Roche has announced that its ownership stake in Chugai will increase from 50.1 per cent to 59.9 per cent following the successful completion of the tender offer which started on 23 May.
Chugai shareholders had the opportunity to tender their shares at a price of Yen 1,730 per share, which reflects a premium of 11.7 per cent over Chugai's share price of Yen 1,549 at the close of trading on 21 May 2008. The transaction is based on Roche's right to increase its stake to 59.9 per cent at any time after the 5th anniversary of its alliance with Chugai, which was formed in October 2002.
Chugai Pharmaceutical, specialized in prescription pharmaceuticals and based in Tokyo, is one of Japan's leading research-based pharmaceutical companies with strengths in biotechnology products. Since the start of the strategic alliance with Roche in October 2002, Chugai has been actively involved in prescription pharmaceutical R&D activities in Japan and abroad as an important member of the Roche Group. Specifically, Chugai is working to develop innovative products with global applications, focusing on the disease areas of oncology, renal disease, and bone and joint. In Japan, Chugai's research facilities in Gotemba and Kamakura are collaborating to develop new pharmaceuticals and Ukima is conducting research for technology development for industrial production. Overseas, Chugai Pharma USA and Chugai Pharma Europe are engaged in clinical development activities in the United States and Europe. The consolidated sales in 2007 of Chugai totalled 344.8 billion yen and the operating profit was 66.7 billion yen.