Ranbaxy Laboratories Limited (RLL), the largest pharmaceutical Company of India and Nippon Chemiphar Co. Ltd. (NC), and Nihon Pharmaceutical Industry Co. Ltd. (NPI) (a subsidiary of NC) based in Tokyo, Japan, has announced a business alliance agreement for the US $ 50 bn (JPY 600 billion) pharmaceuticals market in Japan.
RLL through its wholly owned subsidiary Ranbaxy (Netherlands) B.V. (RNBV) has also entered into a definitive agreement with NC & NPI to acquire from NC 10% equity stake in NPI, stated a company release.
The wide ranging business alliance envisages RLL, NC & NPI working together to launch RLL''s ethical and Drug Delivery System (DDS) based products and generic products in Japan and to manufacture and launch NC s existing products in overseas markets by leveraging R&D capabilities and sales and distribution network of both the Companies.
RLL has been steadily enhancing its presence in the world s advanced markets and this acquisition is a strategic fit to enter the Japanese market. The alliance will provide RLL a platform to gain experience of the Japanese regulatory framework and market environment. The alliance would provide access to distinctive product portfolio and wide distribution network of NC & NPI.
NC & NPI are known in Japan for their ethical as well as branded generic pharmaceuticals business with a presence in the Central Nervous System, Cardiovascular and Gastro Intestinal segments. While NC, the parent Company is engaged in active R&D, manufacture and sale of ethical drugs, NPI focuses on generic drugs business under support from its parent (NC).
NC & NPI aim to supplement their portfolio of branded generic drugs and to expand the branded generic business in Japan, and the alliance with Ranbaxy, a leading pharmaceutical company with strong presence in global generics market will strengthen their position in Japan. Moreover, NC & NPI intend to supplement their ethical drugs pipeline as well as manufacture and launch their products in overseas markets under this alliance.
Commenting on the acquisition, Dr Brian Tempest, President-Pharmaceuticals, RLL said, "I am delighted at this first step that Ranbaxy is making towards the second largest pharmaceutical market of the world, Japan".
Kazushiro Yamaguchi, President of NC commented, "We are glad that with this wide-ranging business alliance, NC & NPI will enrich its pipelines of ethical pharmaceutical products as well as branded generic pharmaceutical products which will widen our choices of manufacture, drug delivery system and distribution".