Mitsui to buy MBS to bolster CMO and strengthen in China

By Nick Taylor

- Last updated on GMT

Mitsui is to boost its intermediate, API and finished product CMO business and expand in China by buying MBS.

Completing the acquisition will give Mitsui access to fermentation and enzymatic technology used by MBS in the production of active pharmaceutical ingredients (API). MBS, a wholly owned Japanese subsidiary of Mercian, also sells and manufactures in China through a joint venture.

Japan-based Mitsui plans to use the acquired assets to boost its own contract manufacturing operations. Incorporation of MBS’ fermentation and enzymatic technologies will strengthen production at Mitsui. Also, Mitsui will gain access to a sales network on mainland China.

While developing its capabilities as a contract manufacturing organisation (CMO) Mitsui will also strengthen MBS. Firstly, Mitsui intends to combine MBS’ technologies with those possessed by other CMOs. MBS will also launch new products in China after Mitsui takes control.

Finally, Mitsui will sell MBS’ anti-cancer agents, its leading products, through its own global network. By taking these steps Mitsui hopes to increase the corporate value of MBS.

Operations at MBS

In 2010 MBS, which employs 220 people, generated sales of JPY7.6bn ($93m). Over the same period Shenzhen Main Luck Pharmaceuticals had revenues of RMB470m ($72m). MBS owns a 34.2 per cent stake in Shenzhen Main Luck Pharmaceuticals.

MBS has manufacturing facilities in Yashiro and Iwata, Japan. The Iwata site also houses a laboratory. Shenzhen Main Luck Pharmaceuticals has a production site in China capable of manufacturing capsules and injectables.

Earlier this month Mercian spun out its pharmaceuticals and chemicals units to create MBS. Mercian will now focus on its wine and livestock feedstuffs businesses.

Mercian expects to complete the deal by July 1 2011.

Related news

Show more

Related product


Advancing therapeutics for myeloma

Recipharm AB | 04-Sep-2017 | Case Study

Multiple myeloma is the second most common blood cancer in the world and despite survival rates increasing over the last decade, there remains a requirement...

Related suppliers