Eisai and Nichi-Iko Pharmaceutical Enter Comprehensive Collaboration Agreement on Generic Drugs Business in China

Tokyo, November 13, 2019 /PRNewswire/ -- Eisai Co., Ltd. (Headquarters: Tokyo; CEO: Haruo Naito; hereinafter referred to as “Eisai”) and Nichi-Iko Pharmaceutical Co., Ltd. (Headquarters: Toyama; President and CEO: Yuichi Tamura; hereinafter referred to as “Nichi-Iko”) recently announced that they have entered into a comprehensive cooperation agreement regarding their generic drug business in China (hereinafter referred to as the “Agreement”).

China’s pharmaceutical market is the second largest in the world, after the United States, with generic drugs accounting for more than 70% of its market value. Furthermore, driven by rapid population aging and government policies promoting the generic drug sector, the market for generics is expected to continue growing. In addition, the Chinese government is actively establishing a stable supply system for high-quality generic drugs that are equivalent to original brand-name drugs, aiming to enhance the quality of generics. Measures include the introduction of a consistency evaluation system for generic drug quality and giving priority to generics that pass such evaluations in government centralized procurement programs.

Under this agreement, Eisai Co., Ltd. and Nippon Chemiphar Co., Ltd. aim to strengthen their pharmaceutical business in China by introducing high-quality generic drugs marketed by Nippon Chemiphar in Japan, which have established market recognition. The two companies will carefully select products tailored to the needs of the Chinese market. Upon obtaining import and sales approval in China, Eisai will commercialize these products through its subsidiaries in China. Eisai and Nippon Chemiphar plan to select the first two products within the current fiscal year, followed by the launch of one to two additional products annually, commencing from fiscal year 2024.

Under this agreement, Eisai has further strengthened its generic drug business in China since entering the Chinese market in 2015, in order to meet broader healthcare needs in China. As part of the strategic priorities “Business Expansion” and “Global Operations” under its eighth Medium-Term Management Plan, “NEXUS∞,” Nihon Yakuhin Kogyo Co., Ltd. aims to leverage Eisai’s business foundation in China to enter the Chinese market.

In March 2018, Eisai Co., Ltd. and Nihon Pharmaceutical Industry Co., Ltd. signed a strategic alliance agreement regarding their generic drug business in Japan. By developing the partnership between Eisai and Nihon Pharmaceutical Industry Co., Ltd. in China, both companies will strive to expand their contributions to patients in China and work to broaden and develop their operations in the Chinese market.

This agreement had no impact on the financial performance of the two companies in fiscal year 2019.Sound.