On December 16, 2016 TG Therapeutics, Inc. (NASDAQ:TGTX) reported the publication of clinical data from a Phase 2 study of TG-1101 (ublituximab), the Company’s novel glycoengineered anti-CD20 monoclonal antibody, in combination with ibrutinib, the oral BTK inhibitor, in patients with Chronic Lymphocytic Leukemia (CLL) (Press release, TG Therapeutics, DEC 16, 2016, View Source [SID1234517088]). The data, which was presented at the 2015 International Conference on Malignant Lymphoma (ICML) in Lugano, Switzerland, demonstrates the combination to be well tolerated with limited grade 3/4 adverse events observed. An 88% overall response rate (ORR) was reported at month 6 for all patients treated, with a 95% ORR observed in patients with high risk CLL (presence of a 17p or 11q deletion or a TP53 mutation). These data are described further in the manuscript titled, "Ublituximab (TG-1101), a novel, glycoengineered anti-CD20 antibody, in combination with ibrutinib is safe and highly active in patients with relapsed and/or refractory chronic lymphocytic leukemia: results of a phase 2 trial," which was published online today in the British Journal of Haematology. The online version of the article can be accessed at View Source Schedule your 30 min Free 1stOncology Demo! "We want to thank Dr. Jeff Sharman and the team at the US Oncology Network for their work on this important Phase 2 study and congratulate them on this peer-reviewed publication. We believe the chemo-free combination of TG-1101 and ibrutinib is an effective and much needed treatment option for patients with high-risk CLL who continue to exhibit a poor prognosis, and the data in this publication underscores our belief. The results from this study support the GENUINE Phase 3 study, and given the dramatic and rapid responses seen in this Phase 2, we are confident in the success of GENUINE. We recently announced the completion of enrollment in the revised GENUINE trial and look forward to announcing top line data in the first half of 2017," stated Michael S. Weiss, the Company’s Executive Chairman and Interim Chief Executive Officer.
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"While ibrutinib is effective in patients with CLL, it is not the only answer. In this study, the addition of ublituximab to ibrutinib not only produced high response rates, but also allowed patients to achieve deeper responses with complete responses and minimal residual disease (MRD) negativity seen, which is rare with ibrutinib alone. We look forward to exploring how the increased depth of response may affect the sequence of treatments given to patients," stated Dr. Jeff Sharman, Medical Director of Hematology Research for the US Oncology Network.
European Medicines Agency’s CHMP Recommends Merck’s KEYTRUDA® (pembrolizumab) for the First-Line Treatment of Patients with Metastatic Non-Small Cell Lung Cancer (NSCLC) Whose Tumors Have High PD-L1 Expression with No EGFR or ALK Positive Tumor…
On December 16, 2016 Merck (NYSE:MRK), known as MSD outside the United States and Canada, reported that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) has adopted a positive opinion recommending approval of KEYTRUDA (pembrolizumab), the company’s anti-PD-1 therapy, for the first-line treatment of metastatic non-small cell lung cancer (NSCLC) in adults whose tumors have high PD-L1 expression (tumor proportion score [TPS] of 50 percent or more) with no EGFR or ALK positive tumor mutations (Press release, Merck & Co, DEC 16, 2016, View Source [SID1234517087]). The recommendation will now be reviewed by the European Commission for marketing authorization in the European Union. A final decision is expected in the first quarter of 2017. KEYTRUDA is currently approved in Europe for the second-line treatment of patients with locally advanced or metastatic NSCLC whose tumors express PD-L1 and who have received at least one prior chemotherapy regimen. Patients with EGFR or ALK positive tumor mutations should also have received targeted therapy before receiving KEYTRUDA. Schedule your 30 min Free 1stOncology Demo! "Lung cancer is one of the leading causes of death in the EU, so today’s news is an important step forward for many patients in Europe. If approved, patients with metastatic non-small cell lung cancer with high PD-L1 expression could receive KEYTRUDA instead of chemotherapy as their initial treatment," said Dr. Roger Dansey, senior vice president and therapeutic area head, oncology late-stage development, Merck Research Laboratories. "We are committed to working collaboratively with governments and other stakeholders to ensure that KEYTRUDA will be made available to patients in Europe as quickly as possible."
