Fuji Pharma buys DKSH site
OLIC is largest pharma CMO in Thailand
Japan’s Fuji Pharma has concluded an agreement to buy OLIC, the largest pharmaceutical contract manufacturer in Thailand, from Swiss-based distributor DKSH, a long-time partner, in a $53.9 million deal that should be completed by October. The two had been partners for some years, with DKSH supplying raw materials to Fuji Pharma.
OLIC has a plant in Ayutthaya that employs about 850 people. The company provides CMO services making over 550 products for some 35 multinationals in the pharmaceuticals, healthcare, confectionary and food supplement industries. It turned over €27.5 million last year, making a net loss of €467,000.
This transaction is described as part of Fuji Pharma's ‘Good to Great’ medium-term business plan for the years to 2015, which, said president and CEO Hirofumi Imai, means seeking “to grow overseas and to establish a new competitive edge as a pharmaceutical company”. Fuji Pharma is mainly active in hormone medicines for obstetrics and gynecology and injectable drugs for radiology.
Joerg Wolle, president and chief executive of DKSH, said that the deal is in line with a strategy is focusing on its core ‘market expansion services’ business. OLIC was a non-core legacy of a previous acquisition and will be more “optimally positioned in the hands of Fuji, which has significant expertise in this sector,” Wolle added.