Drug major Lupin will acquire 21 generic brands of Japan’s Shionogi & Co for 15.4 billion yen ($150 million), or Rs 1,000 crore, strengthening its position in the world’s second-largest pharmaceutical market.
Drug major Lupin on Tuesday said it has agreed to buy a portfolio of 21 generic brands from Japanese company Shionogi & Co for 15.4 billion yen ($150 million, or about Rs 1,000 crore), to strengthen its presence in the world’s second largest pharmaceutical market.
By size, the $110-billion Japanese pharmaceutical market stands second only to the US, and is largely brand focused. The acquisition by Lupin’s Japanese subsidiary Kyowa Pharmaceutical will be effective from December 1, 2016 and is subject to certain closing conditions and regulatory approvals, including the transfer of marketing authorization of products.
Lupin said the 21 products it is acquiring from Shionogi had sales of $90 million collectively in the year ended March, covering therapeutic areas such as central nervous system (CNS), oncology , cardiovascular and anti-infectives.
With this acquisition, Lupin will rank sixth among generic companies in Japan.At present, the company is ranked ninth and is a market leader in the CNS space with its AMEL brand, in addition to other generic pharmaceutical products in its portfolio.
“This acquisition marks Lupin’s foray into the Japanese branded market in line with our aspirations to build and strengthen our speciality business globally. The new branded product portfolio has a strong fit with Lupin’s Kyowa business, as it adds depth and reach to its current CNS portfolio and other therapy areas,“said Lupin MD Nilesh Gupta.
Shionogi, like other big Japanese drug makers, is increasingly focusing on drug discovery and branded portfolio, and has been offloading generic drugs.
Shionogi president & CEO Dr Isao Teshirogi said, “In the Japanese domestic prescription pharmaceutical market, the core mission of drug discovery-based pharmaceutical companies, such as Shionogi, is to create high-quality new drugs and to make them available to patients. “
