September 3, 2008

Pharmaceuticals

Japan's Shionogi Will Acquire Sciele

Deal continues trend of overseas deals by Japanese firms

Jean-François Tremblay

Aiming to boost its product offerings and increase its sales outside its home country, Japanese pharmaceutical firm Shionogi will pay $1.1 billion to acquire Sciele, a drug company based in Atlanta.

With annual sales of about $2 billion, Osaka-based Shionogi develops drugs for cardiovascular and metabolic diseases, infectious diseases and immunological disorders, and cancer and related chronic pain. The company relies on the Japanese market for more than 80% of its sales.

Sciele's portfolio is focused on cardiovascular diseases and diabetes, women's health, and pediatrics. Among the drugs Sciele is developing, six have reached or recently completed Phase III clinical trials, Shionogi says. Sciele will also provide Shionogi with a U.S.-based sales force of 770 people. The Japanese firm says that Sciele will continue to operate independently and that no employee cuts are planned.

Japanese drug companies have been on an international buying spree in recent months. Daiichi Sankyo announced this summer that it would buy India's Ranbaxy Laboratories for about $4 billion (C&EN, June 16, page 14). And earlier, Takeda Pharmaceutical announced that it was paying $8.8 billion to acquire Millennium Pharmaceuticals (C&EN, April 14, page 10).

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