Shionogi pushes 2030 vision forward with $1 billion acquisition

Japanese drugmaker Shionogi (TYO: 4507) is to scale up its pipeline and global ambitions with a deal worth more than $1 billion, buying the pharmaceutical operations of Japan Tobacco, including its US subsidiary Akros Pharma.

The agreement, announced Wednesday, will also see Shionogi acquire full control of Torii Pharmaceutical, which is currently majority-owned by Japan Tobacco. The Osaka-based group will spend around 150 billion yen ($1.05 billion) in total, including roughly 70 billion yen for Japan Tobacco’s 55% stake in Torii.

As part of the transaction, Shionogi will absorb Japan Tobacco’s domestic pharma operations and acquire New Jersey-based Akros Pharma through its US subsidiary, Shionogi Inc. A tender offer for Torii’s remaining shares will follow, with the aim of turning it into a wholly owned unit.