Chinese pharma company to invest in Japan

Sanjiu Enterprise Group, China's biggest pharmaceutical company based in Shenzhen, is reported to be acquiring a major stake in medium-sized Japanese drug maker Toa Seiyaku with the intention of turning it into a subsidiary to produce and market drugs in Japan.

Taking advantage of a drug production licence held by Toa, Sanjiu will become the first Chinese company to manufacture and sell drugs in Japan. The company intends to release five own-brand products in October, including a cold remedy and a drug for nasal inflammation.

Sanjiu will buy approximately 55% of an allotment of new shares to be issued shortly by Toyoma-based Toa, while 5% will be purchased by Hac Kimisawa, a major drugstore operator that already has a tie-up with Sanjiu.