JT Group to Merge
Pharmaceutical Production Facilities
Tokyo, April 22, 2005 --- Japan Tobacco Inc. (JT) (TSE:
2914) and Torii Pharmaceutical Co., Ltd. (TSE: 4551), JT’s
pharmaceutical business subsidiary, announced today that the companies
would merge JT’s 32-person pharmaceutical production factory
in Hofu, in Yamaguchi prefecture, and the 135-person Torii factory
in Sakura, Chiba prefecture. The Hofu factory would then be closed
at the end of March 2006.
Since October 1999, JT’s pharmaceutical division has focused
on the research and development of innovative drugs, while Torii
has responsibility for the drug’s marketing activities, creating
an efficient R&D and marketing process.
Upon the full implementation of the amended Pharmaceutical Affairs
Law(*) in April 2005, the JT group decided to merge the two entities.
Once the Hofu factory closes, most JT’s prescription drugs
will be produced in Torii’s Sakura factory, under one roof,
further boosting efficiency.
* The previous Pharmaceutical Affairs Law in Japan
stipulated that pharmaceutical companies which apply for the regulatory
approval of new drugs should possess their own production facilities.
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Japan Tobacco Inc. is the world's third largest international manufacturer
of tobacco products. Since its privatization in 1985, JT has actively
diversified its operations into pharmaceuticals and foods. JT entered
into the pharmaceutical business in 1987 and established the Central
Pharmaceutical Research Institute in 1993. JT is currently engaged
in the research and development of new drugs in various areas such
as glucose and lipid metabolism, anti-virus, immune disorders and
inflammation, and bone metabolism. The company’s net sales were
JPY 4.625 trillion in the fiscal year that ended March 31, 2004.
Torii Pharmaceutical Co., Ltd., established in 1921, has manufactured
and distributed ethical pharmaceutical products. In 1998, Torii became
a member of the JT Group. To maximally leverage the synergy of the
Group, R&D functions were transferred to JT and sales and marketing
functions were transferred to Torii. Torii and JT continue to operate
in close collaboration. Torii’s net sales were JPY 42 billion
in the fiscal year ended March 31, 2004.
