Pharma major Lupin Ltd said on Monday it has closed a definitive agreement for the sale of its Japanese injectables business and related assets to Neo Ala Co Ltd, a wholly-owned subsidiary of Neopharma Group which is the UAE's largest pharmaceutical manufacturer headquartered in Abu Dhabi.
The plant and associated facilities are based out of Atsugi in Japan. It has been engaged in sales and contract manufacturing of injectable products to meet various medical needs.
"We wish to inform you that the customary closing conditions for the said transaction were completed on Monday," Lupin informed stock exchanges in regulatory filings. "Consequently, Kyowa Criticare Co Ltd has ceased to be a subsidiary of the company."
Under the terms of the agreement, Lupin has agreed to sell all the issued and outstanding share capital in its subsidiary Kyowa Criticare Co Ltd to Neo Ala.
The transaction does not involve or affect the other operations of Kyowa -- research, manufacturing, marketing and distribution of oral solids and other dosage forms in Japan.
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Lupin believes the divestiture of its injectables business will help streamline the Japan operations and bringing a sharper focus on building a hybrid (brand/generics) pharma model.
On the other hand, Neopharma believes the acquisition is synergetic and will strengthen its product offerings in the Japanese market, a focus market for Neopharma group for driving long-term, sustainable growth by leveraging its global presence.
Lupin is the eighth largest generics pharmaceutical company by revenues globally.
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