Japan's No 1 generics group formed

Japan's third-ranked generic drug manufacturer, Nichi-iko Pharmaceutical will acquire all of the outstanding stocks of Teikoku Medix, a medium-size copycat medicines firm, from parent Teikoku Seiyaku, whose core activity is manufacturing poultices, and make it a wholly-owned subsidiary, the company has revealed.

Nichi-iko has recently strengthened its capability in the manufacture and supply of copycat drugs by taking over small-sized generic manufacturers such as Maruko Pharmaceutical and Oriental Pharmaceutical, consolidating them one by one against a backdrop of the Japanese government promotion of the use of generic drugs.

Teikoku Medix, with expected sales of 10.7 billion yen ($110.5 million) in the fiscal year ended December 2007, has advantages of dermatology and improved formulations with added value. Since Nichi-iko posted turnover of 32.3 billion yen in the fiscal year ended November 2007, the combined revenues of Nichi-iko and Teikoku Medix will reach about 43.0 billion yen, which means the group will overtake Japan's current number one generics firm, Sawai Pharmaceutical, which anticipates sales of 36.5 billion yen for the fiscal year ending March 2008.