The Hindu Business Line : Lupin takes majority stake in Japanese generic co

Mumbai, Oct 10 Lupin Ltd has acquired close to 80 per cent stake in Japanese generic company Kyowa Pharmaceutical Industry Co Ltd, for an undisclosed amount. The Mumbai-based drug-maker is set to pick up the remaining 20-odd per cent equity as well in due course, a source familiar with the development told Business Line.

Japan has been attractive for Indian drug-makers, since it is the world’s second largest individual market for medicines at $60 billion. Domestic drug-makers such as Zydus Cadila, Dishman Pharma and Ranbaxy have forayed into this market through acquisitions or alliances.

And analysts point out that the Japanese government’s aim to raise the share of generic drugs to about 40 per cent of the pharma market, compared to the current 16 per cent, is part of the attraction.

Kyowa has sales of ¥7.4 billion (about $70 million) for the year ended March 2007 and develops, manufactures and markets a range of generics in Japan, a note from Lupin said.

Product portfolio

Kyowa’s product portfolio covers psychiatry and neurological therapeutic categories, besides medicines in cardiovascular, respiratory and allergy, and digestive system categories.

In fact, Lupin had forged a marketing alliance with Kyowa in August 2005, where the two companies were to market finished dosage forms or formulations in Japan. The agreement covered the cardiovascular segment (CVS), central nervous system (CNS), gastro-intestinal (GI) and anti-infective segments, company officials had then said. As per the agreement, Lupin was to develop the product and manufacture it at its plants in Goa or Mandideep in Madhya Pradesh, while Kyowa was to take care of regulatory issues, besides the marketing, the company management had said.

Lupin shares were marginally up on the BSE at Rs 588 on Wednesday.