Lupin buys US firm for $150 mn
Lupin Ltd on Wednesday said its US subsidiary has acquired Symbiomix Therapeutics LLC for a cash consideration of $150 million in a bid to expand its presence in the women’s health segment.
The total cash consideration includes an upfront payment of $50 million and other time-based payments. Lupin will also make certain sales-based contingent payments to Symbiomix, the Indian drug maker said in a release, adding that the acquisition is funded from internal accruals.
US-based Symbiomix is focused on bringing innovative therapies to the market for gynaecologic infections that can have serious health consequences. In September, the US Food and Drug Administration (FDA) approved Symbiomix’s lead product, Solosec oral granules, for the treatment of bacterial vaginosis in adult women.
Lupin expects Solosec to be commercially available by mid2018. The product has been designated as a Qualified Infectious Disease Product (QIDP) by the US Food and Drug Administration (FDA). QIDP designation is for medications intended to treat serious or life-threatening infections. This status makes Solosec eligible for at least 10 years of exclusivity in the US.
US physicians prescribe more than 6 million prescriptions for bacterial vaginosis per year. Solosec is the first and only oral single-dose treatment option for the disease and hence has the potential to take significant share in that market, said Vinita Gupta, chief executive of Lupin.
“For bacterial vaginosis, the highest number of prescription is for metronidazole (brand name Flagyl). Majority of share that we would be targeting for Solosec is from metronidazole. We are still trying to determine what the ideal pricing is but other branded products in the segment are between $150 to $250 per prescription,” Gupta said.
The company expects Solosec to contribute over $100 million per annum once it is ramped up in three to four years.
The acquisition of Symbiomix and its brand Solosec significantly expands Lupin’s branded women’s health specialty business, which is at present anchored by Methergine tablets. It meets the company’s six-year payback criteria for strategic acquisitions, Gupta said.