Amersham Plugs Japan Gap With Key Alliance

An alliance in the field of nuclear medicines between Sumitomo Chemical of Japan and the UK's Amersham International is being hailed as "an excellent strategic move" by industry observers, filling Amersham's gap in the lucrative Japanese nuclear medicines market.

Amersham International is investing 8.52 billion yen ($84.9 million) for a 20% stake in Sumitomo's radiopharmaceutical manufacturing unit Nihon Medi+Physics. The move is the first step towards intended integration of the two nuclear medicines businesses in Japan over the next two to five years. Along with the initial 20% stake, Amersham gains the right to purchase from Sumitomo a further 30% stake in NMP, any time between December 1996 and December 1999.

Amersham says that should it exercise this right, its own radiopharmaceutical business in Japan would be integrated with NMP resulting in a 50-50 joint venture between Amersham and Sumitomo.