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Lupin’s Japanese subsidiary Kyowa Pharmaceutical Industry Company has entered into an agreement with I’rom Holdings Co, an integrated healthcare provider to acquire up to 100% of the outstanding shares of its subsidiary, I’rom Pharmaceuticals
New Delhi: Pharmaceutical major Lupin will acquire Japan’s I’rom Pharmaceutical Company for an undisclosed sum as it looks to expand its footprint in the country, reports PTI.
The company’s Japanese subsidiary Kyowa Pharmaceutical Industry Company has entered into an agreement with I’rom Holdings Co (IH), an integrated healthcare provider to acquire up to 100% of the outstanding shares of its subsidiary, I’rom Pharmaceuticals (IP), Lupin said.
IP is a specialty injectables company and had clocked revenues 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 $75 million for the financial year ending 31 March 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 $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,” Mr Mori added.
Shares of Lupin were trading at Rs444.25 in the noon trade on the BSE today, down 2.50% from its previous close.