Fuji buys Thai manufacturing facility from DKSH
pharmafile | August 9, 2012 | News story | Manufacturing and Production |Â Â DKSH, Fuji, OLIC, ThaiÂ
Japan’s Fuji Pharma has bought Thailand’s largest pharmaceutical contract manufacturing organisation OLIC from current owner DKSH.
In a deal that marks its first major expansion into overseas production, the transaction has been valued at around $53 million and it is expected to close in October.
Building its presence outside Japan is one of the key objectives in Fuji Pharma’s medium-term business plan, according to the firm’s president and chief executive Hirofumi Imai, while DKSH said it was divesting the unit as part of a rationalisation of its service portfolio.
OLIC has been in operation for more than 50 years and provides contract manufacturing services to pharma as well as the food industry, employing around 850 staff and with revenues of around one billion baht ($38m) last year.
Its facility in Ayutthaya makes around 550 different products for 35-plus customers, according to DKSH’s website, and has been working with Fuji Pharma for several years.
DKSH describes itself as a market expansion services provider, helping client companies grow their brands in Asian markets, but wants to narrow its focus to core areas such as sourcing, marketing, sales, distribution to after-sales services, according to its chief executive Joerg Wolle.
“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,” he added.
OLIC swung to a loss of 18m baht last year after making a 33m baht profit in 2010, and like a lot of companies in the CMO sector has been affected by rising raw materials and energy prices.
Imai said that OLIC: “fits perfectly with our existing operations and business in Japan and Asia, and we are committed to investing and growing OLIC even more, and further enhancing its already well-established reputation and performance.
“By utilising OLIC as a manufacturing base, we will strive to further the production, distribution and use of Fuji Pharma products starting in Asia and across the world”, he added.
Phil Taylor
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