-- Kyorin Pharmaceutical (TYO:4569) will transfer its generic drug business under a memorandum of understanding with Daito Pharmaceutical (TYO:4577) and partners as it shifts focus to new drug operations, according to a Thursday filing on the Tokyo Stock Exchange.
Kyorin Pharmaceutical plans to transfer its subsidiary Kyorin Remedio and related production facilities to a new platform company to be set up by Daito and co-investors, aiming to support a stable supply in Japan's generic drug market.
The company is pursuing the move as it prioritizes growth in new drug development while addressing structural challenges in the generic drug sector, including weak profitability and supply disruptions.
Kyorin Pharmaceutical expects to sign a definitive agreement by September, with the transfer targeted for April 2027.