With this acquisition, Kyowa will rank sixth amongst generic companies in Japan
Lupin’s Japanese subsidiary Kyowa Pharmaceutical Industry has entered into a strategic asset purchase agreement with Shionogi & Co to acquire 21 long-listed products from the Japanese pharma company, effective December 1, 2016, subject to certain closing conditions and regulatory approvals including the transfer of marketing authorisation of the products to Kyowa.
As a part of this deal, Shionogi would transfer 21 long-listed products to Kyowa, the Japanese subsidiary of Lupin. Kyowa is amongst the top 10 generic companies in Japan and a market leader in Central Nervous System (CNS) space well known for its ‘AMEL’ brand, in addition to other generic pharma products in its portfolio. With this acquisition, Kyowa will rank sixth amongst generic companies in Japan.
The 21 products cover therapy areas such as CNS, oncology, cardiovascular and anti-infectives. Reportedly, these 21 products had sales of ¥9, 400 million ($90 million) collectively on NHI price basis.
Commenting on the acquisition, Nilesh Gupta, Managing Director of Lupin said, “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.”
Dr Fabrice Egros, President – Asia Pacific & Japan, Lupin commented, “Japan is a very important market for us. The acquisition strongly supports our future growth plans and the brands have robust synergies with Kyowa’s existing portfolio which will enable Lupin to build a wide customer base across the key therapies.”
Dr Isao Teshirogi, President & CEO of Shionogi 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. Therefore, 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.”
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 from Kyowa.