INDIA BUSINESS WORLD OCTOBER (1st - 20th) 2007
The Month that was ...
LUPIN MAKES JAPANESE DEBUT WITH KYOWA BUYOUT
Indian pharmaceutical company Lupin is entering Japan, the world's second largest drug market, by acquiring a generic pharma company, Kyowa Pharmaceutical Industry, for $60 million. With this, Lupin has become the first Indian pharma company to enter the tightly- regulated Japanese market.
Kyowa, ranked among the top ten generic firms in Japan, has an annual turnover of 7.8 billion yen, or about Rs 250 crore. Its product range includes psychiatry, cardiovascular and digestive treatments under Amel brand. Lupin said in a statement the brand was "recognised and respected as a synonym for quality generics." "The generic drug market in Japan is growing and the government supports the generic drug movement in the country. We are entering the market at the right time," Lupin managing director Kamal Sharma said.
Kyowa had strengths in product development, manufacturing and marketing its products across Japan, Mr. Sharma said, adding that Lupin would be able to add significant value through its strengths in research and global marketing. Japan has a sizeable but very fragmented generic industry. A few players, such as Sawai and Towa, are attempting to boost the image of the sector, but most companies are undercapitalised and unable to make the necessary investments, industry analysts said. Currently, only a handful of overseas generic manufacturers have direct operations in Japan.
According to Japan Generic Pharmaceutical Manufactures Association (JGPMA), generics account for about 16% of the market by volume and around 6% by value. The government has recently introduced new 'stable supply' rules, to be implemented by 2011, in order to create a more high-profile, better-regarded local generic industry.
"This is a very significant part of our strategy to tap leading global markets. It establishes a beachhead in the second-largest pharmaceutical market in the world. This acquisition is a signal of our long-term commitment to the Japanese healthcare market," Lupin chairman Desh Bandhu Gupta said in a statement.
Most nationwide wholesalers in Japan distribute Kyowa products to hospitals, medical practitioners and pharmacies, thereby making its products widely available, Lupin said. Headquartered in Osaka, the business had been so far controlled by the Sugiura family. Its drug unit and research centre are located in Hyogo Prefecture. In 1998, Lupin had acquired the generics business of Boehringer Manheim, which expanded the company's psychiatric product kitty. Earlier, the company had also acquired Ospolot business from Bayer, sales business of Uji Pharmaceuticals and the sales right to all prescription drugs of MG Pharma.
|
