Indian pharma Lupin has entered into a definitive agreement to sell its Japanese injectables business through its Japanese subsidiary Kyowa (Kyowa Pharmaceutical Industry). The company will also sell all related assets in Japan to Neo ALA, a wholly-owned subsidiary of Neopharma group, a UAE-based pharmaceutical manufacturer.
The plant and associated facilities are based out of Atsugi, Japan, and has been engaged in sales and contract manufacturing of injectable products to meet various medical needs.
Under the terms of the agreement, Lupin has agreed to sell all the issued and outstanding share capital in Kyowa Criticare to Neo ALA. The transaction is subject to customary closing conditions, but has already been approved by the Board of Directors of Lupin.
Suresh Nandiraju, COO of Neopharma, said: "This acquisition is synergetic and will strengthen our product offerings in the Japanese market, a focus market for Neopharma group for driving long-term, sustainable growth by leveraging our global presence."
This transaction does not involve or affect the other operations of Kyowa, namely research, manufacturing, marketing and distribution of oral solids and other dosage forms in Japan.
"The divestiture of our injectables business in Japan is a step towards streamlining our Japan operations and bringing sharper focus on building a hybrid (brand/generics) pharma model in Japan,” said Fabrice Egros, President Lupin APAC and Representative Director of Kyowa. “We believe that Neopharma group is the right partner for Kyowa Criticare as they appreciate the strategic importance of this business unit and would be able to deliver value to business partners and customers, leveraging Kyowa Criticare's people who are critical assets."