Taisho Pharmaceutical Co. Ltd. (4535.TO) said Wednesday it will buy Bristol-Myers Squibb Co.'s (BMY) over-the-counter drug assets worth $310 million in Asia, aiming to boost its presence in markets where demand for self-medication products is still growing.

Under their agreement, Japan's largest maker of OTC pharmaceutical products by sales said it will buy the New York-based drug maker's OTC brand assets in the region for $160 million.

Taisho will also buy a 97.97% stake in the U.S. firm's unit listed in Indonesia, Bristol-Myers Squibb Indonesia (SQBI.JK), through a tender offer for $150 million.

The latest OTC business sale is part of Bristol-Myers Squibb's strategy to focus on its prescription drug business. The U.S. drug maker has been unloading non-core operations including OTC drugs. The company sold its OTC business in Japan to Lion Corp. (4912.TO) in 2007.

Bristol-Myers Squibb's Asian OTC assets include Tempra pain reliever and Counterpain inflammation treatment.

For Taisho, which is known in Japan for its Lipovitan energy drink products, the deal will mean a new source of profit outside of its sluggish home market and production facilities in Indonesia for future expansion using its own brands of products in the region.

Taisho will take over all of permanent employees at Bristol-Myers Squibb Indonesia which had sales of about Y3.3 billion in 2008.

 
   -By Kazuhiro Shimamura, Dow Jones Newswires; 813-6895-7566; kazuhiro.shimamura@dowjones.com