On November 13, 2024, Otsuka HD (4578) announced that the U.S. subsidiary of its subsidiary Otsuka Pharmaceutical Factory (OPFA) has signed an agreement with U.S.-based medical device manufacturer ICU Medical to establish a new joint venture. This new company will take over ICU Medical’s infusion business to strengthen infusion product supply systems in the North American market.
Purpose of M&A
As Japan's largest infusion manufacturer, Otsuka Pharmaceutical Factory is known for its high-quality infusion products and stable supply chain and product development capabilities. Guided by the corporate philosophy “Otsuka-people creating new products for better health worldwide,” the Otsuka Group actively seeks to expand internationally to contribute to health globally.
The establishment of this joint venture is expected to enhance the stability and reliability of infusion product supply in the North American market. In addition to expanding market share in North America, the joint venture is expected to foster technological innovation in products. The collaboration will also address supply shortages caused by natural disasters such as hurricanes. By combining ICU Medical's foundational infusion production facilities with Otsuka Pharmaceutical Factory’s technical expertise, a stable supply of infusion products can be ensured.
OPFA will acquire a 60% stake in the new company, managing and operating it as a subsidiary. The impact of this M&A on Otsuka HD’s financial performance is expected to be minor.
Schedule
Announcement Date: November 13, 2024
Agreement Date: November 12, 2024
Expected Start Date for the New Company’s Operations: Early Q2 2025
