Lupin Lab in a Fruitful JV with Yoshindo Inc: Improving Access to Japanese Markets

Lupin Lab in a Fruitful JV with Yoshindo Inc: Improving Access to Japanese Markets

Pharma and drug major Lupin Lab has just entered into a joint venture agreement with Japan’s Yoshindo Inc for forming a new entity to access the Japanese market. Japan’s healthcare and pharmaceuticals market is expanding rapidly and it is only through a local approach that drug makers can hope to strike a chord with consumers in this industry. Yoshindo Inc is a company based in Toyama. The joint venture has been christened as YLB (YL Biologics). This company will be managed jointly by Yoshindo Inc and Lupin Lab.

YLB will focus on developing and securing market access for products in the Japanese market. It will also be involved in clinical development of biosimilar products. A key part of the functions of this joint venture will be to focus on regulatory filings and acquisition of marketing authorizations in Japan.

Yoshindo Inc and Lupin Lab have also made an arrangement regarding in-licensing. It has been agreed by both companies that YL Biologics will in-license Monoclonal Antibodies from Lupin Lab. It will also form partnerships and collaborations with other companies across the globe for the healthcare and medicine market in Japan.

A key feature of Japan is its clear cut regulatory regime for the development and marketing of biological products. Yoshindo Inc shares a deep commitment with Lupin Labs to bring a certain class of drugs called biosimilars which have a huge market in Japan. Lupin Lab is looking to boost its biosimilar portfolio through the formation of YL Biologics.

The first product to be licensed for clinical development to this new joint venture is Etanercept biosimilar which is manufactured by the Biotechnology Research Group of Lupin located in Pune. Etanercept is a biosimilar, biopharmaceutical product that has been given global approval. This medicine is vital for treating autoimmune disorders such as rheumatoid arthritis and psoriasis. Etanercept or Enbrel is also used for treating ailments such as spondylitis. Currently, it is marketed as Enrbel by Takeda Pharmaceuticals in Japan. It has generated sales of $496 million since its introduction into the market.

Lupin Labs will also gain access to milestone based licensing income along with commercial supplies of the drug. The medicines will then be marketed by Lupin Labs as well as Yoshindo Inc under their own brand names. This will enable them to leverage their sales networks.

Lupin Lab and Yoshindo Inc are looking to expand their reach in the Japanese market through this joint venture. Japan’s biological market is valued at nearly $12 billion. In more good news for companies such as Yoshido and Lupin, the market is now growing at 2 to 3% every year.

The president of Yoshindo Inc, Mr. Kenzo Shimomura has also lauded the new joint venture with Lupin Labs as the way to expand the activities of his company to the expanding biosimilar market in Japan. The highlight is on the strategic representation of the company. The joint venture between the two companies will enable both to tap the markets in ways that are mutually beneficial.

Yoshindo Inc was formed in the year 1962 and it has revenue of over $350 million. It is a leader in the field of generic pharmaceuticals in Japan. Lupin Lab’s shares have been up 0.71% since the announcement about the joint venture. This strategic joint venture is an important step forward for Lupin Labs. Most MNCs across the world are now realizing the importance of having connections with local companies to garner a larger share of the market.

While some companies are partnering with international firms in the pharmaceutical field, others are joining hands with companies based in the local market. The agreement between Novartis and GlaxoSmithKline has made headlines because of its impact to the pharmaceutical industry in India. Similarly, the JV between Lupin and Yoshindo Inc is creating a positive wave in the biological and biosimilars market. No doubt YLB has a bright future ahead of it as do similar landmark corporate collaborations.