Mumbai-headquartered pharma major Lupin announced on Wednesday, October 11th that its US subsidiary, Lupin, Inc., has acquired Symbiomix Therapeutics, LLC. Lupin had entered into an option to acquire the company earlier this year. Symbiomix is a privately held company focused on bringing innovative therapies to market for gynecologic infections that can have serious health consequences. According to a press release issued by the company, "the acquisition has been made for a cash consideration of USD 150 million including a USD 50 million upfront and other time-based payments. In addition, there are sales based contingent payments. The acquisition is funded from internal funds. The transaction was closed on Wednesday."
Analysts see it as a good opportunity for Lupin but feel the company may need to wait for say another two years or so for benefits to accrue since they may first need to start investing on sales infrastructure, promotion and all the associated investments over the next year or so , which, given the timing, may put addition pressure on what some refer to as already week earnings.
The acquisition of Symbiomix and the Solosec franchise, the company release says, "significantly expands Lupin's branded women's health specialty business, which is presently anchored by Methergine (methylergonovine) tablets. On September 15, 2017, the US FDA (US Food and Drug Administration) approved Symbiomix's lead product, Solosec (secnidazole) oral granules, for the treatment of bacterial vaginosis (BV) in adult women. Lupin expects Solosec to be commercially available by mid-2018. Solosec has been designated as a Qualified Infectious Disease Product (QIDP) by the U.S. FDA for the treatment of BV. QIDP designation is for medications intended to treat serious or life-threatening infections and makes Solosec eligible for at least 10 years of exclusivity in the United States."
The company release also quotes Lupin CEO Vinita Gupta as saying: "We are delighted to complete the acquisition of Symbiomix and its Solosec brand, which immediately expands Lupin's US women's health specialty business into the highly-complementary gynecological infection sector." She also adds: "this transaction is an important milestone in the evolution of our specialty business and gives Lupin a new therapeutic to bring to obstetricians and gynecologists to treat a serious health condition they see frequently in their practices."