Daiichi Sankyo to buy Zepharma for $200M

Japanese drugmaker Daiichi Sankyo says it will acquire all the stock of pharmaceutical group Zepharma, the over-the-counter subsidiary of fellow Japan-based company Astellas, for 23.5 billion yen ($200.0 million). Daiichi Sankyo plans to integrate Zepharma into its health care division, which was established late last year.

The purchase will position Daiichi Sankyo as one of Japan's three largest OTC drug companies behind Taisho, which earned 172.4 billion yen in 2005, and Takeda's OTC concern which achieved revenues of 55.7 billion yen in the period. Daiichi Sankyo also says that the move forms part of its strategic decision to focus on the provision of therapeutic agents, self-medication and preventative care.

Astellas said that it wished to divest Zepharma, which achieved annual sales of 22.4 billion yen in the year ended March 2005, and concentrate on the development of its ethical drug business, particularly seeking to expand its presence in the global market.