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The positive opinion is based on data from KEYNOTE-024, a pivotal study which demonstrated superior overall survival and progression-free survival with KEYTRUDA (pembrolizumab) compared to chemotherapy in patients whose tumors expressed high levels of PD-L1 with no EGFR or ALK positive tumor mutations.
KEYNOTE-024 is a randomized, open-label, phase 3 study evaluating KEYTRUDA monotherapy at a fixed dose of 200 mg compared to standard of care platinum-containing chemotherapy for the treatment of patients with both squamous and non-squamous metastatic NSCLC. The study enrolled patients who had not received prior systemic chemotherapy treatment for their metastatic disease and whose tumors had high PD-L1 expression with no EGFR or ALK aberrations.
About Lung Cancer
Lung cancer, which forms in the tissues of the lungs, usually within cells lining the air passages, is the leading cause of cancer death worldwide. Each year, more people die of lung cancer than die of colon, breast, and prostate cancers combined. The two main types of lung cancer are non-small cell and small cell. NSCLC is the most common type of lung cancer, accounting for about 85 percent of all cases. The five-year survival rate for patients suffering from highly advanced, metastatic (Stage IV) lung cancers is estimated to be two percent.
About KEYTRUDA (pembrolizumab)
KEYTRUDA is a humanized monoclonal antibody that works by increasing the ability of the body’s immune system to help detect and fight tumor cells. KEYTRUDA blocks the interaction between PD-1 and its ligands, PD-L1 and PD-L2, thereby activating T lymphocytes which may affect both tumor cells and healthy cells.
KEYTRUDA is administered as an intravenous infusion over 30 minutes every three weeks for the approved indications. KEYTRUDA for injection is supplied in a 100 mg single use vial.
KEYTRUDA Indications and Dosing in the U.S.
Melanoma
KEYTRUDA (pembrolizumab) is indicated for the treatment of patients with unresectable or metastatic melanoma at a dose of 2 mg/kg every three weeks until disease progression or unacceptable toxicity.
Lung Cancer
KEYTRUDA is indicated for the first-line treatment of patients with metastatic non-small cell lung cancer (NSCLC) whose tumors have high PD-L1 expression [tumor proportion score (TPS) ≥50%] as determined by an FDA-approved test, with no EGFR or ALK genomic tumor aberrations.
KEYTRUDA is also indicated for the treatment of patients with metastatic NSCLC whose tumors express PD-L1 (TPS ≥1%) as determined by an FDA-approved test, with disease progression on or after platinum-containing chemotherapy. Patients with EGFR or ALK genomic tumor aberrations should have disease progression on FDA-approved therapy for these aberrations prior to receiving KEYTRUDA.
In metastatic NSCLC, KEYTRUDA is administered at a fixed dose of 200 mg every three weeks until disease progression, unacceptable toxicity, or up to 24 months in patients without disease progression.
Head and Neck Cancer
KEYTRUDA is indicated for the treatment of patients with recurrent or metastatic head and neck squamous cell carcinoma (HNSCC) with disease progression on or after platinum-containing chemotherapy. This indication is approved under accelerated approval based on tumor response rate and durability of response. Continued approval for this indication may be contingent upon verification and description of clinical benefit in the confirmatory trials. In HNSCC, KEYTRUDA is administered at a fixed dose of 200 mg every three weeks until disease progression, unacceptable toxicity, or up to 24 months in patients without disease progression.
Selected Important Safety Information for KEYTRUDA (pembrolizumab)
KEYTRUDA can cause immune-mediated pneumonitis, including fatal cases. Pneumonitis occurred in 94 (3.4%) of 2799 patients receiving KEYTRUDA, including Grade 1 (0.8%), 2 (1.3%), 3 (0.9%), 4 (0.3%), and 5 (0.1%) pneumonitis, and occurred more frequently in patients with a history of prior thoracic radiation (6.9%) compared to those without (2.9%). Monitor patients for signs and symptoms of pneumonitis. Evaluate suspected pneumonitis with radiographic imaging. Administer corticosteroids for Grade 2 or greater pneumonitis. Withhold KEYTRUDA (pembrolizumab) for Grade 2; permanently discontinue KEYTRUDA for Grade 3 or 4 or recurrent Grade 2 pneumonitis.
KEYTRUDA can cause immune-mediated colitis. Colitis occurred in 48 (1.7%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.4%), 3 (1.1%), and 4 (<0.1%) colitis. Monitor patients for signs and symptoms of colitis. Administer corticosteroids for Grade 2 or greater colitis. Withhold KEYTRUDA for Grade 2 or 3; permanently discontinue KEYTRUDA for Grade 4 colitis.
