Chugai sells stake in Korean joint venture

Japan-based Chugai Pharmaceutical (TYO: 4519) has decided to pull out of the Korean joint venture with South Korea’s JW Pharmaceutical (KRX: 001060) that was established on a 50%/50% basis in 1992.

As a result, Chugai, which is majority-owned by Swiss pharma giant Roche (ROG: SIX), will sell its entire stake in C&C Research Laboratories to JWP by December 31, 2019. C&C will become a wholly-owned subsidiary of JWP and continue its drug discovery research with independent management. Financial terms were not disclosed.

The decision has been made as the companies agreed that C&C succeeded to develop drug candidates including atopic dermatitis and gout treatment, and is fully capable of conducting research activities as an independent management based entity. Both JWP and Chugai keep maintaining amicable partnerships and preferentially cooperate on new drug candidates discovered by C&C.