New Delhi: Sun Pharma on Monday said it will acquire Japan-based Pola Pharma for around $1 million to strengthen its presence in dermatology segment across the globe.
The company has entered into a definitive agreement to acquire Pola Pharma, which is engaged in research and development, manufacture, sale and distribution of branded and generic products in Japan, Sun Pharmaceutical Industries said in a statement.
Pola Pharma's portfolio mainly comprises dermatology products. It has two manufacturing facilities in Saitama with capabilities to manufacture topical products and injectables.
It also has R&D capabilities to develop new technologies and formulations.
"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 launch our speciality and generic dermatology products in the Japanese market in future," Sun Pharma Executive Vice-President Kirti Ganorkar said.
Sun Pharma Japan Country Head Junichi Nakamichi said that by combining its global strengths with Pola Pharma's local expertise, the company will have a great opportunity to further strengthen its presence in Japan, especially in dermatology.
Pola Pharma had an annual revenue of around $108 million and net loss of $7 million for the 12 months ended December 2017 on a consolidated basis.
"The equity consideration, on the debt-free and cash-free basis, for the 100 per cent stake in Pola Pharma is around $1 million," Sun Pharma said.
The transaction is expected to close on or before January 31, 2019, subject to completion of closing conditions, it added.
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 around 7.5 per cent of the $1.13-trillion global pharmaceutical market.
Sun Pharma shares Monday ended 2.88 per cent down at Rs 510.65 on the BSE.
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Updated Date: Nov 27, 2018 11:25:36 IST