KEYTRUDA can cause immune-mediated hepatitis. Hepatitis occurred in 19 (0.7%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.1%), 3 (0.4%), and 4 (<0.1%) hepatitis. Monitor patients for changes in liver function. Administer corticosteroids for Grade 2 or greater hepatitis and, based on severity of liver enzyme elevations, withhold or discontinue KEYTRUDA.
KEYTRUDA can cause hypophysitis. Hypophysitis occurred in 17 (0.6%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.2%), 3 (0.3%), and 4 (<0.1%) hypophysitis. Monitor patients for signs and symptoms of hypophysitis (including hypopituitarism and adrenal insufficiency). Administer corticosteroids and hormone replacement as clinically indicated. Withhold KEYTRUDA for Grade 2; withhold or discontinue for Grade 3 or 4 hypophysitis.
KEYTRUDA can cause thyroid disorders, including hyperthyroidism, hypothyroidism, and thyroiditis. Hyperthyroidism occurred in 96 (3.4%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.8%) and 3 (0.1%) hyperthyroidism. Hypothyroidism occurred in 237 (8.5%) of 2799 patients receiving KEYTRUDA, including Grade 2 (6.2%) and 3 (0.1%) hypothyroidism. Thyroiditis occurred in 16 (0.6%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.3%) thyroiditis. Monitor patients for changes in thyroid function (at the start of treatment, periodically during treatment, and as indicated based on clinical evaluation) and for clinical signs and symptoms of thyroid disorders. Administer replacement hormones for hypothyroidism and manage hyperthyroidism with thionamides and beta-blockers as appropriate. Withhold or discontinue KEYTRUDA for Grade 3 or 4 hyperthyroidism.
KEYTRUDA can cause type 1 diabetes mellitus, including diabetic ketoacidosis, which have been reported in 6 (0.2%) of 2799 patients. Monitor patients for hyperglycemia or other signs and symptoms of diabetes. Administer insulin for type 1 diabetes, and withhold KEYTRUDA and administer antihyperglycemics in patients with severe hyperglycemia.
KEYTRUDA can cause immune-mediated nephritis. Nephritis occurred in 9 (0.3%) of 2799 patients receiving KEYTRUDA, including Grade 2 (0.1%), 3 (0.1%), and 4 (<0.1%) nephritis. Monitor patients for changes in renal function. Administer corticosteroids for Grade 2 or greater nephritis. Withhold KEYTRUDA (pembrolizumab) for Grade 2; permanently discontinue KEYTRUDA for Grade 3 or 4 nephritis.
KEYTRUDA can cause other clinically important immune-mediated adverse reactions. For suspected immune-mediated adverse reactions, ensure adequate evaluation to confirm etiology or exclude other causes. Based on the severity of the adverse reaction, withhold KEYTRUDA and administer corticosteroids. Upon improvement to Grade 1 or less, initiate corticosteroid taper and continue to taper over at least 1 month. Based on limited data from clinical studies in patients whose immune-related adverse reactions could not be controlled with corticosteroid use, administration of other systemic immunosuppressants can be considered. Resume KEYTRUDA when the adverse reaction remains at Grade 1 or less following corticosteroid taper. Permanently discontinue KEYTRUDA for any Grade 3 immune-mediated adverse reaction that recurs and for any life-threatening immune-mediated adverse reaction.
The following clinically significant immune-mediated adverse reactions occurred in less than 1% (unless otherwise indicated) of 2799 patients: arthritis (1.5%), exfoliative dermatitis, bullous pemphigoid, rash (1.4%), uveitis, myositis, Guillain-Barré syndrome, myasthenia gravis, vasculitis, pancreatitis, hemolytic anemia, and partial seizures arising in a patient with inflammatory foci in brain parenchyma.
KEYTRUDA can cause severe or life-threatening infusion-related reactions, which have been reported in 6 (0.2%) of 2799 patients. Monitor patients for signs and symptoms of infusion-related reactions, including rigors, chills, wheezing, pruritus, flushing, rash, hypotension, hypoxemia, and fever. For Grade 3 or 4 reactions, stop infusion and permanently discontinue KEYTRUDA.
