Toray takes stake in Japanese CMO to boost life sciences biz
Having taken a 20 per cent stake in MicroBiopharm Japan (MBJ) Toray has committed to expanding the CMO (contract manufacturing organisation) and ingredient supplier globally. Mitsui & Co owns the rest of MBJ, having bought it from Mercian last year, and also wants to expand the business.
“[The investment will] provide new impetus for the expansion of MBJ’s product categories”, Toray and Mitsui said in a joint statement. Mitsui has a history of investing in pharmaceutical contract service companies, including taking a stake in Quintiles Japan, and plans to use its experience to grow MBJ.
Japan-based Mitsui outlined plans to gain global market share by using its existing presence in the US, Europe, Asia and other regions. After buying the business in April 2011 Mitsui said it would use its global network to increase sales of anti-cancer agents manufactured by MBJ at its Japanese plants.
MBJ has two manufacturing plants and an office in Japan, plus a one-third stake in China-based Shenzhen Main Luck Pharmaceuticals which runs a capsule and injectables production facility.
Life sciences expansion
Mitsui and Toray both work across a range of businesses, such as textiles and metals, and are making investments to expand in life sciences. As outlined in its mid-term growth strategy, Toray will expand its life science business by leveraging assets from its other business units.
“[Toray] aims to expand its pharmaceuticals and medical products business through innovative research and development based on its original advanced technology”, the company said. In the strategy document Toray said it will combine biotechnology and nanotechnology to create bio-tools.
The CMO investment is part of this strategy. “Toray sees this investment as an opportunity to expand its technology sharing with MBJ, discover new drugs and strengthen its manufacturing infrastructure at the development stage”, the company said.
