Piramal Healthcare has acquired New York-based Minrad International, a manufacturer of generic inhalation anaesthetic drugs for $40 million.

Under the arrangement, the shareholders of Minrad will receive $0.12 a share in cash and Piramal will also acquire Minrad's 8 per cent senior secured convertible notes from the note holders.

According to company official, 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 anesthetics 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 US stock exchanges.
The acquisition is expected to close by February-March 2009.

Reliance Money, one of the leading broking house, has put a hold rating on Piramal Healthcare with a target of Rs 248 in its December 26, 2008 research report.