Piramal Pharma Targets Peptide APIs Market, Acquires 100% Stake in India’s API Manufacturer Hemmo

India’s Piramal Pharma Solutions (PPS), a Contract Development and Manufacturing Organization (CDMO) of Piramal Pharma Limited, announced the full acquisition of Hemmo Pharmaceuticals, one of India’s largest synthetic peptides manufacturers. PPS will offer $106 million (INR 775 crores) as an upfront payment for the acquisition.

The Booming Peptide APIs Market

As per a 2017 report, the peptide synthesis market was around 292.4 million in 2017 but is projected to reach 426.4 million by 2023 with a CAGR of 6.5%. In addition, there are more than 500 clinical trials globally evaluating peptide-based medications with over 60% of trials investigating its effect on oncological disorders while 14% are on metabolic disorders.

“During the past decade, peptide drugs have seen increased use in oncology, treatment of diabetes and obesity,” said Peter DeYoung, CEO, Pharma Solutions, Piramal Pharma Limited. “The growth in therapies for rare diseases and orphan drugs has also increased the need for peptides.”

Moves to Acquire Hemmo

Estimated to complete in the following 6 weeks, the acquisition will bring above 250 employees including Ph.D. scientists and a quality team of more than 60 people to PPS. After the acquisition, Hemmo will become a subsidiary of Piramal Pharma.

(Photo Courtesy: Hemmo Pharmaceuticals)

As a big synthetic peptide API manufacturer, Hemmo can enhance PPS’ position in the market. It has over 38 years of experience delivering GMP products with more than 30 APIs and custom synthesis services. Through the acquisition, PPS would be able to expand the capabilities of peptide APIs and boost the ability to provide related services. Besides, it can also challenge the key players in the market including CordenPharma, PolyPeptide, Bachem, BCN Peptides, and Pepscan.

“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,” said Madhu Utamsingh, Promoter and Managing Director of Hemmo.

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Tyler Chen

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