NEW DELHI: Kyowa Pharmaceutical Industry, drug major Lupin's Japanese subsidiary, has inked a pact to acquire 21 products from Shionogi & Co for 15.4 billion yen (around Rs 1,000 crore), paving the way for the homegrown firm to enter Japan's branded formulations market.

Kyowa has entered into a strategic asset purchase agreement with Japan's Shionogi & Co to acquire 21 long-listed products, effective December 1, 2016, subject to certain closing conditions and regulatory approvals including the transfer of marketing authorisation of the products to Kyowa, Lupin Ltd said in a statement.

Under the terms of the agreement, Kyowa will book the sales of the 21 products after December 1, 2016, and Shionogi will receive 15.4 billion yen from Kyowa, it added.

The 21 products cover therapy areas such as Central Nervous System (CNS), Oncology, Cardiovascular and Anti- infectives. The products had sales of JPY 9,400 million (USD 90 million) collectively on NHI (National Health Insurance) price basis.

"This acquisition marks Lupin's foray into the Japanese branded market in-line with our aspirations to build and strengthen our speciality business globally," Lupin Ltd Managing Director Nilesh Gupta said.

The new branded product portfolio has a strong fit with Lupin's Kyowa business, as it adds depth and reach to its current CNS portfolio and other therapy areas, he added.

"I'm very pleased that this agreement with Kyowa could make both aspects of our mission a reality, allowing us to pursue innovative drug discovery with an even more intense focus, while ensuring that our high quality long-listed drugs continue to be delivered to patients to meet their unmet needs," Shionogi president & CEO Isao Teshirogi said.

Kyowa is amongst the top ten generic companies in Japan and a market leader in CNS space. With 21 new brands, Kyowa will rank sixth amongst generic companies in Japan.