Japanese pharma companies pushing overseas
Our expert's opinion
The Japanese Sumitomo Dainippon Pharma will invest $3 billion in exchange of 10% stake in the Swiss company Roivant and access to their technology platforms. It is a strategic move that echoes the acquisition of Shire by Takeda, also a Japanese firm, not long ago, making it a top 10 player worldwide. It shows a change in the pharma sector where Japanese pharma firms, who are used to focus on their own market, are pushing to expand quickly in Europe and the U.S.
I wonder what It will bring to Belgium as business opportunities, but it feels like a positive situation.
What do you think will be the impact of this change in the Japanese firm’s mindset ?
- Antoine Desprez, Associate Consultant
Sumitomo Dainippon Pharma investing $3 billion in Swiss Roivant in overseas push
$3 billion dollar deal
Japan’s Sumitomo Dainippon Pharma Co (4506.T) will pay $3 billion for a 10% stake in Swiss drugmaker Roivant Sciences Ltd and interests in five of its biopharmaceutical businesses, the two companies said on Friday.
The deal, which will open up new drug lines for Sumitomo Dainippon, will also give it the option to acquire interests in an additional six businesses, as well as access to Roivant’s technology platforms, they said in a statement.
It comes as Sumitomo Dainippon’s schizophrenia treatment Latuda is due to lose its U.S. market exclusivity in 2023. The Japanese company will take ownership of Roivant units that develop treatments for prostate cancer, urinary diseases, pediatric illnesses and respiratory diseases, they said.
“We look forward to deepening our relationship with Roivant, which has a rich development pipeline,
technology platforms, and distinctive talents.”
Hiroshi Nomura, CEO
Exploring new worlds
Like its rivals, Japan’s seventh-largest pharma company by revenue, is grappling with a declining population at home and a need to go abroad to find growth.
While the bulk of Japanese drug firms have been largely cautious about overseas acquisitions, there are signs of change. Takeda Pharmaceutical (4502.T) this year completed a $59 billion purchase of Shire Plc, catapulting it into the list of the world’s top 10 drugmakers by sales - a rarity for a Japanese pharma company.
A fifth Roivant business unit will also be transferred before the deal’s conclusion, the two companies said.
The 11 businesses include more than 25 clinical programs with multiple product launches expected between 2020 and 2022, they said.
Shares of Sumitomo Dainippon finished up 1.7% at 1,800 yen on Friday.