Sawai Pharmaceutical, an Osaka, Japan-headquartered generic pharmaceuticals manufacturer, has agreed to acquire the US generics business of Upsher‐Smith Laboratories, a Maple Grove, Minnesota-based generics manufacturer, from Upsher-Smith’s parent company, Acova, a Largo, Florida-based profit corporation, for approximately $1 billion.

Under the agreement, Sawai will acquire all the equity interest in the generics business for consideration of $1.05 billion, financed by bank loans and available cash. The transaction is expected to close by the end of June 2017, subject to customary regulatory approvals. Following the closing, Upsher‐Smith’s non‐generic pharmaceuticals businesses will remain with Acova.

The acquisition expands Sawai’s presence in the US market with Upsher‐Smith’s product portfolio, which contains more than 30 pharmaceutical products, mainly oral solid preparations, and a pipeline of more than 30 products. Moving forward, Sawai plans to build a US business that leverages its intellectual property and combines research and development capabilities with Upsher‐Smith’s manufacturing base, distribution network, established commercial relationships, and brand. For Upsher‐Smith, the acquisition brings access to Sawai’s manufacturing technology and new markets, including the Japanese market.

No changes to Upsher‐Smith’s operations are currently anticipated, and the current management team will remain in place.

Source: Sawai Pharmaceutical