Key points:
- Shionogi & Co. is acquiring Japan Tobacco’s pharmaceutical operations, including a 54.84% stake in Torii Pharmaceutical, for over ¥150 billion ($1.05
- The acquisition aligns with Shionogi’s STS2030 strategy to enhance its pipeline in infectious diseases and expand its global footprint.
- Japan Tobacco is divesting its pharmaceutical business due to changing industry dynamics, focusing instead on its core tobacco operations.
In a strategic move to bolster its pharmaceutical portfolio, Shionogi & Co. announced its agreement to acquire Japan Tobacco’s (JT) pharmaceutical business, including a 54.84% stake in Torii Pharmaceutical and U.S.-based Akros Pharma, for a total of over ¥150 billion ($1.05 billion).
The deal comprises ¥70.3 billion for JT’s stake in Torii and an ¥80.7 billion tender offer to minority shareholders at ¥6,350 per share, representing a 21% premium over Torii’s previous closing price. Torii’s board endorsed the offer, encouraging shareholders to participate.
This acquisition is a significant step in Shionogi’s STS2030 strategy, aiming to accelerate drug development in infectious diseases and expand its global presence. By integrating JT’s strengths in small-molecule drug discovery and Torii’s expertise in dermatology and renal therapies, Shionogi plans to enhance its research capabilities and streamline operations, according to reports.
Japan Tobacco’s decision to divest its pharmaceutical segment stems from evolving industry challenges, including increased R&D costs and market competition. CEO Masamichi Terabatake stated that transferring the business to Shionogi ensures the continuation of JT’s pharmaceutical legacy and allows the company to focus on its core tobacco operations.
The transaction is expected to be finalized by December 2025, pending regulatory approvals. Post-acquisition, Shionogi anticipates leveraging the combined resources to drive innovation and deliver new treatments to patients worldwide.
