Discussion by Asahi Chemical Industry Co.,
Ltd., Hoechst Roussel Vet GmbH (a member of Hoechst Group),
and Mitaka Pharmaceutical Co., Ltd. (a member of Asahi Chemical
Group) for a strategic alliance in the marketing of animal
health products in Japan, has led to their basic agreement
on a share acquisition by Hoechst Roussel Vet in Mitaka Pharmaceutical
and transfer of distribution rights of Hoechst Roussel Vet's
products to Mitaka Pharmaceutical.
It has been agreed that Mitaka Pharmaceutical
will become a 50/50 joint-venture in three years time between
Asahi Chemical Industry and Hoechst Roussel Vet through the
acquisition of shares in Mitaka Pharmaceutical by Hoechst
Roussel Vet, which is currently owned 51% by Asahi Chemical
Industry and 49% by Mr. Shohei Setoguchi who is the chairman
and representative director of Mitaka Pharmaceutical and his
family. The details will be confirmed in a definitive agreement
among the parties concerned on 1 October, 1997.
It is expected that Mitaka Pharmaceutical
will strengthen its position in the Japanese animal health
market by obtaining a favorable source of new products through
its strategic alliances with Hoechst Roussel Vet, who have
strong leadership in research and development in this field.
Hoechst Roussel Vet is also expected to benefit
by the strengthening of the marketing of its products in Japan,
which is the world's second largest animal health market,
since Mitaka Pharmaceutical will be responsible for the registration
and marketing of Hoechst Roussel Vet's products in Japan with
its established position, expertise and marketing channels
in this field.
In addition, Mitaka Pharmaceutical has one
of the newest GMP production facilities in Japan, which can
lead to extension of the alliance to production of Hoechst
Roussel Vet's products.
Starting with the establishment of this partnership,
Asahi Chemical Industry and Hoechst Roussel Vet are expecting
to further deepen their alliance.
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