Zydus Cadila exits Japanese market, 7 years after entry

MUMBAI: Seven years since Gujarat-based Cadila Pharma announced its decision to enter Japan; the pharma company has decided its time to move out of the second largest pharma market in the world. On Monday Zydus Cadila said that it has decided to exit Japan, without divulging any further detail.

“The company has recently completed portfolio and strategy review of its business and has decided to exit from its business in Japan, which is through 100% subsidiary company”, Cadila informed the Bombay Stock Exchange.

In April 2007, Zydus had picked up 100% stake in Japan’s Nippon Universal Pharmaceutical Ltd. At the time of the acquisition Cadila had said that the buyout will provide it critical access to a ready manufacturing and marketing bases as well as a strong distribution reach.

“Nippon reaches out countrywide to more than 4000 hospitals and clinics. This is expected to provide a fillip to the group's operations in a market that is highly complex and dominated by local pharma companies,” Zydus had said in its 2007 press release.

It said that Nippon would provide an opportunity for the group to establish itself in Japan's rapidly evolving generics space. Zydus had also identified a new product development programme “that will feed at least 5 to 6 products each year to their portfolio and build basket of 40-50 products over the next 3 to 4 years”.