Friday, December 7, 2012

Otsuka, Mitsui and Claris Life Science enter into a Joint Venture

Otsuka Holdings announced today that Otsuka Pharmaceutical Factory, Inc,(OPF)  a subsidiary of Otsuka Holdings, will establish a joint venture in India with Mitsui & Co., Ltd. and Claris Lifesciences Limited.

Ownership of  the Joint Venture

Otsuka, Mitsui and Claris reached an agreement that Otsuka and Mitsui will jointly acquire capital in a company specialized IV solutions business that will be newly established by Claris, one of the leading manufacturers and distributors of IV solutions and generic pharmaceuticals in India.  . The tentative name of the new entity would be "Claris Otsuka"and the equity ownership for each company will be; Otsuka: 60%, Mitsui: 20%, and Claris: 20%.

Valuation and Business of the Joint Venture

Claris will contribute to the Joint Venture company its business of Common Solutions, Anti-Infectives, Plasma Volume Expanders and Parenteral nutrition therapies. Two out of the five plants will be transferred to Claris Otsuka. The Joint Venutre company will also introduce OPF's speciality products in India and Emerging markets. The business transferred contributes 55 percent of Claris current revenues.
The business transferred has been valued at 1313 crores and Claris will receive INR 1050 crores or INR 10.5b from Otsuka and Mitsui (approximately 16 billion JPY or USD 200million) for the 80 percent stake in the JV.