Fuji Pharma acquires OLIC Thailand

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Fuji Pharma acquires OLIC Thailand

Home/Pharma News | Posted 24/08/2012 0 Post your comment

Fuji Pharma Co Ltd announced on 3 August 2012 that it has entered into an agreement to acquire the shares of OLIC (Thailand) Ltd, the largest pharmaceutical contract manufacturer in Thailand.

The acquisition is a significant step towards Fuji Pharma’s aim to grow overseas. It will gain access to OLIC’s factory, manufacturing know-how and its customer base [1]. The new Japanese owner has significant manufacturing expertise and is committed to growing overseas and establishing a new competitive edge as a pharmaceutical company.

OLIC
OLIC, based in Ayutthaya province of Thailand, provides contract manufacturing for pharmaceutical and other related products. Major pharmaceutical firms across the world contract specialized manufacturing services to OLIC, and with extensive expertise built up over the years, the company is highly regarded in the industry with a proven track record for high quality products. OLIC has a wide client base of major pharmaceutical firms from Europe, Japan, USA, and across the rest of the globe. Additionally, the products manufactured by OLIC are distributed not only in Thailand, but across Asia and the rest of the world. Fuji Pharma has been using OLIC since 2000. With over 850 employees, OLIC’s production site sits on over 80,000 square meters of owned land is one of the foremost industrial complexes in Thailand.

Non-core activity for DKSH
The company selling OLIC is a Swiss trading firm. Dr Joerg Wolle, President and Chief Executive Officer, said the sale is in line with the group’s strategy to refocus on its core business as a provider of market expansion services, from sourcing, marketing, sales and distribution to after-sales services. The OLIC contract manufacturing facility is a heritage, non-core activity of DKSH [2].

He added that this decision was in line with its strategy for sustainable profitable growth. ‘After selling OLIC, DKSH will be investing the proceeds into our core business to create higher value for shareholders,’ he said.

Fuji
Fuji Pharma is mainly engaged in the manufacture and sale of medical products–hormone medicines for obstetrics and gynaecology, as well as injectable drugs for the radiological uses. ‘OLIC fits perfectly with our existing operations and business in Japan and Asia, and we are committed to investing and growing OLIC even more, and further enhancing its already well-established reputation and performance,’ said Mr Imai, President and Chief Executive Officer of Fuji Pharma in a press statement adding: ‘By using OLIC as a manufacturing base, we will strive to further the production, distribution and use of Fuji Pharma products starting in Asia and across the world.’

Fuji Pharma will spend Swiss francs 52.5 million (Euros 33.7 million) for the 99.91% stake in OLIC. With a plant in Ayutthaya, Thailand, OLIC posted revenue of Baht 1.07 billion (Euros 27.5 million) in fiscal 2011 and Baht 1.39 billion in 2010. OLIC made a net loss of Euros 470,000 last year, compared with a net profit of Euros 850,000 reported for the previous year.

Source: Bangkok Post Business