Based on its mechanism of action, KEYTRUDA can cause fetal harm when administered to a pregnant woman. If used during pregnancy, or if the patient becomes pregnant during treatment, apprise the patient of the potential hazard to a fetus. Advise females of reproductive potential to use highly effective contraception during treatment and for 4 months after the last dose of KEYTRUDA.
KEYTRUDA was discontinued due to adverse reactions in 8% of 682 patients with metastatic NSCLC. The most common adverse event resulting in permanent discontinuation of KEYTRUDA was pneumonitis (1.8%). Adverse reactions leading to interruption of KEYTRUDA occurred in 23% of patients; the most common (≥1%) were diarrhea (1%), fatigue (1.3%), pneumonia (1%), liver enzyme elevation (1.2%), decreased appetite (1.3%), and pneumonitis (1%). The most common adverse reactions (occurring in at least 20% of patients and at a higher incidence than with docetaxel) were decreased appetite (25% vs 23%), dyspnea (23% vs 20%), and nausea (20% vs 18%).
It is not known whether KEYTRUDA (pembrolizumab) is excreted in human milk. Because many drugs are excreted in human milk, instruct women to discontinue nursing during treatment with KEYTRUDA and for 4 months after the final dose.
Safety and effectiveness of KEYTRUDA have not been established in pediatric patients.
Actelion receives positive CHMP opinion for chlormethine gel (Ledaga) for the treatment of MF-CTCL
On December 16, 2016 Actelion Ltd (SIX: ATLN) reported that the Committee for Medicinal Products for Human Use (CHMP), the scientific committee of the European Medicines Agency (EMA), issued a positive opinion for the use of chlormethine gel 160 micrograms/g (Ledaga) for the treatment of mycosis fungoides-type cutaneous T-cell lymphoma (MF-CTCL) in adult patients and recommended that the European Commission approves the product (Press release, Actelion, DEC 16, 2016, View Source [SID1234517086]).
The CHMP opinion is based on the results of the pivotal 201 study, the largest randomized controlled study ever conducted in MF-CTCL involving 260 patients. In this study 77% of patients who were treated for at least 6 months with chlormethine gel achieved a clinical response, in the Composite Assessment of Index Lesion Severity (CAILS) score, while 59% of those treated with the compounded control had a clinical response. A response was defined as an at least 50% improvement in the baseline CAILS score. Complete response was achieved in 19% of patients versus 15% of patients treated with the compounded control. Reductions in mean lesion severity were seen as early as four weeks into the study, with further reductions observed with continuing therapy. The time to first confirmed response favored chlormethine gel (Ledaga) compared to the compounded control.
MF-CTCL is a rare, potentially life-threatening immune system cancer that appears in the skin. MF-CTCL is usually a chronic disease and the course of disease in individual patients is unpredictable. In around 10% of cases, MF-CTCL cells can metastasize to other body tissues, including the liver, spleen and lungs.
In the 201 study, the most frequent adverse reactions reported with chlormethine gel were skin related: dermatitis (54.7%; e.g., skin irritation, erythema, rash, urticaria, skin-burning sensation, pain of the skin), pruritus (20.3%), skin infections (11.7%), skin ulceration and blistering (6.3%), and skin hyperpigmentation (5.5%). No systemic absorption of chlormethine was detected with treatment.
A CHMP positive opinion is one of the final steps before marketing authorization is granted by the European Commission. The European Commission is expected to issue a final decision by the end of February 2017.
Actelion has agreed to a list of recommendations from the CHMP (post-authorization measures) with regards to release of the product in Europe. Subject to the agreed recommendations and achieving market access in different countries, a potential first launch of Ledaga could occur at the end of 2017 at the earliest.
ABOUT CHLORMETHINE GEL (LEDAGA)
Chlormethine is an alkylating drug indicated for the treatment of mycosis fungoides-type cutaneous T-Cell lymphoma (MF-CTCL) formulated as a topical, once-daily, colorless gel (Ledaga).
Chlormethine gel, under the brand name Valchlor (mechlorethamine) is commercially available in the US (since 2013) and in Israel through special import authorization procedure (since 2016).
In France, patients benefit from the drug under a temporary authorization for use (“ATU”) program initiated during the second half of 2014.
