Indian pharma company Lupin has acquired 80 per cent stake in Kyowa Pharmaceutical Industry (Kyowa), one of the top 10 generic pharmaceutical companies in Japan, for an undisclosed amount.

Lupin had entered into a strategic alliance with Kyowa about two years ago to market finished formulations in Japan.

Kyowa is a privately-held company owned by its promoters, the Sugiura family. It reported a sales turnover of Rs 247 crore for year ended March 2007.

Lupin sources said that it would acquire the remaining 20 per cent stake in Kyowa soon, but declined to reveal the size of the acquisition.

Japan is the second largest pharmaceutical market in the world after the US, with a market size of $60 billion. By the end of 2010, the Japanese pharmaceuticals market is  projected to reach $70.8 billion.

The country's generics market is valued at $3 billion, which is about 5 per cent of its total pharma market in terms of value and 17 per cent by volume, according to various estimates.

The policies pursued by the Japanese government towards cutting healthcare costs have resulted in the growth of cheaper generic drugs.

Zydus Cadila, the Ahmedabad-based pharma company, had recently acquired 100 per cent stake in Nippon Universal Pharmaceutical, Tokyo.

Ranbaxy has 50 per cent stake in Nihon Pharmaceutical Industry, a joint venture between Ranbaxy Laboratories [Get Quote] and Nippon Chemiphar of Japan.