of 34.2 million euros.

PI Industries said that the purchase consideration will be paid in cash and funded from the completed qualified institutional placement (QIP) proceeds and internal accruals. Both acquisitions are expected to be earnings accretive with immediate effect. The consummation of the transactions and integration into the corporate structure of PI is expected to be completed during Q1 FY24, subject to the fulfilment of customary closing conditions and regulatory approvals.

Mayank Singhal, vice chairperson & managing director of PI Industries, said: ?We are excited about these acquisitions as they mark a solid and accelerated beginning of PI's journey in the pharma space. These acquisitions align with PI's approach of working with global innovators and being at the forefront of innovation, science, technology and human ingenuity to create transformative solutions in life sciences with the purpose of reimagining a healthier planet.?

PI Industries operates in the domestic agricultural inputs and custom synthesis manufacturing (CSM) exports segments. It is a leading player in the domestic agricultural inputs sector, primarily dealing in agrochemicals and plant nutrients.

The company reported 58% jump in consolidated net profit to Rs 351.80 crore on 18.9% rise in revenue to Rs 1613.20 crore in Q3 FY23 over Q3 FY22.

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