Newsmaker 2008

From NPIL to Piramal Healthcare

The company re-branded its entire operations as part of its expansion strategy and was in the news the entire year for its key global acquisitions

After 20 years of operations, Nicholas Piramal India Limited (NPIL) acquired a new corporate identity- Piramal Healthcare, in 2008. It was a part of a re-branding exercise to craft a value-driven identity that unifies the diverse companies within the Piramal Group. The primary objective of the re-branding exercise was to broad-base the Group's future activities. The name change was intended to create a unified umbrella branding for all its commercial enterprises. Later on in the year, as a part of its mega CSR activity it went on to launch a huge Rs 10 crore nationwide campaign -'helpyourbody' which was officially launched by former President of India- Dr APJ Abdul Kalam. It was a comprehensive programme meant to reduce the projected trend of chronic diseases through three phases - knowledge, action and care. The initiative was supported by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and more than 25,000 doctors across India. By the year end, as a part of its global expansion and diversification of its portfolio, it went on to acquire a German and US based firm. It had a definitive agreement with PlasmaSelect AG, Germany (PlasmaSelect), to acquire PlasmaSelect's polygeline-based blood plasma products marketed under the brand name 'Haemaccel' in over 38 countries. In addition, PlasmaSelect also markets the product under the brand name 'Emagel' in Italy and 'Solucel' in Venezuela. This acquisition is intended to bring global leadership to Piramal Healthcare's polygeline-based blood plasma expansion products. Piramal Healthcare currently markets the products under the brand name 'Haemaccel' in India and under the brand name 'Haemageline' in 17 other countries. Commenting on the acquisition, Ajay Piramal, Chairman, Piramal Group said, "Over the years, we have recognised the compelling potential of the global critical care business. We aspire to become a leading global player in this business with our worldwide distribution network and state-of-the-art manufacturing facilities in India." Piramal Healthcare, by the month of December, acquired New York-based Minrad International, a manufacturer of generic inhalation anaesthetic drugs for $40 million. Under the arrangement, the shareholders of Minrad received $0.12 a share in cash and Piramal will also acquire Minrad's eight per cent senior secured convertible notes from the note holders. The strategic combination will give Piramal access to key intellectual property to manufacture inhalation anesthetics, including process-based intellectual property for both sevoflurane and desflurane. In addition, it will also provide Piramal an immediate entry into the US market for sevoflurane, the largest selling inhalation anesthetic in the US. Market experts believe that the acquisition will make Piramal the third largest player in the world for inhalation anaesthetics after Abbott Laboratories and Baxter. Post acquisition, Minrad will become a newly incorporated wholly-owned subsidiary of Piramal and it will be de-listed from the US stock exchanges. The acquisition is expected to close by February-March 2009.