PIRA's acquisition of BioSyntech, while small, possibly points to PIRA's willingness to raise the risk (& potential return) profile of the company, after the sale of its Indian formulations business. We believe one cannot rule out a move to increase support to or bring back the demerged R&D unit (Piramal Lifesciences) into its fold, if the latter is unable to meet its funding needs. We maintain that while the cash from the Abbott deal (NPV of Rs483/sh) provides good downside support, the Street is unlikely to fully value this till there is more clarity on end use.
