Lupin acquires US-based Symbiomix Therapeutics

Lupin is an India-based pharma giant has acquired Symbiomix Therapeutics a US-based drugmaker to expand the company's Women health segment.  

This deal was for a cash consideration of USD 150 million which includes an upfront payment of USD 50 million and other time-based payments. Also, it will make certain sales-based contingent payments too. Further, this acquisition is funded by internal accruals, the company said in a filing to the bourses.

Symbiomix Therapeutics is focused on bringing innovative therapies for gynaecological infections and recently in September 2017 its lead product Solosec oral granules which are used in a treatment of bacterial vaginosis is approved by USFDA. Bacterial vaginosis is one of the most common vaginal infections in the US that impacts ~21 million women in the US. 

With this Lupin expects to hit 6 million prescriptions for Solosec as it is the only oral-dose treatment option for the disease currently and thus with the exclusivity Lupin expects it to take significant share in the gynaecological market, said Vinita Gupta, CEO Lupin in the statement.

Going ahead, Lupin expects Solosec contribution to revenues to reach USD 100 million per annum with its ramp up in coming 3-4 years. Also, Ramesh Swaminathan, CFO and Executive Director of Lupin added that company have the capacity to leverage its balance sheet to a USD 1 billion, but it will be spread over several tranches. The sweet spot still remains the USD 150-200 million range.

The stock has opened at Rs. 1,056 and touched a High/Low of Rs.1,064.1/1,053.2 and at 12:03 pm the stock is quoting at Rs.1,058.5/share on Thursday.