March 29, 2016
Mumbai, India-based drug manufacturer Sun Pharmaceutical Industries Ltd has acquired 14 established prescription brands from Novartis AG and Novartis Pharma AG of Japan for $293 million.
Sun is not new in the field of big ticket overseas acquisitions. The last one was the $454-million buy of Israeli drug-maker Taro. In addition, almost a year ago, Sun closed its $4 billion merger of troubled domestic drug company Ranbaxy.
About the latest buy, a note from Sun said the Novartis brands had combined annualized revenues of around $160 million and addressed medical conditions across several therapeutic areas. Although Sun did not disclose the segments these brands belonged to, neither did it comment on how it would fund the acquisition.
According to the terms of the agreements, Novartis will continue to distribute these brands for a certain period. The acquired brands will be marketed by a local marketing partner under the Sun Pharma label.
Managing Director of Sun Pharma, Dilip Shanghvi, said that Japan was a strategic market for the company. “This acquisition marks Sun Pharma’s foray into the Japanese prescription market and provides us an opportunity to build a larger product portfolio in the future,” he added.
Industry estimates peg the Japanese pharmaceutical market at $73 billion, accounting for over seven percent of the $1-trillion global pharmaceutical market. However, the Japanese market is not an easy one to navigate.