Japan’s Ube Chemical has decided to merge by absorption API Corporation (APIC), the CDMO operation it acquired from Mitsubishi Chemical in December 2022. This will take effect on 1 December 2024 and is expected to have only a minimal impact on Ube’s consolidated earnings.

The company said that it made this decision in order to “further promote the sharing of the proprietary high-level manufacturing and quality control technologies of both companies, accelerate the development of new technologies, expand supply chain networks and leverage the existing bases of both companies”.

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.