LUPIN ACQUIRES IN JAPAN
MUMBAI, India, October 10, 2007 - Lupin Limited
announced today that it has completed arrangements to
acquire a significant majority stake in Kyowa Pharmaceutical Industry Co.
Ltd. (Kyowa), a leading Japanese generics company ranked amongst the top
10 Generic Companies.Kyowa, with sales of Yen 7.4 Billion for the year ended March 2007, develops, manufactures and markets a range of generics in Japan. Kyowa has a rich product portfolio in the Psychiatry and Neurological therapeutic categories as well as in Cardiovascular, Respiratory & Allergies and Digestive system. Kyowa has a highly skilled field force. Almost all nationwide wholesalers distribute Kyowa products to hospitals, medical practitioners and Pharmacies making its products widely available and used all over Japan. Kyowa has created a strong brand identity in Japan’s generics market through its registered brand "AMEL".
Today the "AMEL" brand is recognized and respected as a synonym for quality generics. Headquartered in Osaka, the business has been built to its current stage by the Promoters, the Sugiura family. The manufacturing facilities are located in Sanda City, Hyogo Prefecture. The Research Centre located in Hyogo Prefecture has strength of about 40 personnel. The development work for products as well as the Regulatory process is handled in-house.
A part of the company’s growth has been fueled by acquisitions. In 1988, the generic business of Boehringer Manheim was acquired which expanded the Psychiatric product specialization. This was followed by the acquisition of the Ospolot business from Bayer, the sales business of Uji Pharmaceutical Co. Ltd. and the sales rights to all prescription drugs of MG Pharma Inc.
Dr. Desh Bandhu Gupta, Chairman, Lupin, said while commenting on the acquisition, "This is a very significant part of our strategy to tap leading global markets and establishes a beachhead in the second largest pharmaceutical market in the world. Kyowa has major strengths in product development, manufacturing and marketing of its products nationwide. Lupin will be able to add significant value through its strengths in R&D and global marketing, leading to major synergies. This acquisition is a signal of our long-term commitment to the Japanese healthcare market."
Mr. Y. Sugiura, Chairman, Kyowa said, "I am delighted that Lupin Limited is acquiring a majority stake in Kyowa and I am sure that with its global vision, Lupin will be able to propel Kyowa to the top league in Japan."
Although the scale of transaction is relatively small, it attracted the media attention as an example of diversifying shareholding profiles of Japanese companies. On Oct. 10, Kamal K. Sharma, managing director of Indian generic drug manufacturer Lupin Ltd., spoke in English to employees of Kyowa Pharmaceutical Industry Co. at a hotel in Osaka. Sharma told the Kyowa employees that he intended to make Kyowa, which had just been purchased by Lupin, a "leading company" through joint efforts with them. Five of Kyowa's 10 board members are Indians. After a teleconference system linking Kyowa's head office in Osaka to Lupin's headquarters in Mumbai is installed, all board meetings will be held in English. Kyowa had received acquisition offers also from Japanese and Western drugmakers. But President Kenji Watanabe accepted the proposal from the Indian firm, which gave the highest valuation to his firm. Lupin is spending nearly 10 billion yen to acquire Kyowa because it expects the Japanese market for generic drugs will grow rapidly in coming years due to the government's efforts to curb growth in healthcare spending.
Along with other major Indian firms, Lupin has been working on Japan entry since 2005 to focus on its Japanese connection. Under an alliance formed with Kyowa the firm has been planning to develop and produce on behalf of Kyowa a portion of the products that the Japanese partner will begin marketing in 2008.
Hypnotics (16)
Anti-parkinsons (13)
Anti-epileptics (10)
Anti-hypertensives (4)
Lipid-regulating (4)
Anti-tussives (2)
Sources: original, miscellaneous
