Alliance boosts Chugai

Japanese pharmaceutical manufacturer Chugai says its alliance with Roche is likely to deliver stronger profits growth than originally expected.

It has increased its revenue targets for fiscal 2005 to ¥315bn (€3bn), ¥15bn (€0.1bn) higher than estimated in December last year. The alliance is also expected to be accretive to earnings next year ; the first full year of operation and one year earlier than originally envisaged.

By fiscal 2005 new Chugai is targeted to become the fourth largest ethical drugs company by sales in Japan, with a 5% market share and holding the leading position in the areas of cancer, renal and bone diseases. It will boast a substantially enhanced product line-up and r&d pipeline, and greatly strengthened international access. Similarly, the creation of the new Chugai allows Roche to secure a firm foothold in the world's second largest pharmaceutical market.

The transaction is expected to be approved at the Chugai AGM at the end of June.

As a result of the planned merger, Roche has sold to US company Amgen the assets and business related to filgrastim and pegfilgrastim in the European Union, Switzerland and Norway because Chugai is commercialising a competitive drug. Amgen will pay Roche $137.5m (€150.3 m) for this acquisition. Roche will continue as the licensee for filgrastim and pegfilgrastim in certain countries in Eastern Europe, the Middle East, Africa, Asia and Latin America.

Filgrastim and pegfilgrastim are white-cell boosting therapeutics that are used to decrease the incidence of neutropenia, which can lead to patients contracting potentially life threatening infections following chemotherapy.