Joint venture opens door to Japanese market

Published: 11-Feb-2013

Indian company Claris Lifesciences forms company with Otsuka


Japan, the second biggest pharmaceutical market in the world, remains a tough nut to crack for India’s generic drug makers. Medicines worth about US$70bn are sold every year in Japan, with prescription drugs constituting about 7% of sales.

India-based injectables player Claris Lifesciences has entered into a joint venture with Japan’s Otsuka Pharmaceutical Factory and Mitsui & Co for its infusion business in India and emerging markets. The business is valued at £148m, with Claris receiving a total cash consideration of £118m over multiple agreements.

The joint venture will include the common solutions, anti-infectives, plasma volume expanders and parenteral nutrition therapies of Claris for India and the emerging markets. Historically, these businesses have accounted for around 55% of Claris’s business. The company will now transfer the above-mentioned business to the Claris-Otsuka joint venture.

Claris would hold a 20% stake in the joint venture, while Otsuka will hold 60%. The remaining 20% will be with Mitsui. Two out of five plants will be transferred to Claris-Otsuka, the Indian company said. Claris-Otsuka will co-brand its products in India and across emerging markets utilising the manufacturing and marketing backup of Claris. Also, Claris-Otsuka would work on expanding the product basket with speciality infusion and clinical nutrition products.

Early this year, India asked Japan to remove all non-tax barriers to help the domestic industry take advantage of the comprehensive free trade agreement and increase its share in the Japanese market.

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