Thursday, September 3, 2009

Dainippon to buy U.S. drug firm Sepracor for $2.6 billion

PhotoBOSTON/TOKYO (Reuters) - Dainippon Sumitomo Pharma Co Ltd agreed on Thursday to buy U.S. drugmaker Sepracor Inc for $2.6 billion, giving the Japanese firm a big, local sales force in the world's largest drugs market.

The deal is the latest in a string of overseas acquisitions by Japanese drugmakers keen to grow outside a mature home market and build product pipelines before key drug patents expire.

Dainippon, Japan's No.7 drugmaker by revenues, will gain a sales force of 1,200 familiar with central nervous disorders as it looks to promote its experimental schizophrenia drug lurasidone, which has performed well in late-stage trials.

It will also gain Sepracor's insomnia drug Lunesta, asthma drug Xopenex and an experimental epilepsy drug.

"We anticipate our business will shrink if we focus only on Japan, where medical prices are under pressure," Dainippon Sumitomo President Masayo Tada told a news conference. link...

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