DKSH, a market expansion services provider with a focus on Asia, has agreed to divest OLIC, a contract manufacturing operation of pharmaceutical products in Thailand, to Fuji Pharma of Japan. The transaction is subject to customary closing conditions.
“This decision is in line with our strategy for sustainable profitable growth, where our focus is on our core competency as a provider of market expansion services, from sourcing, marketing, sales, distribution to after-sales services,” said Dr. Joerg Wolle, president and CEO of DKSH Group. “The OLIC contract manufacturing facility is a heritage, non-core activity of DKSH, and is more optimally positioned in the hands of Fuji which has significant expertise in this sector. DKSH will be investing the proceeds into our core business to create higher value for shareholders.
The acquisition by Fuji Pharma expands the company’s plans outside of Japan. Fuji Pharma is a company with significant manufacturing expertise and committed to establishing a strong platform in South East Asia.
“OLIC fits perfectly with our existing operations and business in Japan and in Asia, and we are committed to investing and growing OLIC even more, and further enhancing its already well-established reputation and performance,” said Hirofumi Imai, president and CEO of Fuji Pharma.
Charles Toomey, global head business unit healthcare, DKSH, added, “Fuji’s decision to expand its operations into Thailand is proof of the increasing trend of Asian companies investing and growing in their own region, thereby driving inner-Asian growth.”
Prior to the agreement, DKSH had been providing Fuji Pharma with high-quality raw materials for the manufacturing of their products for several years.