NEWS
Announcement of Acquisition of Shares (Subsidiary Acquisition) of
SHIGAKEN. PHARM. IND. CO., LTD.
December 24, 2024
Nissha Co., Ltd.
Nissha Co., Ltd. (hereinafter “the Company”) hereby announces that it has signed a stock purchase agreement with shareholders of SHIGAKEN. PHARM. IND. CO., LTD. (hereinafter “Shigaken Pharma”) to make it a subsidiary of the Company. The acquisition is scheduled to be completed in early January 2025.
The Company has established the Sustainability Vision for 2030, aiming to create economic and social value by solving global social issues related to the medical, mobility, and sustainable materials markets by integrating and orchestrating of diverse talents of our employees and technologies. Especially in the medical market, we are targeting net sales of ¥150.0 billion in 2030, including sales of ¥20.0 billion for the pharmaceuticals business.
In 2019, the Company acquired Zonnebodo Pharmaceutical Co., Ltd. (presently Nissha Zonnebodo Pharma Co., Ltd.), which is a manufacturing and marketing authorization holder of prescription pharmaceuticals and quasi-drugs, marking our entry into the domestic pharmaceuticals market. Focusing on the drug delivery system*1, the Company has proceeded with the development of film-type pharmaceuticals (oral thin films and transdermal patches, etc.) by utilizing our core technologies.
Established in 1943, Shigaken Pharma is a manufacturing and marketing authorization holder of pharmaceuticals and quasi-drugs. It has carved out a strong position in the market with a contract design/development and manufacturing organization (CDMO) business model mainly for over-the-counter (OTC) drugs as cold medicines, analgesic antipyretics and others and has an extensive customer base. Furthermore, Shigaken Pharma possesses advanced production technologies and quality management abilities enabling it to deal with not only diverse dosage forms, such as solid and liquid formulations, but also various packaging types.
In the pharmaceuticals market, demand is increasing with each year as the population continues to age. Additionally, recent supply shortages have posed a societal issue, making maintenance of stable supply a key challenge. In the OTC market as well, demand is growing due to a heightened awareness of self-medication*2 and the spread of switch OTC drugs*3. In such a market environment, pharmaceutical manufacturers are concentrating their resources on product planning and marketing activities while expanding the outsourcing of processes from drug development through manufacturing. In the OTC market, in particular, in addition to efficient and flexible manufacturing responses, comprehensive services, including packaging processes are being demanded, and in light of such needs, the Company expects demand for CDMO to grow steadily in the future.
With this acquisition, the Company will be able to enter the pharmaceutical CDMO business. By combining Shigaken Pharma’s ability to respond to diverse dosage forms and its abundant track record with the Group’s managerial resources, manufacturing and design abilities, quality management capabilities, and advanced production technologies, namely automation and digital transformation (DX), the Company aims to strengthen the manufacturing capabilities of Shigaken Pharma. Additionally, by leveraging Shigaken Pharma’s extensive customer base, the Company seeks to actively engage in marketing activities to grow sales of film-type pharmaceuticals and create new business opportunities to expand the scale of the pharmaceuticals business.
Through these, we will continue to further pursue initiatives that work to contribute to the stable supply and quality improvement of pharmaceuticals and realize our Sustainability Vision.
*1: Drug Delivery System: Dosing system designed for efficiently delivering required amount of drug into targeted sites in body for required time.
*2: Self-medication: Heath management whereby consumers themselves treat mild physical ailments with OTC drugs, etc.
*3: Switch OTC drugs: Drugs that had been prescription-only but have been approved to be sold as OTC drugs.
The Company has established the Sustainability Vision for 2030, aiming to create economic and social value by solving global social issues related to the medical, mobility, and sustainable materials markets by integrating and orchestrating of diverse talents of our employees and technologies. Especially in the medical market, we are targeting net sales of ¥150.0 billion in 2030, including sales of ¥20.0 billion for the pharmaceuticals business.
