Ranbaxy to exit Japanese JV with Nippon Chemiphar

Ranbaxy Laboratories plans to exit its Japanese joint venture — Nihon Pharmaceuticals Industry (NPI)— by selling 50 per cent stake after the Indian drug maker was acquired by Japanese drug major Daiichi Sankyo. Ranbaxy will sell the stake back to its Japanese partner Nippon Chemiphar.

Ranbaxy’s investments in the six-year-old joint venture for the 50 per cent stake is estimated at Rs 30.5 crore. Industry sources said the deal was unlikely to impact Ranbaxy’s financials as revenues and investment in the joint venture was not significant. Sources said revenues from NPI were only $25 million in 2007 through sale of four generic products.

Nippon Chemiphar, a Tokyo stock exchange-listed mid-sized drug company, competes with Ranbaxy’s owner Daiichi Sankyo in several therapeutic categories in the Japanese market.