Mumbai-based Lupin Ltd will acquire Tokyo-based I’rom Pharmaceuticals (IP) for an undisclosed amount to expand its footprint in the country. The transaction would be done through Lupin's Japanese subsidiary Kyowa Pharmaceutical Industry Co, Ltd (Kyowa), which it had acquired in 2007..
IP, subsidiary of I’rom Holdings Co, is a speciality injectable drug maker and its annual sales for the year ended March 2011 was ¤5.36 billion ($69.7 million). It has a significant presence in the DPC (diagnosis procedure combination) hospitals within Japan.
Injectable products enjoy a significant usage in the DPC Hospital segment, and the generic injectable penetration is slated to grow significantly. There are currently over 1,400 DPC hospitals in Japan, covering 35 per cent of all hospital beds nationwide, and a market size of $11-billion.
Earlier, Business Standard had reported Lupin's plan for a second acquisition in Japan for $50-100 million. The $75-billion market is the second largest in the world after the US. Though the Japanese government is taking initiatives to support generic drugs, the segment is only five per cent of the total in value terms and 19 per cent in volume terms. The government has also introduced a series of reforms to expand generic drug penetration to 30 per cent by 2012.
Vinod Dhawan, president (Asia Pacific, West Asia, Africa and Latin America) at Lupin said, “Japan is a growth market of strategic focus for Lupin. IP’s strong presence in the DPC hospital segment, through its line of injectable products, is an ideal fit with our existing oral business portfolio in the country. The acquisition will not only strengthen our presence in Japan, but also provide for a stronger footprint in this priority market.”
