Published Date : Nov 16, 2015
Since the previous Indian buyout in the Japanese Pharma sector that occurred over four years ago, there is a growth in the number of Indian Pharma firms that are looking for acquisition in Japan. Japan is currently ranked second in the largest drug markets in the world.
The second buyout made by Lupin Ltd., the Mumbai-based pharma company, was in 2011 in Japan. After that, none of the major Indian drug makers have been successful in creating a significant footprint in the Japan pharmaceutical market, which is currently worth around US$115 bn.
In the latest announcement, Sun Pharmaceuticals Industries, Inc., said that it is planning to buy out a Japanese drug portfolio of Swiss, created by Novartis. The buyout will help Sun Pharma gain entry into the Japanese generic drugs markets.
Sun Pharma had recently taken over Ranbaxy Ltd. for US$4 bn in the past year. Sun also has announced plans to gather Rs. 12,000 crore using convertible debentures. They might also be making use of a qualified institutional placement for the purpose of acquisitions and expansion.
Kewal Handa, former MD of Pfizer Ltd.’s Indian unit for the largest drug maker for the U.S., said that the growth factor will essentially come from a growing population of generic drugs. This is due to a greater interest show by the nation’s government in order to increase generic shares and lessen the overall expenditures made by patients on healthcare.
In 2013, the Japanese drug sales reached US$115 bn, and holds for almost 10% of the global pharma market, in comparison to the U.S. share of 38.4% and the 20.7% shown by Europe for the same year.