(Yicai Global) Dec. 30 – Kobayashi Pharmaceutical Co. [TKY:4967], a well-known Japanese drug maker, said it will invest JPY30 billion (USD257 million) in mergers and acquisitions over the next three years to acquire local companies in other markets, primarily China, to expand overseas sales of its pharmaceutical products.
Kobayashi will begin taking over some Chinese firms as early as next year, said Japanese newspaper Nihon Keizai Shimbun yesterday. Upon receiving its license, Kobayashi will develop and distribute products in accordance with China's laws regulating the health sector. The report did not specify the names of the companies targeted. Kobayashi will also sell its products within China to meet the demands of people who have used or are familiar with them.
Kobayashi already has a wholly-owned subsidiary in China, Shanghai Kobayashi Daily Chemicals Co., which mainly distributes household chemicals. Kobayashi's products are popular among Chinese visitors to Japan. Sales from tourists to Japan reached JPY4.3 billion last year, almost doubling that of the previous year, according to public data.