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Notes to Editor:
ABOUT MF-CTCL
Mycosis fungoides-type cutaneous T-Cell lymphoma (MF-CTCL) is a rare, but serious and life-threatening, immune system cancer that appears in the skin. MF-CTCL is the most common form of cutaneous T-cell lymphoma.
MF-CTLC typically appears in patients over 50 years of age (median age is 54), and is more common in men. It presents first as dry skin and a red rash, with or without itching. As a result, MF-CTLC is often mistaken for eczema or psoriasis, delaying diagnosis.
MF-CTLC goes on to form scaly plaques on the skin, which can cover small or large areas of the skin. Large bumps or tumor nodules may also develop, and lymph nodes may be involved.
While MF-CTCL is usually a chronic disease, the course of disease in individual patients is unpredictable with some patient progressing into advanced stages. In around 10% of cases, MF-CTCL cells can metastasize into other body tissues, including the liver, spleen and lungs.
Current research suggests that patients who are diagnosed in early stages of MF-CTCL have a normal life expectancy, however the average time to diagnosis ranges from two to seven years. An important therapeutic objective in treating MF-CTLC is prevention of disease progression. Failure to maintain MF-CTLC in its early stages results in a drastically reduced median survival.
ABOUT STUDY 201
Study 201 was a multicenter, randomized, observer-blinded, active-controlled, 12-month study of Stage I and IIA MF-type CTCL patients, conducted in 13 centers in the US to evaluate the efficacy and safety of chlormethine gel compared with chlormethine HCl 0.02% compounded in Aquaphor ointment. In total, 260 patients were randomized 1:1 to topical treatment with chlormethine gel or chlormethine HCl 0.02% compounded in Aquaphor ointment once daily for up to 12 months.
In the study, 77% of patients treated with chlormethine gel had a clinical response at 12 months, in the Composite Assessment of Index Lesion Severity (CAILS*) score, while 59% of those treated with the compounded control achieved a confirmed response. (*A response was defined as an at least 50% improvement in the baseline CAILS score).
Complete response was achieved in 19% of patients versus 15% of patients treated with the compounded control. Reductions in mean lesion severity (CAILS) were seen as early as four weeks, with further reductions observed with continuing therapy. The time to first confirmed response favored chlormethine gel (Ledaga) compared to the compounded control.
The most frequent adverse reactions reported with chlormethine gel were skin related: dermatitis (54.7%; e.g., skin irritation, erythema, rash, urticaria, skin-burning sensation, pain of the skin), pruritus (20.3%), skin infections (11.7%), skin ulceration and blistering (6.3%), and skin hyperpigmentation (5.5%). No systemic absorption of chlormethine was detected with treatment.
Progenra Discovers Novel Immune Oncology Drug
On Dec 15, 2016 Progenra, Inc. announced a new immune-oncology drug whose mechanism differs from available cancer immunotherapies Opdivo and Keytruda (Press release, Progenra, DEC 15, 2016, View Source [SID1234517432]). The findings, published by Progenra with Dr. Wayne Hancock, University of Pennsylvania School of Medicine, support a new immune-oncology antitumor strategy by inhibiting USP7, an enzyme that prevents immune activity against cancer in addition to supporting the growth of cancer cells . According to a commentary on this publication, inhibiting USP7 works on T cells to diminish immunosuppression, permitting the patient’s own immune system to eliminate cancer ("the data by Wang and colleagues proposes a potential immunotherapy against tumors by targeting USP7, which … breaks the immune tolerance in the tumor microenvironment"… "these preclinical findings suggest that USP7 targeting … as well as directly induce tumor cell apoptosis, could have practical significance in clinical applications").
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"We are pleased that Progenra’s unique UbiPro Drug Discovery Platform is gaining traction outside the US and that a major pharmaceutical company such as Ono has agreed to collaborate with Progenra on the ubiquitin and ubiquitin-like protein pathways"
"We are pleased that Progenra’s USP7 inhibitors, tested in several laboratories worldwide, can eradicate cancers by both tumoricidal and immunological mechanisms," said Tauseef Butt, President of Progenra. "We are excited to move USP7 inhibitors into clinical trial as single agents or combined with marketed immunological agents such as Opdivo and Keytruda."
Dr. Hancock added," Immunotherapy must do more than affect a single target, since those approaches help only about 20% of patients. Pharmacologic inhibition of USP7 allows direct targeting through the immune system, in a graded manner that has antitumor efficacy used alone or combined with one or more biologic agents.".
