Sawai Pharma sells stake in US generics business to Sumitomo

Japanese drugmaker Sawai Pharmaceutical (TYO: 4555) will sell a 20% stake in its US subsidiary (Sawai America) to Sumitomo Corporation of Americas (SCOA), a subsidiary of Sumitomo Corporation (TYO: 8053), one of Japan's leading general trading houses.

In June this year, Sawai acquired the equity interest in the generic pharmaceuticals business of the US firm Upsher-Smith Laboratories (USL) from ACOVA for consideration of $1.05 billion, and this forms the basis of Sawai America.

Under the terms of the agreement, SCOA will acquire the 20% stake for consideration of $211 million. The transaction is expected to close by the end of March 2018. Sawai’s shares were up 2.17% at 6,590 yen on the news, while Sumitomo dropped 3.0% to 1,732 yen.