Lupin to acquire 21 branded products from Japan's Shionogi
Pharma company Lupin's Japanese subsidiary Kyowa Pharmaceutical Industry has entered into a strategic asset purchase agreement with Shionogi & Co., on August 1.
The company in a filing to the Bombay Stock Exchange (BSE) on Tuesday said," Under the terms of this agreement, Kyowa will book the sales of the 21 products after December 1, 2016, and Shionogi will receive 15.4 billion yen (nearly $150 million) from Kyowa."
Shionogi is a research-driven pharmaceutical company headquartered in Osaka in Japan and will transfer 21 products to Kyowa. The 21 products cover therapy areas such as Central Nervous System (CNS), Oncology, Cardiovascular and Anti-infectives.
Kyowa is amongst the top 10 generic companies in Japan and a market leader in Central Nervous System (CNS) space. With this acquisition, Kyowa will rank sixth amongst generic companies in Japan.
Commenting on this development, Lupin's managing director Nilesh Gupta said in a statement, "This acquisition marks Lupin’s foray into the Japanese Branded market in-line with our aspirations to build and strengthen our specialty 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,”Gupta further added.
"...I’m very pleased that this agreement with Kyowa could make both aspects of our mission a reality, allowing us to pursue innovative drug discovery with an even more intense focus, while ensuring that our high quality long-listed drugs continue to be delivered to patients to meet their unmet needs," Shionogi's president and chief executive officer Dr Isao Teshirogi said in a statement.
Lupin is the fifth largest and fastest growing top 10 generics player in the US and is the third largest Indian pharmaceutical company by sales globally.
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At 11:28 hours, the stock of Lupin was trading down 0.72% or Rs 12.35 at Rs 1,711.00 on the BSE.