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| Lupin buys cholesterol drug for $39 million |
| PB Jayakumar & Joe C Mathew / Mumbai/Delhi Sep 29, 2009, 00:14 IST |
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Buys US rights for Oscient Pharma's Antara.
Pharmaceutical major Lupin has acquired the US rights for a cholesterol lowering drug, Antara (Fenofibrate capsules, 43 mg and 130 mg), from bankrupt US drug company Oscient Pharmaceuticals for close to $39 million (Rs 188 crore).
The drug had $70 million (Rs 337.5 crore) worth of sales in the US market in 2008, data from drug sales tracking agency IMS show.
Lupin acquired the drug in a bidding process on September 25 under the procedures of the US Bankruptcy Court. Lupin outbid Akrimax Pharmaceuticals and private equity player Paul Capital to acquire Antara, Vinita Gupta, group president and chief executive of Lupin told Business Standard.
“The drug has strong brand equity, with primary care physicians, and has patent protection till 2020. We plan to strengthen the marketing of this product by doubling our US sales team to about 120 people,” she said.
Antara currently has 4.5 per cent share of the Fenofibrate market worth $1.9 billion and grew 20 per cent in revenue in the last year.
Gupta said the company would fund the acquisition from internal accruals. Lupin, whose turnover is Rs 3,900 crore, had created a Rs 1,000 crore war chest fund two years earlier, as part of an aggressive acquisition strategy.
Lupin paid $38.6 million for the product and related assets, inclusive of inventory, said sources.
Lupin had previously filed a marketing application (ANDA) with the US Food and Drug Administration (FDA) to market generic versions of Fenofibrate capsules, 43 mg and 130 mg. On September 21, prior to the acquisition of Antara, Lupin sold its ANDA to Dr Reddy’s Laboratories.
The company has also settled the pending litigation with Oscient Pharmaceuticals regarding the generic version. Lupin had challenged the patents of the drug and following this, Oscient sued Lupin.
Company sources said the Antara acquisition enables Lupin to enter the primary care market with a three-product portfolio. Lupin’s Suprax tablets and Allernaze have strong potential in primary care. Unlike most other Indian companies selling generics drugs in the US market, Lupin sells the drugs by marketing to physicians. The company is ranked ninth in the US market in terms of number of prescriptions in a year. The brand business contributed around $74 million (Rs 356 crore), 27 per cent of Lupin’s overall US business.
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