Sumitomo Corporation of Americas, a subsidiary of Sumitomo Corporation, has agreed to acquire 20% interest in Sawai America (SAI), a United States subsidiary of Sawai Pharmaceutical and the parent company of US generics drug maker Upsher-Smith Laboratories (USL), it was reported yesterday.

The deal is valued at around USD211m and is likely to be completed by the end of March 2018.

The transaction is intended to enable both parties to establish a strategic alliance in the generic pharmaceuticals business in the United States. According to the terms of the deal, SAI will be changed to a limited liability company and renamed Sawai America LLC (SAL). The company will also create an interim holding firm, Sawai America Holdings, which will serve as parent company to SAL.