Shionogi buys out Pionnier following the conclusion of their joint study

Shares of Japanese drugmaker Shionogi (TYO: 4507) rose 1.4% to 6,146 yen, after the company today announced that it has purchased all outstanding shares of Pionnier following the conclusion of its latest joint study with the venture company.

The joint study, which began in October 2015, ended with the two companies having achieved the set goals. Pionnier is a carve-out venture set up by venture funds including Osaka Bio Fund. The investment is part of a project launched by Drug Seeds Alliance Network Japan (DSANJ), an entity inaugurated for the Osaka Chamber of Commerce and Industry to support new drug development by Osaka-based pharmaceutical companies.

The alliance network was launched in September 2015 to maximize the value of certain drug development seeds owned by pharmaceutical companies during a short period of time, while using external funds. The alliance network marked Japan’s first public entity-assisted scheme aimed at commercializing drug development by private companies.