Nov. 13, 2017
Sumitomo Corporation

Sumitomo Corporation Participates in Generic Pharmaceutical Business in the U.S.

Sumitomo Corporation (head office: Chuo-ku, Tokyo; Representative Director, President and Chief Executive Officer: Kuniharu Nakamura), through Sumitomo Corporation of Americas (head office: New York, the United States; Representative: Shingo Ueno; hereinafter “SCOA”), will make an investment in the business of Upsher-Smith Laboratories, LLC (head office: Minnesota, the United States; CEO: Rusty Field; “USL”), an American generic pharmaceutical company. All stake of USL are held by Sawai America LLC (Note), the subsidiary of Sawai Pharmaceutical Co., Ltd. (head office: Yodogawa-ku, Osaka; President: Mitsuo Sawai; “Sawai Pharmaceutical”). SCOA plans to acquire a 20% stake in Sawai America LLC.

The generic pharmaceutical market in the United States is expected to continue growing well into the future as the use of generic drugs is encouraged as a means of curbing medical expenditures against the background of an increasing aging population. USL is a pharmaceutical company that has been engaged in research and development, manufacture and sale of generic medications in the United States. USL is currently selling about 30 product items, mainly in solid oral dosage forms, and has 30 drug pipelines (drugs under development). It also boasts strong development and sales capabilities as well as a solid customer base, which it has cultivated through owning and operating the business over many years. In May 2017, USL became a subsidiary of Japanese generic pharmaceutical manufacturer Sawai Pharmaceutical and is currently adding Sawai Pharmaceutical’s generics to its product portfolio, promoting business deployment by leveraging the advantages of both companies.

Sumitomo Corporation through this acquisition is entering into the generic pharmaceutical business in the United States, which constitutes the world’s largest pharmaceutical market. In addition to helping Sawai Pharmaceutical in operating USL’s business, Sumitomo Corporation will endeavor to enhance USL’s corporate value by employing the Sumitomo Corporation Group’s global network and expertise to put new products on the market. Sumitomo Corporation and SCOA also seek to contribute to promoting physical and mental human health by widely supplying high-quality generic medications in the United States.

Note: Sawai America Inc., the current holder of all stake of USL, is scheduled to convert into a limited liability company (Sawai America LLC) before the said acquisition by SCOA.

■Profile of Upsher-Smith Laboratories, LLC
Established 1919
Head office address 6701 Evenstad Drive, Maple Grove, Minnesota 55369, USA
Representative Rusty Field, President and CEO
Net sales USD397 million (2016)
Number of employees Approx. 600
Business Manufacture and sale of generic medications
■Profile of Sawai Pharmaceutical Co., Ltd.
Established 1948
Head office address 5-2-30, Miyahara, Yodogawa-ku, Osaka
Representative Mitsuo Sawai, President
Net sales JPY132.4 billion (for the year ended March 2017, consolidated)
Number of employees 2,502 (for the year ended March 2017, consolidated)
Business Manufacture and sale of generic medications

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■Sumitomo Corporation’s Material Issues
Sumitomo Corporation Group positions “Six Material Issues to Achieve Sustainable Growth with Society” as an important factor in developing business strategies and in the decision-making process for individual businesses. Going forward, we will pursue sustainable growth by resolving these issues through our business activities. This Project especially contributes to “Establishing a Foundation for Comfortable and Enriching Lifestyles”.


Corporate Communications Department, Sumitomo Corporation
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