Sun Pharma intra day rose over 2.6% to Rs.815; though it has come off this level, it now at Rs.809, some 2% up.

The company announced today morning that it has acquired 14 established prescription brands from Novartis AG and Novartis Pharma AG (together ‘Novartis’) in Japan.

According to the agreements entered into between the parties, a wholly-owned subsidiary of Sun Pharma will acquire the portfolio consisting of 14 established prescription brands from Novartis for a cash consideration of US$ 293 million. These brands have combined annualized revenues of approximately US$ 160 million and address medical conditions across several therapeutic areas. Under the terms of the agreements, Novartis will continue to distribute these brands, for a certain period, pending transfer of all marketing authorizations to Sun Pharma’s subsidiary. The acquired brands will be marketed by a reliable and established local marketing partner under the Sun Pharma label. The local marketing partner will also be responsible for distribution of the brands.

 This acquisition marks Sun Pharma’s foray into the Japanese prescription market and provides the company with an opportunity to build a larger product portfolio in the future.