The acquisition gives Sun Pharma a portfolio of dermatology products and two manufacturing facilities in Saitama with capabilities to manufacture topical products and injectables.
Sun Pharma, India's largest drugmaker has entered into a definitive agreement to acquire Japan-based Pola Pharma.
Sun Pharma will pay $1 million to acquire the Japanese drugmaker, which is debt-free. The transaction is expected to close on or before January 31, 2019.
The acquisition gives Sun Pharma a portfolio of dermatology products and two manufacturing facilities in Saitama with capabilities to manufacture topical products and injectables. The Japanese drugmaker also has R&D capabilities to develop new technologies and formulations.
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.
Sun Pharma forayed into the Japanese prescription market in 2016 with the acquisition of 14 established prescription brands from Novartis.
The size of the Japanese pharmaceutical market is estimated at $84.8 billion, accounting for 7.5 percent of the $ 1.13 trillion global pharmaceutical markets, as per IQVIA
"This acquisition is in line with our strategy to strengthen our global dermatology presence," said Kirti Ganorkar, Executive Vice President, Sun Pharma.
"(the acquisition) will help us to launch our speciality and generic dermatology products in the Japanese market in future," Ganorkar added."We also get access to local manufacturing capability enabling us to serve the Japanese pharmaceutical market more effectively," he said.