Drug major Lupin on Thursday said it will divest its Japanese injectables business to neo ALA Co Ltd, a wholly-owned subsidiary of Abu Dhabi-headquartered Neopharma group. Lupin has entered into a definitive agreement through its Japanese subsidiary Kyowa for the said deal.
"Under the terms of the agreement, Lupin has agreed to sell all the issued and outstanding share capital in Kyowa Criticare Co Ltd to neo ALA Co Ltd. The transaction is subject to customary closing conditions and has been approved by the board of directors of Lupin," Lupin said in a regulatory filing.
Lupin, however, did not disclose the financial details of the transaction.
This transaction does not involve or affect the other operations of Kyowa, namely research, manufacturing, marketing and distribution of oral solids and other dosage forms in Japan, it added.
Lupin said the plant and associated facilities are based out of Atsugi, Japan and has been engaged in sales and contract manufacturing of injectable products to meet various medical needs.
"The divestiture of our injectables business in Japan is a step towards streamlining our Japan operations and bringing sharper focus on building a hybrid (brand/ generics) pharma model in Japan," Fabrice Egros, President Lupin APAC and Representative Director— Kyowa said.
Suresh Nandiraju, Chief Operating Officer of Neopharma, said, "this acquisition is synergetic and will strengthen our product offerings in the Japanese market, a focus market for Neopharma group for driving long-term, sustainable growth by leveraging our global presence."
Shares of Lupin were trading 0.38 per cent higher at Rs 738 apiece on BSE.
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