Eisai divests manufacturing subsidiary to Alfresa

Japanese drug major Eisai (TYO: 4523) has entered into a business acquisition agreement with Alfresa Holdings, a leading local pharma wholesaler, concerning the splitting off of Eisai's consolidated pharmaceutical manufacturing and marketing subsidiary Sannova (shareholding ratio: 79.5%) via an absorption-type split, its succession by a newly established company and the subsequent transfer of all shares issued in this new company to Alfresa Holdings.

The effective date of this absorption-type split is scheduled to be March 31, 2016, and the date of the share transfer is scheduled to be April 1, 2016. Financial terms of the transaction were not revealed.

As a result of revisions in Eisai's global logistics strategy based on foreseeable adjustments to Eisai's product portfolio within a vastly changing business environment, Eisai has decided to have the business of Sannova succeeded by Alfresa Holdings. Alfresa Holdings is working to strengthen its pharmaceutical contract manufacturing business centered on its wholly-owned subsidiary Alfresa Pharma Corp, and therefore Eisai believes this business succession will lead to sustainable growth as well as further expansion of Sannova.

Eisai will continue to commission the new company that will succeed the business of Sannova via absorption-type split to manufacture Eisai products currently manufactured by Sannova, and maintain a cooperative relationship with this new company.