India's drugmaker taps into dermatology market with acquisition of Japan-based Pola Pharma
Mumbai-based Sun Pharma has entered into a definitive agreement to acquire Pola Pharma, a Japanese pharmaceutical company engaged in research and development, manufacture, sale and distribution of branded and generic products in Japan. Pola's portfolio primarily comprises dermatology products.
Pola Pharma, part of Pola Orbis Group, has two manufacturing facilities in Saitama (a suburb of Tokyo) 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, Sun Pharma, said, this acquisition is in line with Sun's strategy to strengthen its global dermatology presence.
"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," he explained.
Pola Pharma had annual revenues of approximately US$108 million and net loss of $7 million for the 12-month period ended December 2017, on consolidated basis. The equity consideration, on debt free and cash free basis, for the 100% stake in Pola Pharma is approximately $1 million.
The transaction is expected to close on or before 31 January 2019, subject to completion of closing conditions.
Sun Pharma entered the Japanese prescription market in 2016 with the acquisition of 14 established brands from Novartis.
The size of the Japanese pharmaceutical market is estimated at $84.8 billion, accounting for approximately 7.5% of the $1.13 trillion global pharmaceutical market (as per IQVIA Market Prognosis, September 2017).