India’s Sun Pharma to debut in Japanese Rx market, buying Novartis brands

India’s largest drugmaker Sun Pharma (BSE: 524715) says it has acquired 14 established prescription brands from Swiss pharma giant Novartis (NOVN: VX) in Japan, with the news pushing Sun’s share up 2.3% to 812.35 rupees.

According to the agreements entered into between the parties, a wholly-owned subsidiary of Sun Pharma will acquire the portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of $293 million. These brands have combined annualized revenues of around $160 million and address medical conditions across several therapeutic areas.

Under the terms of the agreements, Novartis will continue to distribute these brands for a certain period, pending transfer of all marketing authorizations to Sun Pharma’s subsidiary. The acquired brands will be marketed by a reliable and established local marketing partner under the Sun Pharma label. The local marketing partner will also be responsible for distribution of the brands.