Progenra (www.progenra.com) aims to develop high value medicines exploiting protein regulatory pathways. Its early product portfolio addresses unmet needs in cancer, inflammation, and neurodegeneration. Utilizing its drug discovery platform, Progenra identifies novel modulators of its protein regulatory targets for drug development; the company’s discovery platform is complemented by internal target validation, cell proof of concept, and medicinal chemistry.
Dr. Wayne Hancock is Professor of Pathology/Laboratory Medicine at The University of Pennsylvania School of Medicine and Chief, Division of Transplant Immunology at the Children’s Hospital of Philadelphia. His multidisciplinary team focuses on improving outcomes of organ transplantation and cancer immunotherapy by modulating immune cell production and function.
FUJIFILM TO ACQUIRE WAKO PURE CHEMICAL INDUSTRIES FROM TAKEDA PHARMACEUTICAL BY TENDER OFFER
On December 15, 2016 FUJIFILM Corporation (President & COO: Kenji Sukeno) ("Fujifilm") reported that it approved the acquisition of a leading reagent manufacturer Wako Pure Chemical Industries, Ltd. (President: Shinzo Kobatake) ("Wako") at today’s Board of Directors Meeting(Press release, Fujifilm, DEC 15, 2016, View Source [SID1234517099]).
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Fujifilm signed an agreement with Takeda Pharmaceutical Company Limited (President & CEO: Christophe Weber) ("Takeda") whereby the Takeda group*1 agreed to tender all of the common shares of Wako held by the Takeda group in the tender offer (the "Tender Offer") on the first day of the Tender Offer period. The Tender Offer is scheduled to commence on February 27, 2017, subject to certain closing conditions, including the completion of anti-trust filing process. The expected total amount for the payment of the Tender Offer is JPY154.7bn.
*Takeda and Nihon Pharmaceutical Co., Ltd. together hold 71.2% of Wako shares (as of December 15, 2016).
Through the acquisition of Wako, Fujifilm will continue to expand its business by utilizing, among others, advanced technologies and competitive products, which Fujifilm and Wako possess. Fujifilm will be able to generate significant synergies in our healthcare and highly functional materials businesses, our key business areas, by applying chemical synthesis technology, nano-technology and production technology developed by Fujifilm through its photographic film business. Especially in healthcare, the substantial synergies can be achieved in the area of regenerative medicine with high potential for market growth, in-vitro diagnosis and pharmaceutical CDMO*2. The acquisition of Wako will be a key milestone for Fujifilm’s future business growth.
**Abbreviation for Contract Development and Manufacturing Organization
[Synergies from the Deal]
Regenerative Medicine Business
Fujifilm group has Cellular Dynamics International, Inc. ("CDI"), a US-based leading company in the area of development and manufacturing of iPS cells, and Japan Tissue Engineering Co., Ltd. ("J-TEC"), the first company that has launched the regenerative medicine products in Japan. Fujifilm possesses technologies and know-how essential for regenerative medicine, including the main patents regarding the production of iPS cells, the know-how for development and manufacturing of cells, the scaffold materials (recombinant peptide) necessary for cell culture, the manufacturing technology in stable condition and the micro-environmental control technology. By adding the cell culture medium developed by Wako through this acquisition, Fujifilm group will have all the main elements necessary for regenerative medicine. Fujifilm will utilize the technology to manufacture a small quantity of diversified products developed by Wako as a reagent manufacturer and will develop the high-functioning customized cell culture medium suitable for cultivation of various cells. Fujifilm will further accelerate the development of regenerative medicine business together with Wako, CDI and J-TEC.
In-Vitro Diagnostics Field in Medical System Business
Fujifilm has developed in-vitro diagnostic systems such as clinical chemistry analysis system measuring chemical constituents in blood with accuracy and high-precision and immunodiagnostic system detecting influenza virus with high sensitivity. The sales of the systems have increased by more than 10% per year. Fujifilm will expand the product lineup to satisfy the needs of customers from small clinics to large hospitals by adding the product lineup of Wako, such as immunology analyzer and biochemical analysis reagent. In addition, by utilizing Wako’s sales network in Japan that covers most of facilities conducting in-hospital examinations and Fujifilm’s worldwide business network developed through the sales of medical equipment such as image diagnostic devices and medical IT systems, Fujifilm and Wako will further broaden their market for each product.
