Pharmaceutical firm Lupin will acquire Japan's I'rom Pharmaceutical Co for an undisclosed sum as it looks to expand footprint in the country.
The company's Japanese subsidiary Kyowa Pharmaceutical Industry Co has entered into an agreement with I'rom Holdings Co Ltd (IH), an integrated healthcare provider to acquire upto 100 per cent of the outstanding shares of its subsidiary,I'rom Pharmaceuticals (IP), Lupin said.
IP is a specialty injectables company and had clocked a revenue of 5.3 billion yen in the 2010-11 fiscal.
"So far we have been strong in the oral segment in Japan. The acquisition will get us into injectables. We expect IP's sales to be nearly USD 75 million for the financial year ending March 31, 2012," Lupin President (Asia Pacific, Middle East, Africa and Latin America) Vinod Dhawan told PTI.
He, however, declined to disclose the value of the acquisition citing company policy.
"Japan is a growth market of strategic focus for Lupin. IP's strong presence in DPC (diagnosis procedure combination) hospital segment in Japan, through its line of injectable products, will give us access to USD 11 billion market," he added.
The acquisition will not only strengthen Lupin's presence in the Japanese market but would also provide for a stronger growth footprint in this priority market, he added.
Commenting on the development, Kyowa President and Representative Director Ray Tsunoda said: "The acquisition will allow Kyowa and IP to leverage on their strengths and competencies to create meaningful synergies that would augment Lupin's growth in the Japanese generics market."
IH Chairman and Representative Director Toshinori Mori said it is in the interest of IP to pursue growth opportunities as a member of Lupin "in the light of the success of Indian generic pharmaceutical companies across the world".
In a separate agreement, Kyowa has also entered into a strategic alliance under which it will get comprehensive operational support from IH's site management organisation (SMO) subsidiary I'rom Co for clinical studies conducted it in the Japanese market.
"Meanwhile, IH will continue to focus its management resources on reinforcement of clinical trial services business for major pharmaceutical companies, including Lupin group," Mori added.
Shares of Lupin Ltd were today trading at Rs 443.45 in the morning trade on BSE, down 2.68 per cent from its previous close.
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