Ranbaxy Laboratories, a subsidiary of Japanese drug major Daiichi Sankyo, has exited from its 50:50 joint venture with Daiichi's smaller rival Nippon Chemiphar in Japan.
The company has agreed to sell its entire stake in the JV -- "Nihon Pharmaceutical Industry Company " (NPI) -- to Nippon Chemiphar for an undisclosed amount, said a statement from the company.
Since Daiichi became its majority shareholder, Ranbaxy has been hinting at an exit from the joint venture. The company had also maintainted that the settlement would be amicable.
Ranbaxy, one of the first entrants into Japan's drug market -- which is the world's second biggest after US -- had set up NPI as a 10 per cent equity partner in 2002. Three years later, it increased its stake holding to 50 per cent and became an equal partner in the venture.
Even after the dissolution of the joint venture, the existing generic products being manufactured and supplied from Ranbaxy's manufacturing plants in India, will continue to be supplied to Nippon for some time, to enable a smooth transition, Ranbaxy said.
Nippon Chemiphar Company, founded in 1950, is a medium-sized Japanese pharmaceutical company, headquartered in Tokyo..
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(Updated at 1218 hrs)
New Delhi-based pharmaceutical firm Ranbaxy Laboratories said it would dissolve its joint venture with Japan-based Nippon Chemiphar and sell off its entire stake to its partner.
After the stake sale, the joint venture known as Nihon Pharmaceutical Industry Company will become a full subsidiary of Nippon Chemiphar.
Ranbaxy and Nippon both held a 50 per cent stake in the JV which manufactures generic drugs.
