We hereby announce that Nissha Co., Ltd. (hereinafter, “the Company”), has concluded a share purchase agreement with the shareholders of Zonnebodo Pharmaceutical Co., Ltd. (hereinafter, “Zonnebodo Pharmaceutical”), thus making it a subsidiary. The acquisition is scheduled to be completed towards the end of November 2019.

In the “medical” market*1, the Company has focused on Drug Delivery Systems*2 (DDS), and has been considering an entry to the pharmaceutical market. Specifically, Nissha has been developing film type of pharmaceuticals by use of our core technologies such as printing and coating that the Company has cultivated since it was founded. Film type of pharmaceuticals are expected to contribute to improvements in dosage compliance and quality of life (QOL) for patients. The market is forecast to expand as the form of dosage shifts away from traditional pills and injections.

Zonnebodo Pharmaceutical’s history stretches back eighty years, and it is engaged in manufacturing and marketing authorization holder of in-house developed prescription pharmaceuticals (brand-name drugs) and quasi drugs. It manages long-selling products such as tablets for mitigating tinnitus and “Renovigo” for the prevention of tooth decay, and these items are sold at pharmacies and drug stores nationwide. Zonnebodo Pharmaceutical also possesses sophisticated manufacturing technologies and quality control capabilities in relation to a variety of drug forms, such as tablets, liquids and powders, and is building a robust business foundation in the pharmaceutical market.

With this acquisition, the Company obtains the business foundation necessary to put film type of pharmaceuticals on the market, including business license, GMP compliant manufacturing facilities, quality control systems, and sales channels. By means of the core technologies it has cultivated since it was founded, as well as other innovations, the Company aims to make a corporate contribution to the pharmaceutical market, as it has in other markets, in such a way as to enrich people’s lives.

*1 The Company has been currently operating the Sixth Medium-term Business Plan (three-year plan) centering on the growth by reorganizing and optimizing its business portfolio. We have set the markets of mobility (automotive), medical devices and sustainable packaging materials as our focused markets, in addition to the mainstay consumer electronics (IT), and aim to develop well-balanced business bases and enhance our corporate value by implementing global based growth strategy.
*2 A dosing system designed to optimize operation so that the required volume of drugs is administered to the required part of the body for only the required length of time.

The impact of this transaction on the Company’s consolidated results for the current fiscal year is expected to be negligible. Going forward, if revisions to business forecasts or the announcement of other matters become necessary, we will make prompt disclosure of the same.