Sun Pharmaceutical Industries said it agreed to acquire Pola Pharma Inc, a Japanese pharmaceutical company engaged in the research and development, manufacture, sale and distribution of branded and generic products in Japan for $1 million.
Pola Pharma had annual revenues of approximately US$ 108 million and net loss of US$ 7 million for the 12 months ended Dec 2017 on a consolidated basis.
The valuation has been done on a “debt free and cash free basis”, the company added, and that it will buy 100% of the Japanese company’s equity.
The portfolio of Pola Pharma primarily comprises dermatology products.
The company, part of POLA ORBIS Group, 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.
Kirti Ganorkar, Executive Vice President of Sun Pharma said the acquisition was in line with her company’s plan to strengthen its dermatology presence globally.
“Pola Pharma is a leading dermatology company and it will help us to launch our speciality and generic dermatology products in the Japanese market in future. We also get access to local manufacturing capability enabling us to serve the Japanese pharmaceutical market more effectively,” she said.
Junichi Nakamichi, Country Head of Japan, Sun Pharma said the idea was to combine Sun Pharma’s global strengths with Pola Pharma’s local expertise.
The transaction is expected to close on or before Jan 31, 2019, subject to completion of closing conditions.
Sun Pharma entered 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 US$ 84.8 billion, accounting for approximately 7.5% of the US$ 1.13 trillion global pharmaceutical market, the Indian company said.