Pharma major Lupin Limited (Lupin) announced that its subsidiary, Nanomi B.V. has completed the divestiture of the entire stake (99.82%) in Kyowa Pharmaceutical Industry Co. Ltd. (Kyowa) to Unison Capital Partners IV, LPS and Unison Capital Partners IV (F). L.P. (collectively referred to as ‘Unison’), pursuant to the satisfactory completion of all customary closing conditions. The divestiture which valued Kyowa at an Enterprise Value of JPY 57,361 million, was announced on November 11, 2019 and approved by Lupin’s shareholders.
The transaction generates post tax net cash inflow of approximately JPY 33,429 million (Rs 21,576 million) and significantly strengthens Lupin’s consolidated balance sheet. Net debt of the company reduces from Rs. 43,618 million (as on September 30, 2019) to Rs.10,753 million. Net debt to equity ratio now stands at 0.08 as compared to 0.32
Nilesh Gupta, Managing Director, Lupin said, “We are pleased to announce the completion of this important transaction. This transaction enables us to strengthen our balance sheet and unlock significant value for the company and is aligned with our vision to focus on our key markets and strategic priorities to achieve sustainable growth. We will continue to selectively monetize our complex generics, biosimilars and specialty assets in Japan with the right partners, including Unison.”
Lupin is the 8th largest generics pharmaceutical company by revenues (30th Sep 2019, Bloomberg LTM) respectively. The Company is the 3rd largest pharmaceutical player in the US by prescriptions (IQVIA MAT Sep 2019); 3rd largest Indian pharmaceutical company by global revenues (30th Sep 2019, Bloomberg LTM) and 6th largest company in the Indian pharmaceutical Market (IQVIA MAT Sep 2019). For the financial year ended March 31, 2019, the company’s consolidated sales and Net profits before exceptional items stood at INR 163,694 million (USD 2.34 billion) and INR 9,466 million (USD 136 million) respectively.
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