Sun Pharma enters into Japanese market

Sun Pharmaceutical Industries (SPIL) agreed to buy 14 prescription brands from Novartis AG in a USD 293 million (Rs 19458 million) cash deal. The company will be able to expand its business to Japan. It will also allow company to enlarge its product portfolio in near term.The share price of SPIL increased by 2.58 per cent on bourses in early trades; and is trading at Rs 807 on an intraday basis.

According to IMS data, SPIL is hoping to beat the leading US pharmaceutical market, garnering a business of about USD 73 billion (Rs 4848 billion), which is about 7 per cent of the global market in the new geography.

SPIL’s new acquired brands will have combined annualised revenue of about USD 160 million (Rs 10626 million). After acquisition of brands, Novartis will continue to distribute these brands for a certain period till all the marketing authorisations are transferred to SPIL’s subsidiary. The acquired brands will be marketed by a reliable and established local marketing partner under the Sun Pharma label. The local marketing partner will also be responsible for distribution of the brands.

Lupin is the only Indian pharmaceutical company that has presence in the Japanese market. The company has acquired two companies in Japan: I’rom Pharmaceutical  Co.;and Kyowa Pharmaceutical Industry.

Novartis is a world leader in the research and development of products designed to protect and improve health and well-being. The company has core businesses in pharmaceuticals, vaccines, consumer health, generics, eye care and animal health.

Sun Pharmaceutical Industries provides high quality, affordable medicines, trusted by customers and patients in over 150 countries across the world. The company's global presence is supported by 49 manufacturing facilities spread across 6 continents; R&D centres across the globe; and a multi-cultural workforce comprising over 50 nationalities.