(New York, NY) October 31, 2007 – Kyowa Hakko Kogyo Co. Ltd. (Kyowa Hakko), Japan, the parent company of Kyowa Hakko USA, Kirin Pharma Company, Limited (Kirin Pharma), and Kirin Holdings Company, Limited (Kirin Holdings), Japan, have announced that they have entered into a strategic alliance agreement targeting their corporate business entities between the Kyowa Hakko Group and Kirin Group. The announcement was made by Yuzuru Matsuda, Kyowa Hakko president and CEO, Katsuhiko Asano, Kirin Pharma president and chairman of the board of directors and Kazuyasu Kato, president and CEO of Kirin Holdings on October 22 in Japan.
After the completion of the Tender Offer period, on April 1, 2008, Kirin Pharma will become a wholly-owned subsidiary of Kyowa Hakko through the Share Exchange between Kyowa Hakko and Kirin Pharma, and Kyowa Hakko will become a consolidated subsidiary of Kirin Holdings. The merge of Kyowa Hakko and Kirin Pharma is scheduled to be finalized October 1, 2008 with Kyowa Hakko as the surviving company. The new company name will be Kyowa Hakko Kirin Co., Ltd.
The newly formed strategic alliance will integrate Kyowa Hakko, a world leader in the development, manufacturing and marketing of pharmaceuticals, nutraceuticals and food products, and Kirin Pharma, the pharmaceutical division of the Kirin Group and allow both organizations to create a business synergy and pursue market initiatives. “Both companies bring tremendous strength in biotechnology and we will endeavor to develop a global, top-class research and development life sciences company in Japan,” said Yuzuru Matsuda, president and CEO of Kyowa Hakko.
Integration and alliances will be promoted in the non-pharmaceutical businesses that both the Kirin Group and Kyowa Hakko Group operate. The bio-chemical business of Kyowa Hakko is planning to spin off as a subsidiary by April 2010. The chemical business will focus on stabilizing its profitability and strengthening its competitiveness through alliances with other companies.
The strategic alliance will serve to enhance competitiveness and management efficiency, maximize synergy between the companies and help improve corporate values through further joint research and product development. “Our ability to integrate and create alliances with our businesses will further leverage our research and development groups,” said Charlie Kotani, president and CEO of Kyowa Hakko USA. “This alliance helps us build an even stronger scientific platform and rewards our customers with some of the best product research capabilities in the global marketplace.”
Kyowa Hakko, an international health ingredients manufacturer, has become a pioneer in the development and application of fermentation technology. Kyowa Hakko has maintained a constant commitment to research, developing innovative products and quality management and is guided by its corporate mission to improve the health and well-being of people worldwide. Headquartered in Tokyo, Japan, the company operates in North America as Kyowa Hakko USA, Inc. from its offices in New York and California. Internationally, Kyowa Hakko operates in more than 80 countries through over 50 corporate facilities, subsidiaries and affiliates. Kyowa Hakko USA offers manufacturers and formulators one of the industry's most extensive lines of over 50 amino acids and related compounds, including D-Amino acids and branch-chain amino acids, as well as nucleic acids, bio-products and fine chemicals. Kyowa Hakko also offers an array of branded ingredients including Cognizin™ Citicoline, Kyowa CoQ10™, Lumistor™ L-Hydroxyproline, Resilen™ Hyaluronic Acid and Setria™ Glutathione. For more information about Kyowa Hakko, visit www.Kyowa-USA.com or contact Kyowa at [email protected] or 212.319.5353.
# # # #