July 31, 2014
Local (JPN)

For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, Representative Director, President and CEO
(Code no.: 4568, First Section, Tokyo Stock Exchange)
Please address inquiries to Noriaki Ishida, Corporate Officer,
Vice President, Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com/

Daiichi Sankyo Concludes Basic Agreement for Transfer of Daiichi Sankyo Propharma Akita Plant and Decides Reorganization of Japanese Supply Chain Subsidiaries

Tokyo, Japan (July 31, 2014) – DAIICHI SANKYO COMPANY, LIMITED (hereafter Daiichi Sankyo) today announced that it has reached a basic agreement with Alfresa Pharma Corporation (hereafter Alfresa Pharma) for the transfer of the Akita plant owned by its subsidiary DAIICHI SANKYO PROPHARMA CO., LTD. (hereafter DSPP) over to Alfresa Pharma as below.

 

Furthermore, although Daiichi Sankyo already revealed its plan to reorganize three of its subsidiaries into two companies in the announcement “Daiichi Sankyo to Reorganize Japanese Supply Chain Subsidiaries and Integrate Odawara Plant” dated October 1, 2012, since the plan has now been fixed details are also included below.

 

  1. 1.Transfer of DSPP Akita plant

 

1)  Objective of Transfer

The Daiichi Sankyo Group currently owns 5 API plants in Japan, but as a result of a comprehensive inspection focused on building a globally competitive production system it was concluded that transferring the Akita plant to a company outside the Group would be the best way to realize its qualities of high technological and production capacity.

The recipient of the transfer, Alfresa Pharma, is a pharmaceutical production company under the Alfresa Holdings Corporation (hereafter Alfresa HD) which mainly produces dosage forms. It is investing in a plan to expand the scale of pharmaceutical production and increase revenue. Based on this plan, Alfresa Pharma is aiming to strengthen its production business, and following transference the Akita plant is expected to be the focal point of API production.

 

2)  Method of Transfer

In September 2014 a new 100% subsidiary company of Daiichi Sankyo (name TBC, hereafter Akita new company) will be established, and this Akita new company will take over all work relating to the Akita plant. Subsequently, on April 1, 2015 (date TBC), all stock of the Akita new company will be transferred to Alfresa Pharma. Meanwhile, workers at the Akita plant will in principle continue to work as employees of the Akita new company. Furthermore, after the transfer of stock, Daiichi Sankyo will continue production of its products entrusted to the Akita new company, using the same equipment and quality assurance system as before.

 

3)  Overview of companies

 

Trade name

 DAIICHI SANKYO PROPHARMA CO., LTD.

Head office

3-5-1, Nihonbashi Honcho, Chuo-ku, Tokyo, Japan

Plants

Akita, Onahama, Tatebayashi, Hiratsuka, Takatsuki

Capital

100 million yen (100% owned by Daiichi Sankyo)

Representative

Tsutomu Shimizu, President

Sales

63.8 billion yen (fiscal year ending March 2014)

Employees

Approximately 1,400  (as of April 2014)

Main businesses

Manufacture, contract manufacture, purchase and sale, import and export of pharmaceuticals

 

DAIICHI SANKYO PROPHARMA CO., LTD., Akita Plant

Location

1-10-1, Mukaihama, Akita, Akita, Japan

Area

260,000 m2

Start of operations

1981

Plant manager

Tatsuya Sato

Employees

Approximately 100 (as of April 2014)

Production capability

API for pharmaceuticals      300 tons/year

 

Overview of Alfresa HD and Alfresa Pharma

 

Trade name

Alfresa Holdings Corporation

Head office

1-1-3 Otemachi, Chiyoda-ku, Tokyo, Japan

Established

September 29, 2003

Capital

18.5 billion yen

Representative

Denroku Ishiguro, President

Sales

2,504.5 billion yen (fiscal year ending March 2014)

Employees

10,936

Main businesses

Management of subsidiaries conducting sale, manufacture, import and export of pharmaceuticals, clinical trial reagents, medical equipment, implements, etc.

 

Trade name

Alfresa Pharma Corporation

Head office

2-2-9 Kokumachi, Chuo-ku, Osaka, Japan

 Established

December 24, 1939

Capital

1 billion yen (100% owned by Alfresa HD)

Representative

Kenichiro Iwatani, President

Sales

26.7 billion yen (fiscal year ending March 2014)

Employees

660

Main businesses

Manufacture, sales, import/export of pharmaceuticals, diagnostic medicine, medical equipment, etc.

 

4)  Schedule

Sep. 2014     Planned establishment of Akita new company (name TBC)

Nov. 2014     Planned conclusion of agreement for transfer of company stock

Apr. 2015     Company division takes effect, transfer of stock and start of operations (planned)

 

5)  Effect on Business Results

Information regarding effect on business results will be announced at a later date.

 

 

  1. 2. Reorganization of Daiichi Sankyo Supply Chain Subsidiaries

 

1)  Reorganization Plan

Daiichi Sankyo is reorganizing three of its Japanese supply chain subsidiaries (DSPP, DAIICHI SANKYO CHEMICAL PHARMA CO., LTD. (DSCP) and DAIICHI SANKYO LOGISTICS CO., LTD. (DSLG)) into two companies by April 2015. The surviving two companies will be DSCP, with API production function, and DSPP, with dosage forms production and logistics function.

In accordance with this reorganization, the Onahama and Tatebayashi API production plants currently owned by DSPP will be taken over by DSCP. In addition, DSLG will be merged into DSPP.

 

2)  Overview of new Daiichi Sankyo Supply Chain Subsidiaries (2 companies, as of April 1, 2015)

 

API production company overview

Trade name

DAIICHI SANKYO CHEMICAL PHARMA CO., LTD.

Head office

3-5-1, Nihonbashi Honcho, Chuo-ku, Tokyo, Japan

Plants

Hiratsuka plant (4-4-8, Nishiyawata, Hiratsuka, Kanagawa, Japan)

 

 

Odawara plant (477, Takada, Odawara, Kanagawa, Japan)

Onahama plant (389-4, Izumimachi Shimokawa Aza Otsurugi, Iwaki, Fukushima, Japan)

Tatebayshi plant (2716‐1, Chiyodamachi Oaza Akaiwa Aza Kurakake, Oura, Gunnma, Japan)

Capital

50 million yen (100% owned by Daiichi Sankyo)

Main businesses

Manufacture and contract manufacture of API and intermediates for  pharmaceuticals

 

Dosage production/logistics company overview

Trade name

DAIICHI SANKYO PROPHARMA CO., LTD.

Head office

3-5-1, Nihonbashi Honcho, Chuo-ku, Tokyo, Japan

Plants

Hiratsuka plant (1-12-1, Shinomiya, Hiratsuka, Kanagawa, Japan)

Takatsuki plant (4-38, Aketacho, Takatsuki, Osaka, Japan)

Logistics Center

Tokyo Logistics Center (5-1, Asahi, Yoshikawa, Saitama, Japan)

 

Osaka Logistics Center (4-38, Aketacho, Takatsuki, Osaka, Japan)

Capital

100 million yen (100% owned by Daiichi Sankyo)

Main businesses

Manufacture and contract manufacture, purchase and sale, import and export, as well as storage and delivery of pharmaceuticals