- The Japanese company Nichi-Iko announced Monday it will acquire Illinois-based Sagent Pharmaceuticals for $736 million ($21.75 per share). This represents a 40% premium.
- Nichi-Iko seeks to gain a foothold in the U.S. market as part of its larger goal of becoming a top 10 global generics company. Currently all of Nichi-Iko's revenues are coming from Japan.
- The company said the acquisition would provide both companies with improved presence and pipelines, adding that it anticipates no changes to Sagent's operations or management.
As a Japanese company determined to strengthen its position in the global generics company, expanding into the U.S. market and finding an affordable target with a synergistic portfolio makes sense.
"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, Yuichi Tamura, President & CEO of Nichi-Iko, said in its statement.
"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," Tamura added.
Sagent's CEO, Alllan Oberman, noted the company would be better positioned to compete in the biosimilar and injectable markets, aiming to bolster its position as a provider to hospitals and clinics.