India's Piramal to buy Bharat Serums injectable anesthetics business

Indian drugmaker Piramal Healthcare says that it has signed a definitive agreement to acquire Bharat Serums and Vaccines injectable anesthetic products business. Financial terms of the deal were not disclosed, although local sources say purchase price is in the 150-200 million rupee ($3.4-$4.5 million) range.

Piramal would be acquiring BSV's injectable anesthetic products business including propofol, bupivacaine and atracurium besylate, according to a company press release. This anesthetic product range is developed and currently manufactured by BSV at its own plant. The business had sales of 106 million rupees in the 2010 fiscal year, 80% of which was accounted for by propofol.

In early 2009, Piramal acquired New York, USA-based generic inhalation anesthetics firm Minrad International for about $40 million, and so gaining access to enflurane, desflurane, and sevoflurane.

The latest acquisition will give Piramal access to key intellectual property developed by BSV for the manufacture of injectable anesthetics products including process-based intellectual property and business contracts. It also provides the firm with an immediate entry into the propofol market, the largest selling injectable anesthetic globally. According to IMS Health, the global market for propofol is worth around $825 million, with the sector outside the USA, Europe and Japan estimated at some $250 million.