New Delhi: Sun Pharma Monday said it will acquire Japan-based Pola Pharma for around USD 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 Nakamichisaid 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 USD 108 million and net loss of USD 7 million for the 12 months ended December 2017 on consolidated basis.
"The equity consideration, on debt-free and cash-free basis, for the 100 percent stake in Pola Pharma is around USD 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 USD 84.8 billion, accounting for around 7.5 percent of the USD 1.13-trillion global pharmaceutical market.
Sun Pharma shares Monday ended 2.88 percent down at Rs 510.65 on the BSE.