Osaka, Japan –May 13th, 2014
–Santen Pharmaceutical Co., Ltd., (Osaka, Japan)(Santen)
announced today that it has entered into an agreement with Merck & Co.,
Inc., (Whitehouse Station, NJ, USA) (Merck) for Santen to purchase Merck’s
ophthalmology products (COSOPT, COSOPT PF, TRUSOPT, TRUSOPT PF, TIMOPTIC,
TIMOPTIC XE, SAFLUTAN and TAPTIQOM) in Japan, Europe, and Asia Pacific
(“Agreement”). The annual sales in these territories associated with these
ophthalmic products are approximately USD400 million.
Under the terms of the Agreement, Santen
will make an upfront payment of approximately USD600 million and additional
payments based on defined sales milestones as needed (“Purchase Price”). Santen
will also receive supply from Merck, the ophthalmology products within this
agreement for a two to five year period. The Agreement is subject to certain
closing conditions, including obtaining antitrust clearance in Japan and other
closing conditions related to specific markets or regions. Santen intends to
fund the transaction with a combination of cash on hand and bank loans.
The agreement is expected to close in a few months.
“Santen is proud to inherit and continue
Merck’s formidable legacy in ophthalmology. This transaction
strengthens Santen’s lineup of glaucoma products, significantly expands Santen’s
footprint in Japan, Asia and Europe, and is an important step in achieving
“Vision 2020”, Santen’s long term corporate vision to become “a specialized
pharmaceutical company with a global presence”. We are pleased that by entering
into this agreement, Santen can increase its presence in the global
ophthalmology market, which consequently allow us to contribute even further to
meet the medical needs of the patients suffering from various eye disease ,”
said Akira Kurokawa, President and CEO of Santen Pharmaceutical Co., Ltd.
Santen’s income is expected to increase
in connection with this agreement, and thus EPS is expected to increase from
fiscal year ending in March 2015. We are working on evaluating the financial
impact, more detailed information as to our sales forecast for fiscal 2014 and
the financial impact from this agreement to Santen’s medium term financial
guidance will be presented subsequently.
Founded in 1890,
Santen is a global company headquartered in Osaka, Japan. Santen
researches, develops and markets ophthalmic products for physicians
worldwide. Santen currently delivers valuable ophthalmology
products meeting the unmet medical needs to more than 50 countries and regions
worldwide. Among prescription ophthalmic pharmaceuticals, Santen
holds the top share within the Japanese market and is one of the leading
ophthalmic companies worldwide. Based on its corporate values, Santen is
committed to contribute to patients and their loved ones, and consequently to
the society by focusing its efforts on ophthalmology and related areas. Tokyo
Stock Exchange code: 4536. For more information, visit www.santen.com.
Information provided in this press
release contains so-called “Forward-looking Statements”. The realizations of
these forecasts are subject to risk and uncertainty from various sources.
Therefore, please note that the actual results may differ significantly from the
forecasts. Business performance and financial condition are subject to the
effects of change in regulations made by the governments of Japan and other
nations concerning medical insurance, drug pricing and other systems, and to
fluctuations in market variables such as interest rates and foreign exchange
This press release is a direct
translation of the original document issued on May 13th, 2014 for your
reference. The original document is in English. In case of any discrepancy
between the English and translated versions, the English version will prevail.
Please refer to http://www.santen.com/en/ for the original
Nicolas Merigeau / Emmanuel
Director - Santen Europe