The Japanese company is investing in US capacity to fuel growth.
Established generics manufacturers Sawai Pharmaceutical Co. Ltd. and Upsher‐Smith Laboratories, Inc., signed an agreement on April 24, allowing Sawai to acquire the generic pharmaceuticals business of Upsher‐Smith from parent ACOVA Inc. Upsher‐Smith is an established manufacturer with a diversified product portfolio of more than 30 products, mainly oral solid drug forms.
In March, Upsher‐Smith announced the US launch of Clomipramine Hydrochloride Capsules USP (25 mg, 50 mg and 75 mg). Upsher‐Smith said that according to IMS Health, the clomipramine hydrochloride capsules market was valued at approximately $172 million for the 12 months ending December 2016. On announcing the new generic product Upsher-Smith President, Rusty Field noted, “This is an exciting time for the Company. Upsher-Smith currently has more active ANDA programs in development than at any point in its history and is committed to expanding its portfolio of quality, high-value generic products through both internal development and strategic partnerships.”
Under the agreement, Sawai will acquire all equity interest in the generic pharmaceuticals business of Upsher‐Smith for $1.05 billion. The transaction, said Sawai, will be financed by bank loans and available cash and is expected to close by the end of June 2017, subject to regulatory approvals.
Moving forward, Sawai said it plans to build a US business that leverages its intellectual property and combines R&D capabilities with Upsher‐Smith’s manufacturing base, strong distribution network, established commercial relationships and recognized brand. For Upsher‐Smith, the acquisition brings access to Sawai’s state‐of‐the art manufacturing technology and opportunities to bring its products to Japan.
Sawai President Mitsuo Sawai concluded, “We are delighted to sign this agreement today with ACOVA to acquire Upsher‐Smith, which is our first overseas investment. Upsher‐Smith, like Sawai, has a long history as a private family‐owned generic pharmaceuticals company that is also focused on patient needs, centered on our philosophy of ‘Patients First.’ We look forward to working closely with … the talented management team to forge a new global chapter in Upsher‐Smith’s future together. Most importantly, we are committed to the entire team at Upsher‐Smith, and to expanding the opportunities for the U.S. workforce at Upsher‐Smith,” he said.