Nichi-Iko Pharmaceutical has acquired Sagent Pharmaceuticals in a deal worth approximately $736 million.

The acquisition brings together two leading companies in the generics market, creating stronger growth opportunities for each business. The transaction enhances Nichi-Iko’s platform in the U.S. market to commercialize its biosimilar product pipeline and increase its presence in injectables. Through the acquisition, Nichi-Iko will raise its profile in the domestic and international generics market and advance the company’s goal of becoming a Top 10 global leader in generics.

Sagent will benefit from Nichi-Iko’s portfolio of both biosimilars under development and injectable products, further enhancing its competitiveness in the U.S. market, the largest generic drug market in the world. The deal will also give Sagent access to Nichi-Iko’s manufacturing infrastructure and quality control systems, and enable it to bring high quality, cost-effective generic medicines to more patients. No changes to Sagent’s current operations are currently anticipated and Nichi-Iko expects that Sagent’s current management team will continue to lead Sagent from its headquarters in Schaumburg, IL.

“The U.S. market is a top priority for Nichi-Iko and we believe Sagent is an ideal partner to accelerate our international growth strategy,” said Yuichi Tamura, president and chief executive officer, Nichi-Iko. “The company has a highly robust sales network, significant global relationships through its unique partner network, and an attractive portfolio of 55 products primarily in oncology, anti-infective, and critical care, of which 30% have a No. 1 or No. 2 market share. The combination will give us the opportunity to strengthen our international competitiveness, leverage our production capacity over a wider range of products, and accelerate development of our biosimilars business.”

Sagent Pharmaceuticals’ chief executive officer, Allan Oberman, said, “We are very pleased to be joining together with Nichi-Iko, Japan’s generic pharmaceutical leader, which has a proven track record of business growth and generic market expertise. Both companies share a deep commitment to brand differentiation, product quality, and broad based business creativity. The combination will maintain Sagent’s current operations and valued employees while providing accelerated expansion of our product offerings and accessibility to a robust pipeline of biosimilar pharmaceuticals.”

The transaction is expected to close in the second quarter of Nichi-Iko’s fiscal year ending March 2017.