UK-based healthcare and drug company GlaxoSmithkline plc (GSK, GSK.L) and Japanese drug maker Daiichi Sankyo Co. Ltd. (DSKYF.PK) said late Thursday that they have agreed to enter into a strategic alliance in vaccines business and form a vaccine joint venture in Japan. The joint venture will be named Japan Vaccine Co. Ltd., with both companies investing equally in the venture.
The joint venture will pave the way for new products to be brought to the Japanese market. It will initially sell key products of both companies,including Glaxo's cervical cancer vaccine Cervarix as well as rotavirus vaccine Rotarix, and Daiichi's seasonal flu vaccine.
The two companies said that the new vaccine company will combine the strength of both partners. This includes GSK's global development, know-how, pipeline and recent contributions to the Japanese vaccine market environment, and Daiichi Sankyo's development know-how in Japan, domestic production capability, and the domestic experience of sales and logistics.
Both the companies will hold a 50 percent stake each in the joint venture, which will be responsible for late stage development, marketing and sales of prophylactic vaccines in Japan.
The companies expect the JV to contribute to improving access to vaccines in Japan and also enable the introduction of new vaccines for which vaccination is recommended overseas.
The new company will be formed on April 2, 2012 and commence business on July 2, 2012. The joint venture will be capitalized at 100 million yen.
In 2011, GSK's vaccine sales in Japan were about 60 billion yen, while Daiichi Sankyo's sales were 17.8 billion yen.
Japan had an estimated 140 billion yen vaccine market in 2010, accounting for roughly 6 percent of the world's total. However, few vaccines have been recommended by Japanese health authorities, resulting in a lack of development by major drugmakers.
GSK closed Thursday's trading at $45.08, up $0.77 or 1.74 percent on a volume of 2.47 million shares. DSKYF.PK last traded on February 28 at $18.45 on a volume of 1,600 shares.
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