Bora Pharmaceuticals to Acquire Upsher-Smith for $210M

Bora Pharmaceuticals Company, Ltd has approved the acquisition of Upsher-Smith Laboratories Inc., a generics manufacturer based in MN, from shareholders, Sawai Group Holdings Company, Ltd (JP) and Sumitomo Corp. of Americas, for a total consideration of up to $210 million.

Founded in 1919 and owned by Sawai since 2017, Upsher-Smith has a diversified portfolio of 48 generic products with manufacturing facilities in Plymouth and Maple Grove, MN. Upsher-Smith is highly respected in the industry and is recognized as a reliable partner with solid manufacturing capabilities, a robust distribution network, and established commercial relationships. 

Combined, the two manufacturing facilities in MN are capable of commercializing a broad range of dosage forms including oral solid, powders (both oral and topical), and liquid, as well as packaging.

Through this acquisition, Bora not only gains additional capacity to support the CDMO business, but also completes its capabilities to serve customers throughout the value chain, covering the entire US market. Upsher-Smith’s product portfolio also presents significant opportunities for Bora’s commercial Rx business, TWi, in the US. Upsher-Smith’s decades-long presence in the US generics market offers deep industry expertise and know-how, as well as a well-recognized and respected name. In addition to an immediate revenue stream from a diversified portfolio of generic and branded generic products, Upsher-Smith will also offer TWi enhanced product development and marketing capabilities so that it can continue to broaden its suite of products and grow its US commercial business. 

"This is a significant milestone for Bora Group, marking the most critical expansion of Bora’s presence in the US market and significantly enhancing Bora’s position as a global competitor with regard to its CDMO business and commercial Rx business,” said Bobby Sheng, chairman and CEO of Bora Group.

“Upsher-Smith’s competitiveness is a perfect match to Bora’s long-term growth – its newly-expanded, USFDA-approved manufacturing facilities, with a total capacity of 3.5 billion doses, will be Bora’s first local facility in the US, establishing a crucial stronghold for our global CDMO business.”

“Upsher-Smith’s platform for specialty generics will strengthen TWi’s advantage in the US commercial sale business with a complementary portfolio and differentiated distribution channels. We are confident, and also committed, to delivering another successful integration for accelerating Bora’s expansion and growth in the market.” 

The closing of the transaction is subject to customary regulatory approvals. Upon closing, Bora, via its wholly-owned subsidiary in the US, will acquire 100% equity interest of Upsher-Smith.