Taisho Pharmaceutical Co. and Toyama Chemical Co. said Monday they have concluded a tieup agreement that features the establishment of a joint sales company and the acquisition by Taisho of a major equity stake in Toyama.
The alliance is aimed at reinforcing the firms' marketing capacities and maximizing the efficiency of their research and development investment, Taisho and Toyama said in separate statements.
Under the agreement, midsize pharmaceutical producer Toyama will allocate 43 million new shares to Taisho, a top-ranked maker of nonprescription drugs, on Sept. 25 at 434 yen per share.
This third-party share allotment will make Taisho the biggest stakeholder in Toyama, at 21.8 percent.
The two companies will also establish a joint sales company in the prescription drugs sector in October.
Taisho Toyama Pharmaceutical Co. will market its founders' existing medicines.
Taisho and Toyama will also sell new drugs through the joint venture, which will start operating in April.
Taisho Toyama Pharmaceutical will be capitalized at 500 million yen.
It will be owned 55 percent by Taisho and 45 percent by Toyama, and will operate with a workforce of around 1,300, which will be supplied by its cofounders.
The company is expected to chalk up sales of 95 billion yen in fiscal 2003, rising to 120 billion yen in fiscal 2005.
The latest agreement also advocates further cooperation between Taisho and Toyama on R&D programs and overseas operations.