Lupin arm buys branded drugs from Japan’s Shionogi

MUMBAI: Drug maker Lupin said its Japanese subsidiary Kyowa has agreed to pay about $150 million to acquire a set of 21 products from Japanese drug maker Shionogi. The deal, to be effective from December 1, is expected to further consolidate Lupin’s ranking in the steadily growing Japanese generic drugs market. The Shionogi products had total sales of $90 million.

ET had reported in its July 27 edition that the Indian drug maker is in discussion with Shionogi. The report had named another Japanese firm Astellas, which was engaged in separate talks for sale of a few products. The deal with Shionogi is subject to certain closing conditions and regulatory approvals, including transfer of marketing authorisation of the products to Kyowa.

"The new branded product portfolio has a strong fit with Lupin’s Kyowa business, as it adds depth and reach to its current CNS (central nervous system) portfolio and other therapy areas," Lupin managing director Nilesh Gupta said in a statement.

The acquired products, mainly in areas like oncology, cardiovascular and anti-infectives, are part of the long-listed products list that are understood to be covered under the National Health Insurance plans. Shionogi said it is focusing its resources on the core therapeutic and marketing areas. Experts viewed the Japanese market as a challenging one for new entrants but has rewarding margins for those who have built their branding on quality products. Lupin’s stock slipped 1.1% to close at `1,704.35 on the Bombay Stock Exchange on Tuesday.