Piramal Pharma Solutions is a contract development and manufacturing organisation, which provides services including drug discovery and commercial production to other healthcare firms. The sale has attracted interest from private equity firms and US companies, the people said.
The business has about $70 million to $80 million of annual earnings before interest, taxes, depreciation and amortisation (Ebitda) according to the people. It could be valued at 12 to 15 times Ebitda in a sale, one of the people said.
Deliberations are at an early stage, and Piramal Enterprises could still decide against pursuing a deal, the people said. A representative for Piramal Enterprises said the company doesn’t comment on market speculation.
Any transaction will add to the $3.8 billion of healthcare services deals involving Indian companies
this year, data compiled by Bloomberg show. In 2010, Piramal Enterprises sold its branded generic-medicine unit in India to Abbott Laboratories for $3.7 billion.