Pharmaceuticals Business to be Expanded through Investment of Production Facilities at Iwate Plant and U.K. Plant

Aug 28, 2020
SEKISUI CHEMICAL CO., LTD.
SEKISUI MEDICAL CO., LTD.

SEKISUI CHEMICAL CO., LTD. (President and Representative Director: Keita Kato; hereinafter, “SEKISUI CHEMICAL”) will invest a total of approximately 6.0 billion yen to enhance production facilities at two major plants involved in the pharmaceuticals business located in Japan and overseas. SEKISUI CHEMICAL is focusing its efforts on expanding the life sciences field centered on the diagnostics business and the pharmaceuticals business (including fine chemicals, drug development solutions, and enzymes) with SEKISUI MEDICAL CO., LTD. (President and CEO: Hajime Kubo; hereinafter, “SEKISUI MEDICAL”), a wholly-owned subsidiary of SEKISUI CHEMICAL, playing a central role. Through this expansion, SEKISUI CHEMICAL will develop structures for contract manufacturing the raw materials and active pharmaceutical ingredients of various types of pharmaceuticals and reinforce its pharmaceutical sciences business.

1. Overview of the Capital Investment

(1)SEKISUI MEDICAL Iwate Plant

Location Hachimantai City, Iwate Prefecture
Investment amount Approximately 4.0 billion yen
Details of investment Construction of new pharmaceutical intermediates manufacturing building
Start of construction August 2020
Start of operations March 2023

(2)SEKISUI DIAGNOSTICS (UK) LTD. (U.K. Plant)

Location Kent County, England
Investment amount Approximately 2.0 billion yen
Details of investment Construction of new microbial protein culturing and purification facility
Start of construction July 2020
Start of operations September 2022

2. Background

The global pharmaceutical product market exceeds 100 trillion yen and is growing by about 5% annually, primarily in China and the United States. At the same time, needs for pharmaceutical products are diversifying, and the branching out of therapeutic methods is accelerating to encompass not just conventional small molecule drugs, but also peptide (medium-size molecule) drugs, therapeutic proteins (biopharma), cell therapies, and regenerative medicine with pharmaceuticals.
Until now, the SEKISUI CHEMICAL Group has manufactured and sold active pharmaceutical ingredients for small molecule drugs through SEKISUI MEDICAL and enzymes for diagnostic reagents through SEKISUI DIAGNOSTICS (UK) LTD., and the Group believes that to respond to the recent diversification of and rising costs in the pharmaceutical market, it will be important to contribute to the pharmaceutical industry by developing supply structures for active pharmaceutical ingredients and other products in a wide range of fields.

3. Details and Objectives of the Expansion

SEKISUI MEDICAL’s Pharmaceuticals & Fine Chemicals Division will respond to the diversification of the pharmaceutical market by creating development, manufacturing, and supply structures for raw materials, active pharmaceutical ingredients, and pharmaceutical intermediates used in a wide range of pharmaceutical products.
The capital investment will enable a 25% increase in the production of active pharmaceutical ingredients and pharmaceutical intermediates for small molecule pharmaceuticals at the Iwate Plant compared to current levels. The Iwate Plant will simultaneously reinforce its production systems for raw materials used in peptide (medium-size molecule) pharmaceutical products.
With the establishment of a new microbial protein fermentation and purification facility at the U.K. Plant, a structure will be created for CDMO (contract development and manufacturing organization; contracted R&D and manufacture of pharmaceutical products) of raw materials used in therapeutic proteins (biopharma), and the two plants together will be able to perform contract manufacturing over the entire range of pharmaceutical manufacturing fields from small molecules to biopharma.
Moreover, production facilities compliant with GMP (good manufacturing practice; rules relating to the manufacturing environment of pharmaceutical products including raw materials), pharmaceutical manufacturing and quality control standards, will make it possible to develop and manufacture raw materials and active pharmaceutical ingredients for pharmaceuticals.
This business is positioned as a core strategic field within the medical business, and the SEKISUI CHEMICAL Group will work to reinforce its production and supply structures for pharmaceutical product markets, which are expected to continue growing rapidly in the future, and strengthen R&D, quality control, and service systems to meet the needs of customers with a focus on pharmaceutical companies.

4. Pharmaceutical Product Supply Structures After the Investment

Pharmaceuticals Business to be Expanded through Investment of Production Facilities at Iwate Plant and U.K. Plant

Reference 1: Overview of SEKISUI MEDICAL CO., LTD

(1)Location Urban Net Nihonbashi 2-chome Building, 2-1-3 Nihonbashi, Chuo-ku, Tokyo
(2)Representative President and CEO Hajime Kubo
(3)Business Diagnostics, pharmaceuticals and fine chemicals, drug development solutions
(4)Capital ¥1.275 billion
(5)Established April 1, 2008
(Daiichi Pure Chemical Co., Ltd., the predecessor company, was established on July 10, 1947)
(6)Shareholder SEKISUI CHEMICAL (100%)
(7)Annual sales Approx. 47 billion yen (in the fiscal year ended March 2020, unconsolidated)

Reference 2: Overview of SEKISUI DIAGNOSTICS (UK) LTD.

(1)Location Liphook Way, Allington, Maidstone, Kent, ME16 OLQ, United Kingdom
(2)Representative President Robert Schruender
(3)Business Pharmaceuticals (enzymes) and diagnostics
(4)Capital £36 million
(5)Established February 1, 2011
(6)Shareholder SEKISUI CHEMICAL (100%)
(7)Annual sales Approx. 5.4 billion yen (in the fiscal year ended March 2020, unconsolidated)                                

About SEKISUI CHEMICAL Group

Headquartered in Japan, SEKISUI CHEMICAL CO., LTD. (TSE: 4204) and its subsidiaries make up the SEKISUI CHEMICAL Group. 27,000 employees in over 200 companies throughout 21 countries and regions aim to contribute to improving the lives of the people of the world and the earth’s environment. Thanks to a history of innovation, dedication and a pioneering spirit, SEKISUI CHEMICAL now holds leading positions in its three diverse business divisions as well as top global market share in interlayer film, foam products, conductive particles and more.
Since its foundation in 1947, the SEKISUI CHEMICAL Group has dedicated itself to social and environmental contribution and is now an internationally recognized leader in sustainability and environmental initiatives, having recently been selected as one of the Global 100 most sustainable companies. SEKISUI CHEMICAL Group will continue to maintain a strong corporate presence for 100 years and beyond.

Press Contact

SEKISUI CHEMICAL CO., LTD.
Public Relations Department
Fax: +81-(0)3-6748-6547

Disclaimer

This press release may contain forward-looking statements. Such forward-looking statements are based on current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements due to changes in global economic, business, competitive market and regulatory factors.