Drugmaker Lupin said it will sell its Japanese injectables business and related assets to a unit of UAE-based pharmaceuticals major Neopharma.
As part of the transaction, Lupin's Japanese subsidiary Kyowa Pharmaceutical Industry Co. Ltd will sell Kyowa Criticare Co. Ltd to Neo ALA Co. Ltd, said Lupin in a stock-exchange filing. The financials details of the deal were not disclosed.
The divestment will help Lupin streamline its Japan operations and bring sharper focus on building a hybrid branded and generics pharma model in Japan, said Fabrice Egros, president, Asia-Pacific, Lupin, and representative director, Kyowa.
Kyowa Criticare's plant and associated facilities are involved in the sales and contract manufacturing of injectable products.
Suresh Nandiraju, chief operating officer of Neopharma, said that the acquisition will strengthen its products offerings in Japan.
The transaction has received Lupin board's approval and is subject to customary closing conditions.
In the year ended March 2019, Japan contributed 13% to Lupin's global revenue, the company's annual report shows. Kyowa Pharmaceutical and Kyowa CritiCare generated 33,889 million Japanese yen in revenues during the period, a decline of 4% over the previous year.
Japan remains Lupin's third-largest market but continued to face fierce price pressures in 2018. Japan is the third-largest pharmaceutical market in the world, with sales of around $91 billion
In 2016, Lupin had agreed to purchase 21 branded drugs from Japan's Shionogi & Co. Ltd for 15.4 billion yen (about $150 million) to expand in Japan.
Lupin enjoyed an advantage in Japan over its other Indian peers after it acquired a controlling stake in Japan’s Kyowa in 2007.
In March 2016, Sun Pharmaceuticals acquired 14 prescription drugs from Novartis in Japan for $293 million. Last year, Sun Pharmaceutical Industries Ltd agreed to buy Japan's Pola Pharma Inc. for $1 million (Rs 7.1 crore).