Shionogi to Acquire Pharmaceutical Company for Nearly 8 Billion Yuan

Nearly 8 Billion Yuan! Japan's Shionogi to Acquire a Pharmaceutical Company

Recently, Japanese pharmaceutical company Shionogi (OTCPK:SGIOY) announced that it had reached an agreement with Japan Tobacco to acquire its subsidiary Torii Pharmaceutical (OTCPK:TRXPF) for ¥160 billion (approximately 7.94 billion yuan, based on the current exchange rate of 1 yen ≈ 0.0496 RMB).

According to the agreement, Shionogi will acquire 54.84% of the voting rights in Torii for ¥70.3 billion, and will also make a tender offer to the minority shareholders of the company at a price of ¥6,350 per share. As part of the acquisition of Japan Tobacco's pharmaceutical business, Shionogi will also acquire Akros Pharma, located in New Jersey, through its U.S. subsidiary.

Torii Pharmaceutical Co., Ltd. (OTCPK:TRXPF), headquartered in Tokyo, is a publicly listed company and one of Japan's leading developers of drugs for diseases such as chronic kidney disease, dermatological conditions, and allergies. It has partnerships with companies like Verrica, a skin disease treatment company, including an exclusive licensing agreement signed in March 2021 for the development and commercialization of TO-208 in Japan.

TO-208 (also known as VP-102, sold in the U.S. as YCANTH™) is used to treat molluscum contagiosum in Japan, and its Phase 3 trial has shown positive top-line results. Additionally, the company markets an anti-itch drug for hemodialysis and peritoneal dialysis patients, which was developed by Toray Industries. Torii received sales licenses for these two patient groups in 2009 and 2017, respectively. In the field of dermatology, Torii also sells products like the "Torii Universal Ointment" and antifungal foot cream, which are well-known in the market.

In addition, Shionogi has a history of acquiring pharmaceutical companies, such as the 2011 acquisition of Chinese pharmaceutical company C&O Pharmaceutical Technology (Nanjing Changao). In 2023, Shionogi acquired U.S.-based Qpex Biopharma for $140 million, gaining exclusive rights to develop, produce, and market the oral antibacterial drug, a novel β-lactamase inhibitor, Xeroborbactum (QPX7728).