Chugai Pharmaceutical Co and Taiyo Holdings Co have announced that they have entered into an agreement, under which Chugai and F. Hoffmann-La Roche, Ltd. will transfer the marketing authorizations, including marketing and manufacturing rights, of 13 long-term listed products manufactured and marketed in Japan by Chugai to Taiyo Pharma Co., Ltd., a wholly owned subsidiary of Taiyo Holdings.

Chugai aims to contribute to patients and the medical community through the creation of innovative medical products and services based on its business philosophy, “Innovation all for the patients.” The decision to transfer these long-term listed products was taken to reinforce Chugai’s focus on creating innovation, supporting the goal of ensuring sustainable growth by optimizing investment in business segments and products with potential to enhance the company’s competitive advantage.

As described in the mid-term business plan “Next Stage 2020” announced on June 7, 2017, Taiyo Holdings has conducted feasibility studies and examinations over years, intending to make an entry into the medical and pharmaceutical business, an area that Taiyo Holdings deemed to be promising as a new wing of business or a growth driver to lessen its considerable dependence on the existing business in materials for printed wiring boards (PWB business). On August 2, 2017, Taiyo Holdings set up a wholly owned subsidiary engaged in the pharmaceutical business towards the transfer of the Products. Taiyo Holdings is determined to take this opportunity and make a full-scale entry into the pharmaceutical business.

The 13 products covered by the agreement will continue to be marketed under the Chugai brand to ensure uninterrupted supply during the handover period. The marketing and manufacturing rights will be transferred to Taiyo Pharma on a step-by-step basis, starting from April 2018.

Taiyo Holdings, Taiyo Pharma, and Chugai will cooperate closely to achieve a smooth transfer of marketing authorization and marketing activities regarding the Products. Until completion of the transfer, Taiyo Pharma and Chugai will work together and engage in activities aimed at the provision of information suitable for the treatment of diseases, and the promotion of proper use.

The transfer of Products is not expected to have a material impact on the consolidated financials of Chugai for the fiscal year ending December 2017. The impact on the consolidated financials for the fiscal year ending December 2018 will be announced on the release of the financial results for the fiscal year ending December 2017 scheduled in February 2018.

Taiyo Holdings is currently reviewing the impact from the transfer of Products on the consolidated financials for the fiscal year ending March 2018. If the announcement of the revision of the financial forecast is required after the impact is determined, it will be announced promptly.