Following a biopharma industry trend, Kyowa Kirin is narrowing its focus by offloading some mature medicines.
The Japanese drugmaker will spin its international established medicines portfolio into a new joint venture with German company Grünenthal. The franchise includes 13 brands in the Europe, Middle East and Africa (EMEA) region, according to Kyowa Kirin.
For a 51% stake in the new firm, Grünenthal is paying Kyowa Kirin 70 million pounds sterling ($85 million). As part of the deal, Kyowa Kirin retains an option to bow out and leave the business in Grünenthal’s full custody in the first quarter of 2026. Grünenthal intends to purchase the remaining shares and take full control at that time, the two companies said.
In explaining its reason for the deal, Kyowa Kirin said it “strives to create and deliver novel medicines with life-changing value.” Besides, COVID-19 and increased geopolitical risks have created a “challenging business environment,” the company added.
“There is an urgent need to enhance efficiency and ensure a stable supply of high-quality pharmaceuticals amid rapidly rising costs, including infrastructure, and to optimize growth strategies,” Kyowa Kirin explained.
The 13 brands covered in the agreement span across six therapeutic areas, including pain management, a focus area which Grünenthal is known for. The products include Astral and PecFent for cancer pain, Moventig for opioid-induced constipation and Adcal-D3 for osteoporosis, according to the companies. Together, the portfolio generated about 200 million euros ($210 million) revenues last year.