Kyowa develops, manufactures and sells branded and generic pharmaceutical products for patients in the Japanese market
India-based pharmaceutical company Lupin has agreed to sell its entire stake in its Japanese subsidiary Kyowa Pharmaceutical to Unison, a private equity fund in Japan, for JPY57.36bn ($525m), subject to closing adjustments.
The transaction, which has been approved by the Lupin’s board of directors, is expected to be completed subject to customary closing conditions including approval by Lupin’s shareholders.
Lupin CEO Vinita Gupta said: “We are very pleased to partner with Unison, a leading healthcare-focused private equity player. This transaction will build upon the strong foundation our team has established in Japan.
“We acquired Kyowa in 2007 and since then have made a material difference to the Japanese healthcare system with the affordable medicines we brought to market.
“This transaction is aligned with our vision to focus on our key markets and strategic priorities to achieve sustainable growth in the mid to long-term. The deal proceeds will be utilized to strengthen Lupin’s balance sheet as well as provide growth capital to support organic and inorganic initiatives for our focus markets.”
Kyowa owns manufacturing facilities at Sanda and Tottori and a research centre at Osaka
Under the terms of the agreement, Lupin, through its subsidiary Nanomi, will divest its total of 99.82% stake in Kyowa to Plutus, an entity of Unison.
Established in 1954, Kyowa is engaged in developing, manufacturing and selling branded and generic pharmaceutical products for patients in the Japanese market.
In addition, Kyowa offers a diverse product portfolio that covers cardiovascular, gastroenterology and a variety of other segments, including central nervous system space where key products are promoted under the AMEL brand.
Unison founding partner Tatsuya Hayashi said: “We are delighted to welcome Kyowa into our portfolio and support its next phase of growth, both in its existing business, as Kyowa continues to centre its strategy of strengthening its hybrid (brand/generics) pharma model in Japan, and in expanding its influence in the CNS space to beyond drugs.
“We look forward to actively working with Kyowa to leverage our unique set of resources in the healthcare market – including our own portfolio companies, and our network of experienced health care advisors and strategic partners – to enable Kyowa’s vision of growth.
“We also look forward to supporting Kyowa’s partnership with Lupin and exploring opportunities for Unison to collaborate further in the healthcare sector with Lupin and its unparalleled global network in the healthcare industry.”