GSK And Daiichi Sankyo Joint Venture To Form Largest Vaccines Company In Japan
GlaxoSmithKline and Daiichi Sankyo Co. Ltd. have signed a joint venture agreement to form a vaccines company in Japan.
AsianScientist (Mar. 5, 2012) – GlaxoSmithKline and Daiichi Sankyo Co. Ltd. have signed a joint venture (JV) agreement to form a vaccine company in Japan, which is expected to be the country’s largest.
According to the GSK press statement, the JV will hold the development and commercial rights for already existing preventative vaccines from both parent companies. It will supply globally recommended vaccines to Japan including Human Papillomavirus (HPV) vaccine, Rotavirus vaccine, Seasonal flu vaccine, Mumps vaccine, Diphtheria Pertussis (DTP) vaccine, and Measles Rubella (MR) vaccine.
The business will be expanded in the future as new vaccines in the JV development pipeline are approved.
Both companies will sell their respective vaccines into the JV at agreed upon prices and expect sales synergies from the JV. The companies will have an equal stake in the joint venture and will split the JV’s profits 50/50 with a portion going toward funding ongoing capital needs of the JV.
There will be a minimal total cash investment of 100 million Yen (approximately US$1.2 million) split equally between the two companies to cover the start-up capital requirements of the JV.
“This collaboration marks another step in our strategy to build our presence in key growth markets and will create the first and largest company dedicated solely to vaccines in Japan,” said Christophe Weber, President Designate of GlaxoSmithKline Vaccines.
Completion of the transaction is expected in the 3rd quarter of 2012, subject to local regulatory approvals.
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