In 2019, the Company acquired Zonnebodo Pharmaceutical Co., Ltd. (presently Nissha Zonnebodo Pharma Co., Ltd.), which is a manufacturing and marketing authorization holder of prescription pharmaceuticals and quasi-drugs, marking our entry into the domestic pharmaceuticals market. Focusing on the drug delivery system*1, the Company has proceeded with the development of film-type pharmaceuticals (oral thin films and transdermal patches, etc.) by utilizing our core technologies.
Established in 1943, Shigaken Pharma is a manufacturing and marketing authorization holder of pharmaceuticals and quasi-drugs. It has carved out a strong position in the market with a contract design/development and manufacturing organization (CDMO) business model mainly for over-the-counter (OTC) drugs as cold medicines, analgesic antipyretics and others and has an extensive customer base. Furthermore, Shigaken Pharma possesses advanced production technologies and quality management abilities enabling it to deal with not only diverse dosage forms, such as solid and liquid formulations, but also various packaging types.
In the pharmaceuticals market, demand is increasing with each year as the population continues to age. Additionally, recent supply shortages have posed a societal issue, making maintenance of stable supply a key challenge. In the OTC market as well, demand is growing due to a heightened awareness of self-medication*2 and the spread of switch OTC drugs*3. In such a market environment, pharmaceutical manufacturers are concentrating their resources on product planning and marketing activities while expanding the outsourcing of processes from drug development through manufacturing. In the OTC market, in particular, in addition to efficient and flexible manufacturing responses, comprehensive services, including packaging processes are being demanded, and in light of such needs, the Company expects demand for CDMO to grow steadily in the future.
With this acquisition, the Company will be able to enter the pharmaceutical CDMO business. By combining Shigaken Pharma’s ability to respond to diverse dosage forms and its abundant track record with the Group’s managerial resources, manufacturing and design abilities, quality management capabilities, and advanced production technologies, namely automation and digital transformation (DX), the Company aims to strengthen the manufacturing capabilities of Shigaken Pharma. Additionally, by leveraging Shigaken Pharma’s extensive customer base, the Company seeks to actively engage in marketing activities to grow sales of film-type pharmaceuticals and create new business opportunities to expand the scale of the pharmaceuticals business.
Through these, we will continue to further pursue initiatives that work to contribute to the stable supply and quality improvement of pharmaceuticals and realize our Sustainability Vision.
*1: Drug Delivery System: Dosing system designed for efficiently delivering required amount of drug into targeted sites in body for required time.
*2: Self-medication: Heath management whereby consumers themselves treat mild physical ailments with OTC drugs, etc.
*3: Switch OTC drugs: Drugs that had been prescription-only but have been approved to be sold as OTC drugs.
Overview of SHIGAKEN. PHARM. IND. CO., LTD.
| Location | 879 Taki, Kokacho, Koka, Shiga |
|---|---|
| Representative | Haruki Yoshikawa (President) |
| Established | 1943 |
| Employees | 94 (as of end-of November 2024) |
| Business Outline | Manufacturing and marketing authorization holder of pharmaceuticals |
| Net sales | ¥4,877 million (fiscal year ended September 2024) |
| Official website | https://www.shigaken-pharm.co.jp/ |
Shigaken Pharma’s Key Customers
- Inabata & Co., Ltd.
- Ohara Pharmaceutical Co., Ltd.
- KYUSHIN PHARMACEUTICAL CO., LTD.
- Kowa Company., Ltd.
- Sato Pharmaceutical Co., Ltd.
- Shiono Chemical Co., Ltd.
- Shiraishiyakuhin.co., Ltd.
- Zenyaku Kogyo Co., Ltd.
- DAIICHI SANKYO HEALTHCARE CO., LTD.
- TOKIWA Pharmaceutical Co., Ltd.
Outlook Going Forward
The company is currently investigating the impact of this acquisition on its consolidated business results. Details will be disclosed as soon as available.
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