Japan's Sawai Pharma to acquire generics business of Upsher-Smith

Japanese generics firm Sawai Pharmaceutical (TYO: 4555) has signed an agreement to purchase the generic pharmaceuticals business of privately-held Upsher-Smith, from its parent, ACOVA.

Upsher-Smith has a diversified product portfolio of over 30 pharmaceutical products, mainly oral solid preparations, and a strong pipeline of over 30 products.

Under the agreement, Sawai will buy all the equity interest in the generic pharmaceuticals business of Upsher-Smith from ACOVA for consideration of $1.05 billion. The transaction will be financed by bank loans and available cash. It is expected to close near the end of June 2017, subject to customary regulatory approvals. Following the closing, Upsher-Smith's non-generic pharmaceuticals businesses will remain with ACOVA.