Piramal Enterprises Limited has announced that it has invested USD 30.65 million towards acquiring Coldstream Laboratories Inc. (‘Coldstream’), through its wholly owned subsidiary in the USA in an all cash transaction.
Of this, USD 5.65 million would be towards the purchase of the facility building which is currently leased to Coldstream, while the rest would be towards purchase of 100% of the company’s shares. Coldstream is a Contract Development and Manufacturing Organization (CDMO) focused on the development and manufacturing of sterile injectable products.
Coldstream was founded in 2007 and is majority owned by University of Kentucky Research Foundation (an affiliate of the University of Kentucky). Coldstream is a specialty pharmaceutical contract manufacturer with an emphasis on clinical trial to commercial-scale manufacturing of sterile liquid and lyophilized parenterals and injectables.
Coldstream has developed differentiated expertise to formulate and manufacture high potency and cytotoxic compounds including Antibody Drug Conjugates (ADCs). The company operates from a FDA approved facility located in Lexington, Kentucky, USA. Revenues of Coldstream over the last three years are ~ USD 14 million (2014E), USD ~13 million (2013) and USD ~9 million (2012). Coldstream currently employs 91 people.
Commenting on the acquisition Mr. Vivek Sharma, CEO of PEL’s Pharma Solutions business said “Coldstream is a very high quality operation and has been able to build significant customer relationships and track record for sterile products. We see this as a great platform for growth in our Pharma Solutions business. This acquisition allows PEL to move further into the injectable market segment and should have strong synergy with our existing Pharma Solutions business. Our strong capabilities in sterile product development and in ADC product segment will allow us to offer an integrated solution to our customers.”
Bill Wedlake, President of PEL’s Pharma Solutions Formulations business added, “We have been impressed by the quality of the people at Coldstream and their success in both attracting high quality business and also their track record in quality. Coldstream’s use of isolator technology is impressive and provides a foundation for expansion of the facility to provide large scale commercial manufacturing including production of highly potent compounds.”