Confirming an option agreement earlier this year, Indian pharma major Lupin (BSE: 500257) via its US subsidiary, said today that it has now acquired Symbiomix Therapeutics, with the news sending its share up 1.4% to 1,060.95 rupees.
Symbiomix is a privately-held New Jersey, USA-based company focused on bringing innovative therapies to market for gynecologic infections that can have serious health consequences. The acquisition has been made for a cash consideration of $150 million including a $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 today.
The acquisition will enhance Lupin’s branded women’s health specialty business, which at present is based on Methergine (methylergonovine), a drug Lupin acquired when it bought GAVIS Pharmaceuticals for $880 million in March 2016. The company expects Solosec to contribute over $100 million per annum once it is ramped up three-four years time.
Lead product Solosec approved by FDA this month
On September 15, 2017, the US Food and Drug Administration approved Symbiomix’ 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 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.
“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,” said Vinita Gupta, chief executive of Lupin. “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,” he added.