Moneycontrol Bureau
Sun Pharmaceutical Industries shares gained 2.6 percent intraday Wednesday after the company acquired 14 established prescription brands from Novartis AG and Novartis Pharma AG in Japan. The stock also saw some short covering today after yesterday's sharp sell-off.
"A wholly-owned subsidiary of Sun Pharma will acquire portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of USD 293 million. These brands have combined annualised revenues of approximately USD 160 million and address medical conditions across several therapeutic areas," says the company in its filing.
Under the terms of the agreements, Novartis will continue to distribute these brands, for a certain period, pending transfer of all marketing authorisations to Sun Pharma’s subsidiary. The acquired brands will be marketed by a reliable and established local marketing partner under the Sun Pharma label.
"This acquisition marks Sun Pharma’s foray into the Japanese prescription market and provides us an opportunity to build a larger product portfolio in the future," says Dilip Shanghvi, Managing Director, Sun Pharma.
As per December-2015 IMS Data, size of the Japanese pharmaceutical market was estimated at USD 73 billion, accounting for over 7 percent of the USD 1 trillion global pharmaceutical market.
At 09:26 hours IST, the scrip of Sun Pharmaceutical Industries was quoting at Rs 805.00, up Rs 10.95, or 1.38 percent on the BSE.Posted by Sunil Shankar Matkar
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
