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Our Bureau

BOOSTING GLOBAL PRESENCE: Mr Ajay Piramal, Chairman, Nicholas Piramal, at a press conference in Mumbai on Thursday.

Mumbai , June 15

Nicholas Piramal India Ltd (NPIL) is set to acquire Pfizer's manufacturing facility in the United Kingdom, a move that boosts NPIL's global presence in custom-manufacturing.

It also makes NPIL the largest global contract manufacturer for Pfizer in terms of the value of orders, said Mr Ajay Piramal, Chairman of NPIL.

The plant located at Morpeth is an integrated facility, with production and supply chain capabilities across bulk drugs, finished forms of medicines, packaging and distribution. The cost of acquisition was not disclosed.

NPIL has also signed a supply agreement with Pfizer till November 2011, with the potential to bring in revenues of $350 million.

The deal would not stop NPIL from entering into custom manufacturing contract with other drug-makers, he added.

NPIL has an existing tie-up with Pfizer in the animal health segment, but that deal is outside of the latest agreement, Mr Piramal said. It was, however, indicative of the trust that builds from one deal to another in the custom-manufacturing segment, he said.

This is NPIL's third acquisition in the UK in over a year.

The plant will be integrated into the company's operations and the 450 people working there will be retained, he said. The plant makes 12 products, both patented and non-patented, he added.

The present Pfizer deal has been effected through NPIL's wholly-owned subsidiary in the UK, NPIL Pharmaceuticals (UK) Ltd (earlier, Avecia Pharmaceuticals, UK). The acquisition would be funded through internal accruals. The company had recently got its board approval to raise $1.5 billion to support acquisition plans.

Mr Piramal said that NPIL has exceeded its projection of 50 per cent of its revenues coming from custom manufacturing. The company's shares closed at Rs 168 on the BSE, up 6.49 per cent.

More Stories on : Pharmaceuticals | Mergers & Acquisitions | Overseas Investments

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