Jan. 17, 2024
Sumitomo Corporation

Sale of Equity Stake in Upsher-Smith Laboratories, LLC

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Masayuki Hyodo) hereby announces that it has agreed on January 16 to sell its entire 20% stake in Upsher-Smith Laboratories, LLC (hereinafter, "USL"), an American generic pharmaceutical company, owned through Sumitomo Corporation of Americas to Bora Pharmaceutical Holdings, Inc. (hereinafter, "Bora"), a contract manufacturer of pharmaceuticals, for US$42 million. The sale is scheduled to be completed in the fourth quarter of Fiscal Year 2023, subject to the completion of necessary approval procedures required by law.

Sumitomo Corporation has been engaged in the manufacturing and sales business of generic pharmaceuticals in the U.S. since its investment in USL in 2018. Under its Medium-Term Management Plan “SHIFT 2023”, Sumitomo Corporation has set a goal of shifting its business portfolio and has been executing strategic asset replacement. As a part of this effort, we will sell our entire stake.
We expect to recognize a gain or loss equivalent to our equity stake in our consolidated financial results for the fourth quarter of the fiscal year 2024. The impact of this sale on our consolidated financial results for the fiscal year ending March 31, 2024 will be negligible.

 ■Profile of Upsher-Smith Laboratories, LLC

Shareholder
 Sawai America LLC 100%
Established
1919
Head office address 
 6701 Evenstad Drive, Maple Grove, MN 55369, U.S.A
Representative
 Rich Fisher, President & COO
Business
 Manufacture and sale of generic medications

 

Profile of Sawai America LLC

Ownership ratio
 Sumitomo Corporation of Americas 20%, SAWAI GROUP HOLDINGS Co., Ltd. 80%
Established
 2017
Head office address
 6701 Evenstad Drive, Maple Grove, MN 55369, U.S.A
Representative
 Taku Nakaoka, President
Business
 Management of the subsidiary through the ownership of the subsidiary equity interests

 

Profile of Bora Pharmaceuticals Co., Ltd. (*)

Established
 2007
Head office address
 6F., No. 2, Aly. 36, Ln. 26, Ruiguang Rd., Neihu District, Taipei City, 114 Taiwan
Representative
 Group CEO & Chairman / Bobby Sheng
Business
 Manufacturing and sales of pharmaceuticals and healthcare products
(*) Bora is a 100% subsidiary newly established by Bora Pharmaceutical Co., Ltd. in Delaware, U.S.A.

Inquiries
Corporate Communications Department, Sumitomo Corporation
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