Sawai Forms Strategic Alliance with Sumitomo Corporation

Upsher-Smith Laboratories, LLC (Upsher-Smith) reported that its parent company, Japan-based Sawai Pharmaceutical Co., Ltd. (Sawai) will sell a 20 per cent stake in its US subsidiary (Sawai America Inc) to Sumitomo Corporation of Americas (SCOA), a subsidiary of Sumitomo Corporation, one of Japan’s leading general trading houses. Under the terms of the agreement, SCOA will acquire the stake for consideration of $211 million. The transaction is expected to close by the end of March 2018.

Sumitomo Corporation is a major organizer of multinational projects, an expediter of ideas, an important international investor and financier, and a powerful force for distribution of products and global communications through a network of offices worldwide. Its core business units include Tubular Products, Environment and Infrastructure, Steel and Non- Ferrous Metals, Transportation and Construction Systems, Chemicals and Electronics, Media and IOT Applications, Real Estate, Mineral Resources and Energy, and Food.

"Sumitomo's investment in our US subsidiary and its management participation in Upsher-Smith will allow us to benefit from its experience, knowledge and network in the global business arena in areas such as sourcing of active pharmaceutical ingredients (APIs) and product introduction," said Mitsuo Sawai, President of Sawai. "By leveraging the unique strengths of the three companies, namely Sawai, Upsher-Smith and Sumitomo Corporation, we will continue to enhance our global presence, including the US business, to accelerate growth with the goal of becoming 'a Globally Recognized Generics Company'."

Added Rusty Field, President and CEO of Upsher-Smith, "We are excited by the potential of this partnership and look forward to increasing our capacity for acquisition and discovering broader strategic growth opportunities."