The Hindu Business Line : Ranbaxy hikes stake in Nihon Pharma to 50%

"Ranbaxy's increase in the shareholding in the joint venture reinforces its strong commitment to the Japanese market. Further, the new structure recognises the equal commitment of both partners and their intent to grow the generics business in Japan, in a collaborative manner."

Mr Malvinder Mohan Singh, President & Executive Director, Ranbaxy.

New Delhi , Nov. 11

TO TAP the lucrative Japanese market, Ranbaxy Laboratories Ltd has decided to increase its stake in Nihon Pharmaceutical Industry Co, a joint venture with Nippon Chemiphar Co Ltd from the present 10 per cent to 50 per cent.

With this enhancement, Nihon Pharmaceuticals will become a 50:50 joint venture between the two partners. Ranbaxy officials did not divulge the financial details of the deal.

Japan is the world's second largest pharma market worth about $65 billion, with the generics business accounting for just 6 per cent or $4 billion. Ranbaxy has now stepped up the momentum of its product filings in Japan through the joint venture to capitalise on the emerging opportunities in the Japanese generic space.

In a statement, Dr Brian Tempest, CEO and Managing Director, Ranbaxy said, "Ranbaxy's increase in the shareholding in the joint venture reinforces its strong commitment to the Japanese market. Further, the new structure recognises the equal commitment of both partners and their intent to grow the generics business in Japan, in a collaborative manner." Mr Malvinder Mohan Singh, President-Pharmaceuticals and Executive Director, Ranbaxy, further added that enhancing its stake was a logical move by Ranbaxy.

This flows from the increased comfort level of both partners and their resolve to take the business to higher levels of performance.

Ranbaxy had entered the Japanese market in 2002 through a strategic alliance with Nippon Chemiphar and had subsequently picked up a 10 per cent equity stake in its generic subsidiary Nihon Pharmaceutical.

Earlier in the year, the two had launched Vogseal 0.2mg and 0.3mg tablets (used for the treatment of diabetes) in Japan, which was co-developed by both the companies. The brand has already emerged a leader amidst stiff generic competition.

"Nippon Chemiphar is one of the first companies to recognise the importance of generics and make it a pillar of the company's business. It intends to be a leading company in Japan's generics market. Thus it is crucial for our business strategy that we strengthen the relationship with Ranbaxy," said Mr Kazushiro Yamaguchi, President and CEO of Nippon Chemiphar.

The share price of Ranbaxy rose by 1.5 per cent to close at Rs 381.95 on Friday on the BSE.

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