Piramal Pharma Solutions (PPS), a CDMO business of Piramal Pharma Limited (PPL), has agreed to acquire Hemmo Pharmaceuticals, a manufacturer of peptide APIs, for INR7.75bn ($105m).

Established in 1979, Hemmo is engaged in developing and manufacturing peptide APIs, with a portfolio of more than 30 APIs under clinical development.

Hemmo promoter and managing director Madhu Utamsingh said: “We are very excited about this transaction and believe PPS is an ideal partner to take the business through its next phase of growth.

“Hemmo’s employees and customers have been core to the business and I strongly believe, will benefit from PPS’ expertise in providing integrated services globally.”

With the acquisition, PPS will enter into the development and manufacturing of peptide APIs, which will complement its existing service offering.

Also, Hemmo’s capabilities will help PPS obtain access to the growing peptide API market and enhance its capabilities in offering integrated services.

The acquisition is subject to customary regulatory closing conditions and adds more than 250 employees to PPS, including several PhD scientists and a quality team of more than sixty.

PPS offers drug discovery solutions, process and pharmaceutical development services, clinical trial supplies, commercial supply of APIs and finished dosage forms.

PPL chairperson Nandini Piramal said: “Hemmo has demonstrated excellence and a great quality track record with a differentiated and hard to replicate capability.

“Once welcomed into the PPL family, it will be another example of a distinctive offering to attract and delight customers.

“This is the third Pharma acquisition this fiscal year, and yet another example of the implementation of our profitable growth strategy.”

Kotak Mahindra Capital served as financial advisor and Economic Laws Practice (ELP) as legal advisors to PPL for the transaction, while Torreya Partners India served as a financial advisor and Desai & Diwanji as legal advisors to Hemmo Pharmaceuticals.