Mitsubishi Tanabe Pharma Corp. said it will acquire a Canadian pharmaceutical firm to develop vaccines in conjunction with a unit of U.S. tobacco giant Philip Morris to strengthen its know-how ahead of a rise in global demand.

Through the deal worth up to about ¥16.9 billion, Mitsubishi Tanabe Pharma will make Quebec-based Medicago Inc. its subsidiary, the Osaka-based drugmaker said Friday.

Mitsubishi Tanabe has a 6.0 percent stake in Medicago. Tobacco maker Philip Morris International Inc.’s Dutch subsidiary, Philip Morris Investments B.V., has a 38.5 percent stake.

Mitsubishi Tanabe and Philip Morris Investments will buy Medicago stock from shareholders to raise their stakes to 60 percent and 40 percent, to run Medicago as a joint venture.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.