Nichi-Iko to acquire Sagent Pharmaceuticals

TOKYO AND SCHAUMBURG, Ill. — Japanese generic drug giant Nichi-Iko will be acquiring Sagent Pharmaceuticals, the two companies announced Tuesday. The $736 million all-cash transaction will see Nichi-Iko paying about a 40% premium on the closing price of the company’s shares at closing on July 8. 

 

The move is aimed at Nichi-Iko becoming one of the top 10 global generics leaders, and the companies said acquiring Sagent will boost Nichi-Iko’s ability to commercialize its biosimilar pipeline and increase its presence in injectables. Sagent will gain access to Nicki-Iko’s manufacturing infrastructure and quality control systems. The companies said they don’t anticipate any changes to Sagent’s current  operations. 

 

“The U.S. market is a top priority for Nichi-Iko and we believe Sagent is an ideal partner to accelerate our international growth strategy,” Nichi-Iko president and CEO Yuichi Tamura said. “The company has a highly robust sales network, significant global relationships through its unique partner network, and an attractive portfolio of 55 products primarily in oncology, anti-infective, and critical care, of which 30% have a No. 1 or No. 2 market share. The combination will give us the opportunity to strengthen our international competitiveness, leverage our production capacity over a wider range of products, and accelerate development of our biosimilars business.”

 

The companies expect the deal to be complete in the second quarter of Nichi-Iko’s fiscal year, which ends in March 2017.