PI Industries shares surge after twin acquisitions in Pharma API, CDMO space

Therachem Research Medilab is a chemistry-driven solution provider in medicinal chemistry research, process research and development, specialising in the rare disease area. It provides services and products to pharmaceutical and biopharmaceutical companies in the preclinical and clinical stages.

It had consolidated revenue of around $33 million with a normalised EBITDA of approximately $14 million for the year ended March 31, 2022. EBITDA refers to earnings before interest, tax, depreciation and amortisation.

PI Health Sciences has also signed a definitive agreement with Plahoma Twelve GmbH for acquiring 100 percent stake in Archimica SpA for 34.2 million euros.

Archimica is an Italy-based small molecule API manufacturer and CDMO servicing over 60 marquee customers in more than 30 countries. It had revenue of around $45 million with Ebitda of approximately $7 million for the year ended December 31, 2022.

The purchase consideration of both these acquisitions will be paid in cash and will be funded from the completed qualified institutional placement (QIP) proceeds and internal accruals.

PI Industries said that both the acquisitions are expected to be earnings-accretive with immediate effect and the consummation of the transactions and their integration into the corporate structure of PI is expected to be completed during Q1FY24.

The company added that PI Health Sciences will combine the acquired businesses’ R&D capabilities with the new integrated pharma research centre being developed in IKP Hyderabad for CRO (clinical research organization) and CDMO offerings.