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Ranbaxy has sold its 50% stake in the JV company, Nippon Pharmaceutical Industry & Company Ltd, to Nihon Chemiphar.

Ranbaxy Laboratories, which was bought out by Japanese major Daiichi Sankyo in 2008, has announced the termination of its joint venture with Nihon Chemiphar, a Tokyo based mid-sized pharma company.

Ranbaxy has sold its 50% stake in the joint venture company, Nippon Pharmaceutical Industry & Company Ltd, to Nihon Chemiphar. The Japanese firm has reportedly paid $18 million to Ranbaxy for its stake. Following the deal, Nippon Pharmaceutical becomes a wholly-owned subsidiary of Nihon Chemiphar.

Ranbaxy said, in a statement, “It was amicably concluded that it would be in the best interest of both companies to continue their generic businesses independently.” Ranbaxy will continue to supply generic products to Nihon Chemiphar in the transition period. Japan is the second largest pharma market in the world.