An employee operates machinery inside a Lupin Ltd. plant (Photographer: Dhiraj Singh/Bloomberg) 

India's Lupin Starts Strategic Review of Japanese Arm

(Bloomberg) -- Lupin Ltd. has started a strategic review of its Japanese operations, people with knowledge of the matter said, as the Indian pharmaceutical company seeks to focus on higher-growth areas.

The Mumbai-based drugmaker is working with advisers as it explores options for the Japan business, according to the people, who asked not to be identified because the information is private.

Japanese subsidiaries of Lupin produce treatments in therapeutic areas including psychiatry and neurology. Its business in the country, which generated 35.5 billion yen ($314 million) of revenue in the latest financial year, is the sixth-largest generic drugmaker in Japan, Lupin’s website shows.

Lupin was earlier gauging buyer interest in its Japanese injectables business, the people said. The review of its operations in the country is at an early stage, and there’s no certainty the deliberations will lead to any transactions, according to the people.

“Lupin is not considering any divestment of any activities or asset in Japan,” the company said in a emailed response to Bloomberg News queries.

The broader generic drug industry is continuing to struggle as prices of copycat medications fall at a rapid rate in the U.S., which is the world’s largest pharmaceutical market. Last month, Lupin’s U.S. competitor Mylan NV said it would consider radical changes to its business, while Dublin-based Perrigo Co. announced a separation of its generic business.

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