Ranbaxy Laboratories Limited (Ranbaxy) and Nippon Chemiphar (NC) announced the dissolution of their joint venture Nihon Pharmaceutical Industry Co Ltd (NPI), in Japan. This follows an agreement between the two companies that allows NC to purchase the entire shareholding of its erstwhile partner. Both companies held equal shares in the JV. Following the transaction, NPI will become a wholly owned subsidiary of Nippon Chemiphar.

In recent years, the companies had discussed the evolving generic market scenario and the emerging opportunities, in Japan. It was amicably concluded, that it would be in the best interest of both companies to develop their generic businesses independently, for optimal value.

The existing generic products being manufactured and supplied from Ranbaxy's manufacturing plants, in India, will continue to be supplied to NC, for some time, to enable a smooth transition.

Japan is the second largest Pharma market in the world and is gradually opening up to generic drugs. This provides ample opportunity for both companies to build and consolidate their presence in Japan.

Nippon Chemiphar, founded in 1950 is a medium-sized Japanese pharmaceutical company, headquartered in Tokyo.