New Delhi: Lupin has identified cancer drugs as the new focus area in the Japanese market where patents on products worth USD 2 billion are expected to expire in next five years.
The company, which is present in Japan through two wholly -owned subsidiaries - Kyowa Pharmaceutical Industry and I'rom Pharmaceuticals - has created a product basket of about 7-8 oncology products there through a mix of in-licensing and co-development.
"We have identified oncology as the new focus therapeutic area for us in Japan. Patents on products worth about USD 2 billion will expire in next 3-5 years," Lupin Ltd President (AAMLA and Business Development) Vinod Dhawan said in an e-mailed response.
Lupin has presence in both oral and injectable products development and manufacturing infrastructure in Japan.
Elaborating the company's strategy, Dhawan said: "We have created a product basket of about 7-8 oncology products in Japan through mix of in-licensing and co-development."
Lupin will be marketing its products through I'rom DPC team to target about 400 cancer hospitals in Japan.
"We are also setting up dedicated oncology product packaging facility in-house in Sanda. We expect revenues of about USD 50 million through this initiative in next 3-5 years," Dhawan added.
The company is looking at expanding its manufacturing capabilities in Japan and is also strengthening its management team in Japan, he said.
Lupin's Japanese unit Kyowa posted revenues of Rs 860.70 crore for the year ended March 31, 201. For the current fiscal, the company aiming sales of USD 250 million (over Rs 1,300 crore).
It aims to double the sales to USD 500 million (over Rs 2,600 crore) from Japan in the next five years.
The company had acquired I'rom Pharmaceuticals last year.
Japan has among the lowest generics penetration among the developed markets. In April, Japanese government provided additional incentives to various stakeholders to promote generic drugs in the country.
According to industry estimates, the Japanese market will expand in next 3-5 years, as there are significant patent expiries for products worth USD 10 billion.
Industry watchers suggest that generic drug penetration in Japan will go up to 35 percent by 2016. Currently, there are more than 20-30 generic companies in the Japanese market.
First Published: Sunday, October 14, 2012, 11:57