Lupin in talks with Japan's Astellas, Shionogi to buy their off-patent drug brands - (The Economic Times via NewsPoints Desk)

  • According to sources, Lupin has entered into negotiations with Astellas and Shionogi to acquire their off-patent drug brands, as reported The Economic Times Wednesday.

  • The sources noted that each company's portfolio could fetch $100 million in a sale, noting that the acquisition could expand Lupin's offerings in Japan, where the company amassed 10 percent of its revenue last fiscal year.

  • Lupin previously bolstered its Japanese businesses by acquiring a majority stake in stake in its Japanese partner Kyowa in 2007 and purchasing specialty injectables manufacturer I'rom Pharmaceutical in 2011.

  • Meanwhile, some Japanese companies have recently sought to offload old drugs and use the proceeds to fund R&D.

  • "Japan is a less understood fertile market," an expert remarked, adding "acquiring brands is identified as the best way to make a foray. Those who start from scratch either fail or have a long runway to reach critical mass."  

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