Notice Concerning Joint Venture Collaboration for Kyowa Kirin International plc’s Established Medicines Portfolio

On November 24, 2022 Kyowa Kirin Co., Ltd., (TSE:4151, President and CEO: Masashi Miyamoto, Kyowa Kirin), a Japan-based global specialty pharmaceutical company, and Grünenthal GmbH (CEO: Gabriel Baertschi), a global, science-based, privately-owned pharmaceutical company, reported that they have signed a Joint Venture Collaboration for Kyowa Kirin International’s established medicines portfolio (Press release, Kyowa Hakko Kirin, NOV 24, 2022, View Source [SID1234624414]). The Joint Venture Collaboration comprises 13 brands across 6 therapeutic areas primarily focused on pain management, including Abstral and PecFent for breakthrough cancer pain, Moventig for opioid-induced constipation, and Adcal-D3 for osteoporosis. The Joint Venture Collaboration is subject to obtaining customary approvals and clearances, including anti-trust and works councils as legally required. Completion of the deal is anticipated for Q2 2023.

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The total revenues of the portfolio in 2021 were approximately €200 million. The products are marketed through affiliates in seven major European countries and through a network of partners in various additional territories worldwide. Grünenthal has agreed to pay approximately €80 million upfront plus royalties over the term of the collaboration. Grünenthal will make an additional payment upon purchase of the remaining share and the intellectual property (IP) of the portfolio.

"As a leader in pain management, and with our proven track record in growing established brands, we believe we can help even more patients benefit from this unique group of medicines", said Gabriel Baertschi, Chief Executive Officer, Grünenthal. "This portfolio of established brands matches very well with Grünenthal’s geographical footprint and therapeutic areas."

Abdul Mullick, President of Kyowa Kirin International said, "Our search for a partner included three key priorities: a team who shares our commitment to patients and to our employees, a partner who is looking to support our growth agenda, and a company with which we can establish a close, collaborative partnership that promises benefits for all our stakeholders while operating at the highest ethical standards. This collaboration will bring a renewed focus, the resources and the commercial infrastructure required to grow the established medicines portfolio to deliver life-changing value to more patients."

Subject to approval, Grünenthal will own a 51 percent majority share in the new company. Kyowa Kirin will own a 49 percent share and will initially retain the IP related to the portfolio.

Grünenthal intends to purchase the remaining 49 percent share and the IP at the beginning of 2026.

About the portfolio

The portfolio includes medicines that deliver life-changing value for hundreds of thousands of patients. The portfolio is available in seven major European markets through affiliates and in various additional territories worldwide through a network of partners. Key products in the portfolio include Abstral and PecFent (Fentanyl) for breakthrough cancer pain, Moventig (Naloxegol) for opioid-induced constipation and Adcal-D3 (calcium and vitamin D3) for osteoporosis.