UPDATE:Taisho To Buy Bristol-Myers Asian OTC Assets For $310 Million
September 15 2009 - 11:29PM
Dow Jones News
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