Eisai and Ajinomoto pool gastrointestinal businesses into new joint venture

Japanese drug major Eisai (TYO: 4523) and food company Ajinomoto (TYO: 2802) are to combine their gastrointestinal (GI) pharmaceutical businesses into a new subsidiary, to be called EA Pharma. The aim is to become Japan's largest gastrointestinal specialty pharma company.

Under the terms of the agreement, Eisai's GI unit - which markets drugs such as the proton pump inhibitor Pariet (rabeprazole) and Selbex (teprenone) for the treatment of gastric ulcer - will be combined with Ajinomoto's pharmaceutical subsidiary, which has developed drugs such as alcoholic liver disease therapy Livact/Livamin (leucine, isoleucine and valine)  and also focuses on contract manufacturing as well as researching new GI therapies.

Eisai will own 60% and Ajinomoto 40% of the new company, which is expected to start operating in April 2016. Eisai's corporate officer Hajime Shimizu will become president.