Sun Pharmaceutical Industries, through one of its wholly owned subsidiaries, is set to acquire Pola Pharma, a Japanese pharmaceutical company engaged in research and development, manufacture, sale and distribution of branded and generic products.
The acquisition, which is likely to cost 100 million Japanese yen subject to closing adjustment, would be done through cash transaction.
The portfolio of Pola Pharma primarily comprises dermatology products, according to a release issued by the company.
Pola Pharma, along with its wholly owned subsidiary, is engaged in the development, manufacture and commercialisation of pharmaceutical products in Japan with focus on the dermatology segment. Pola Pharma’s product portfolio includes branded and generic products which are commercialised in Japan by its own dedicated sales force.
It has two manufacturing facilities in Saitama with capabilities to manufacture topical products and injectables. It also has R&D capabilities to develop new technologies and formulations, Sun Pharma said in a release.
“Pola Pharma had annual revenues of approximately $108 million and a net loss of $7 million for 12 months ended December 2017 on a consolidated basis. The equity consideration, on a debt-free and cash-free basis, for the 100% stake in Pola Pharma is approximately $ 1 million,” Sun Pharma said.
The transaction is expected to close on or before January 31, 2019, subject to completion of closing conditions.
Sun Pharma forayed into the Japanese prescription market in 2016 with the acquisition of 14 established prescription brands from Novartis. It said the size of the Japanese pharmaceutical market is estimated at $84.8 billion, accounting for approximately 7.5% of the $ 1.13-trillion global pharmaceutical market (as per IQVIA Market Prognosis, September 2017).
Kirti Ganorkar, executive vice-president of Sun Pharma, said in the release that this acquisition is in line with the company’s strategy to strengthen the firm’s global dermatology presence.
“Pola Pharma is a leading dermatology company and it will help us to launch our speciality and generic dermatology products in the Japanese market in future. We also get access to local manufacturing capability enabling us to serve the Japanese pharmaceutical market more effectively,” Ganorkar said.