API Corporation changes hands

Ube has agreed to acquire all of the shares of the CDMO and API manufacturer API Corporation (APIC) from its Japanese compatriot Mitsubishi Chemical. Terms were not disclosed.

APIC offers such CDMO services for small molecule drugs as synthetic route design, pilot manufacturing, investigational medical manufacturing and commercial production based on capabilities in both organic synthesis and biotechnology it has cultivated over many years. It also makes APIs and intermediates.

Ube said that it will further expand this business to include nucleic acid drugs, the life sciences, healthcare, medical sciences and other areas. The company already has a pharmaceuticals business is comprised of a licensing business based on drug discovery research and the CDMO business.

“The acquisition of shares will enable Ube and APIC to mutually utilise their proprietary high-level manufacturing and quality control technologies, jointly develop new technologies, expand their supply chain networks and leverage the bases of both companies,” the company stated. “Through these efforts, UBE will strive to establish a high-quality, stable supply system to meet the demands of the CDMO market.”

This is part of a new strategy that was announced in April, when Ube transformed its management structure into that of a chemicals business holding stocks of companies engaged in machinery and cement-related businesses. The medium-term management plan, ‘Ube Vision 2030 Transformation—1st Stage’ announced in May, calls for focused investment of management resources in speciality chemicals, with pharma positioned as an important growth driver.