Piramal Health to buy Minrad for $40 mn

Piramal Health to buy Minrad for $40 mn

Mumbai: Pharma company Piramal Healthcare Ltd said on Tuesday that it has signed a deal to buy US based inhalation anaesthetics maker Minrad International Inc for about US $40 million in cash and debt.

Under the terms, Minrad shareholders will get 12 cents a share in cash, a 100% premium to the stock’s on Monday closing price on the American Stock Exchange (Amex).

Piramal will also buy Minrad’s senior secured convertible notes, the company said in a statement to the stock exchange.

“The offer to Minrad is consistent with our commitment to build a serious global presence in critical care," chairman Ajay Piramal said in the note.

With the acquisition, Piramal will gain access to the intellectual property for making inhalation anaesthetics and will be able to immediately break into the US pharmaceutical market for the country’s top-selling inhalation anaesthetic, sevoflurane.

The deal is expected to close in the first quarter of 2009 subject to Minrad shareholders approval and will add to Piramal’s earnings for the year to March 2010, the company said.

This year, the company has already acquired German PlasmaSelect AG’s blood expansion products, two brands from the India-based Khandelwal Labs, and bought out Bangalore-based Healthline Pvt Ltd’s drug business.

Piramal shares are trading 2.9% lower at Rs236.05 on very low volumes in a weak Mumbai market, while Minrad ended on Monday 14.3% lower at 6 cents on the Amex.