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Eiken Chemical and Otsuka Pharmaceutical have agreed to a strategic partnership to strengthen their research, development, and marketing capabilities in the diagnostics market. As part of the partnership, Otsuka Pharmaceutical will acquire a 6.3% stake in Eiken Chemical. The companies aim to enhance their competitive positioning and create new business opportunities domestically and globally through cross-utilization of resources and cooperation on various products and projects. Further financial details will be disclosed as cooperation agreements are finalized.

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48 views3 pages

Press Release

Eiken Chemical and Otsuka Pharmaceutical have agreed to a strategic partnership to strengthen their research, development, and marketing capabilities in the diagnostics market. As part of the partnership, Otsuka Pharmaceutical will acquire a 6.3% stake in Eiken Chemical. The companies aim to enhance their competitive positioning and create new business opportunities domestically and globally through cross-utilization of resources and cooperation on various products and projects. Further financial details will be disclosed as cooperation agreements are finalized.

Uploaded by

Sadi Snmz
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Press release 7 September, 2006

Company Name: Eiken Chemical Co., Ltd.


Representative: Tadao Kurozumi, President
Securities code: 4549 TSE 1st Section

Company Name: Otsuka Pharmaceutical Co., Ltd.


Representative: Tatsuo Higuchi, President

Strategic partnership agreement between Eiken Chemical Co., Ltd. (Eiken Chemical) and
Otsuka Pharmaceutical Co., Ltd. (Otsuka Pharmaceutical) accompanied by the acquisition of
a strategic stake in Eiken Chemical by Otsuka Pharmaceutical

Tokyo, Japan -- The executive boards of Eiken Chemcial (Head office: 33-8 Hongo 1-chome,
Bunkyo-ku, Tokyo) and Otsuka Pharmaceutical (Head office: 2-9 Kanda-Tsukasamachi, Chiyoda-ku,
Tokyo) have agreed today to sign a strategic partnership agreement including the acquisition of a
strategic stake in Eiken Chemical by Otsuka Pharmaceutical.

1. Background

Ongoing political efforts in Japan to reduce medical expenses have been a major force behind recent
trends in the diagnostics industry to rationalize business models and to implement measures to
increase cost competitiveness. In response to this challenging environment, Eiken Chemical and
Otsuka Pharmaceutical have agreed to form a strategic partnership aimed at strengthening the
research and development as well as marketing capabilities of both companies with a view to
increasing their competitive positioning in the diagnostics market, and in doing so creating new
business opportunities both domestically and globally.
Otsuka Pharmaceutical, under its corporate philosophy Otsuka people creating new
products for better health worldwide , strives to create new markets through the development and
marketing of innovative products both globally and in Japan. Eiken Chemical is a leader in the field
of development and marketing of clinical diagnostic agents in Japan.
Both companies agree that in view of the rapidly increasing global competition in the
diagnostics area, a cross-utilization of their current resources and platforms will enhance the financial
and strategic growth prospects of both companies. Otsuka Pharmaceutical has agreed to acquire a
strategic shareholding in Eiken Chemical as part of this strategic partnership.

2. Strategic partnership agreement and strategic shareholding by Otsuka Pharmaceutical

Strategic partnership agreement


Both companies have agreed to cooperate in several business areas including marketing/market
development, research and development and technological exchange with a view to strengthening
their competitive positioning and to create substantial benefits for their stakeholders. Both
companies are in discussions as to the implementation of cooperation agreements regarding a
variety of products and projects.

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Strategic shareholding by Otsuka Pharmaceutical
To enhance the partnership between Eiken Chemical and Otsuka Pharmaceutical and to emphasize
the importance of this strategic partnership agreement for both companies, Otsuka Pharmaceutical
has agreed to acquire 1,500,000 shares or 6.3% of the outstanding common stock of Eiken
Chemical from The Master Trust Bank of Japan, Ltd. (Tanabe Seiyaku Employees Retirement
Trust). Announcements will be made in due course.

3. Company overviews (as of 31 March, 2006)

Eiken Chemical

Company name: Eiken Chemical Co., Ltd.


Business areas: Manufacturing and sales of clinical in vitro diagnostic agents and
analytical equipment including products utilizing the proprietary
nucleic acid amplification method LAMP

Year of establishment: 20 February, 1939

Registered address: 33-8, Hongo 1-chome, Bunkyo-ku, Tokyo

President: Tadao Kurozumi

Share capital: 6,897 million

Total assets: 29,595 million (consolidated)

Net sales: 23,551 million (consolidated)

Number of employees: 616 (Group)

Main shareholders and The Master Trust of Japan, Ltd. 23.35


percentage of (Tanabe Seiyaku Employees Retirement Fund)
ownership: Japan Trustee Services Bank, Ltd. 15.01
Hitachi High-Technologies Corp. 8.41
Tadao Kurozumi 3.43
The Dai-Ichi Mutual Life Insurance Company 2.31

Otsuka Pharmaceutical

Company name: Otsuka Pharmaceutical Co., Ltd.

Business areas: Manufacturing and distributing, exporting and importing of


pharmaceuticals, clinical testing equipment, medical equipment,
food products, cosmetics and other products

Year of establishment: 10 August, 1964

Registered address: 2-9 Kanda-Tsukasamachi, Chiyoda-ku, Tokyo

President: Tatsuo Higuchi

Share capital: 6,791 million

Total assets: 881,134 million (consolidated)

Net sales: 753,139 million (consolidated)

Number of employees: 18,448 (Group)

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4. Schedule

7 September, 2006:
- Approval of strategic partnership by the boards of Eiken Chemical and Otsuka
Pharmaceutical
7 September, 2006:
- Signing of strategic partnership agreement

5. Forward-looking information

Both Eiken Chemical and Otsuka Pharmaceutical are currently dedicating their highest efforts to
conclude co-operation agreements for specific product and development areas. The potential financial
impact of these co-operations is still being evaluated and further details will be disclosed in due
course.

6. Contact details
Enquiries should be directed to:

Eiken Chemical Co., Ltd., Presidents Office


TEL 03-3813-5405 FAX 03-3813-2206 e-mail [email protected]

Otsuka Pharmaceutical Co., Ltd., Public Relations Department


TEL 03-3293-3116 FAX 03-3293-3118

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