Eisai Co., Ltd. and Ajinomoto Co., Inc. have formed an integration agreement concerning the splitting off of a portion of Eisai’s gastrointestinal disease treatment business and its subsequent succession by Ajinomoto Co.’s wholly owned subsidiary, Ajinomoto Pharmaceuticals Co. Ltd via an absorption-type split. The trade name for the new integrated company will be EA Pharma Co., Ltd. Eisai will hold 60% of the shares in EA Pharma Co., Ltd. with Ajinomoto Co. will hold the remaining 40%, and the company will be one of Eisai’s consolidated subsidiaries and an affiliated company accounted for by the equity-method for Ajinomoto Co.

The new company will be established, effective April 1, 2016 and have 1,250 employees. The companies said the EA Pharma Co., Ltd., will be one of Japan’s largest gastrointestinal specialty pharmaceutical companies. The portion of the business to be split off according to the absorption-type company split agreement are Eisai’s domestic marketing and R&D functions for the field of gastrointestinal disease, however there will be no transfer of fixed assets relating to these functions to the succeeding company as well as specified gastrointestinal disease products and pipeline products.

Source: Eiasai