Sun Pharma to acquire Japan’s Pola Pharma for $1 million
Pola Pharma was valued on a debt-free and cash-free basis, Sun Pharma says, adding it will buy 100% of the Japanese firm’s equity
New Delhi: Sun Pharmaceutical Industries Ltd has bought Japanese drugmaker Pola Pharma Inc. for $1 million as part of plans to strengthen its global presence in dermatology, the Dilip Shanghvi-promoted pharma major said on Monday.
Part of Pola Orbis group, Pola Pharma is engaged in the research and development, manufacture, sale and distribution of branded and generic products, primarily in dermatology. It has two plants in Saitama, Japan, which can manufacture topical products and injectables, and has annual revenues of approximately $108 million.
“This acquisition is in line with our strategy to strengthen our 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,” Kirti Ganorkar, executive vice-president of Sun Pharma, said in a statement. “We also get access to local manufacturing capability enabling us to serve the Japanese pharmaceutical market more effectively.” Pola Pharma will help Sun launch its speciality and generic dermatology products in Japan in future, he added.
The development comes two years after Sun Pharma, India’s largest drugmaker, entered Japan with the acquisition of 14 established prescription brands from Novartis.
Pola Pharma was valued on a debt-free and cash-free basis, Sun Pharma said, adding it will buy 100% of the Japanese firm’s equity. The deal is expected to close on or before 31 January, subject to completion of closing conditions. Pola Pharma had a net loss of $7 million for the 12 months to December 2017 on a consolidated basis.
Junichi Nakamichi, Sun Pharma’s country head for Japan, said the idea was to combine the Indian firm’s global strengths with Pola Pharma’s local expertise. “By combining Sun Pharma’s global strengths with Pola Pharma’s local expertise, we will have a great opportunity to further strengthen our presence in Japan, especially in the area of dermatology,” he 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, the Indian company said.
In 2016, a wholly owned subsidiary of Sun Pharma acquired a portfolio consisting of 14 established prescription brands from Novartis in Japan for a cash consideration of $293 million. These brands had combined annualized revenues of approximately $160 million and addressed medical conditions across several therapeutic areas.
On Monday, Sun Pharma shares fell 2.88% to ₹510.65 apiece on the BSE while the benchmark Sensex rose 1.07% to 35,354.08 points.
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