Contract Development and Manufacturing Organization (CDMO) in Pharmaceutical Business
FUJIFILM Diosynth Biotechnologies is engaged in CDMO of bio-pharmaceuticals and FUJIFILM Finechemicals Co., Ltd. is engaged in CDMO of small molecule pharmaceuticals. Through this acquisition, Fujifilm will expand the CDMO business of pharmaceuticals by utilizing Wako’s chemical synthesis technology and cell culture medium manufacturing technology as well as Fujifilm’s chemical synthesis technology of small molecule pharmaceuticals and manufacturing technology of bio-pharmaceuticals.
Electronic Materials Business
Fujifilm has the product lineup of semiconductor materials including photoresist, materials for image sensor, and CMP slurry. Fujifilm has achieved the sales growth of more than 10% per year by providing competitive products in the leading-edge of semiconductor material field. Through this acquisition, Fujifilm will add Wako’s products used in the manufacturing process of semiconductor including detergents, and seeks further growth in electronic materials business.
Industrial Products Business
Fujifilm will utilize its library of two hundred thousand varieties of chemical compounds developed through photographic film business in the laboratory chemicals business. In addition, by capitalizing on its advanced chemical synthesis technology, Fujifilm will develop new high-functional reagents and the next generation products for highly competitive polymerization initiator to expand the chemical business through its global business network.
Since the establishment as an independent company separated from Takeda’s chemicals department in 1922, Wako has developed and manufactured high quality reagents in response to research needs in cutting edge fields. Currently, Wako keeps growing with high profitability by taking advantage of a strong domestic business platform in all of their main business areas of laboratory chemicals, clinical diagnostic reagents and speciality chemicals. Wako’s laboratory chemicals business has expanded with its product development and manufacturing system corresponding to small quantity of diversified products needs and its sales network that covers all of Japan. Wako also provides cell culture medium in the area of regenerative medicines where high market growth is expected. In the clinical diagnostics reagents business, Wako expands the business through the development and sales of competitive equipment and testing agent including chemiluminescent immune system which has the world’s fastest measurement capability. Lastly, Wako develops the speciality chemicals business globally utilizing chemical synthesis technology nurtured in the laboratory chemical manufacturing to develop competitive semiconductor process materials and polymerization initiators for polymer manufacturing.
Fujifilm has formed a capital alliance with Wako since 1960 and currently is the second largest shareholder owning 9.7% of Wako’s common shares. For many years, Wako has been the supplier of color producing reagents for manufacturing of photosensitive materials. Recently, Wako performs not only as a supplier for photosensitive materials, but also as a supplier for various products such as highly functional materials including semiconductor materials, and Fujifilm and Wako are strengthening their business relationship. Fujifilm has expanded its businesses to the new areas of cosmetics, supplements, pharmaceutical and regenerative medicine with advanced chemical synthesis technology, nanotechnology, diagnostic imaging technology, engineering technology for highly functional materials including collagen and production technology that allows high level of quality management that have been cultivated through research and development of photographic film business.
Out of the six key business areas in the Fujifilm group (healthcare, highly functional materials, documents business, graphic systems, optical devices and digital imaging), Fujifilm has been concentrating its management resources on healthcare, highly functional materials and documents businesses, where high growth is expected. Through synergies to be created with Wako, Fujifilm will expand the growth in healthcare and highly functional materials businesses by providing and offering competitive new products.
1. Overview of Tender Offer
(1) Tender Offeror
FUJIFILM Corporation
(2) Target Company
Wako Pure Chemical Industries, Ltd.
(3) Class of Shares to Be Acquired
Common Stock
(4) Tender Offer Price
JPY 8,535 per share
(5) Expected Amount of Funds
Necessary for the Tender Offer
Approximately JPY 154.7billion
(6) Tender Offer Period
from February 27, 2017 to April 3, 2017 (expected)
2. Overview of Wako
(1) Company Name
Wako Pure Chemical Industries, Ltd.
(2) Incorporation
in 1922
(3) Headquarters
Osaka, Japan
(4) Representative
President Shinzo Kobatake
(5) Capital
JPY 2,340 million
(6) Revenue
JPY 79.4 billion (FY2016/3, consolidated)
(7) Employee Number
1,642 employees (as of March 31, 2016, consolidated)
(8) Business Overview
Manufacturing and sales of laboratory chemicals, clinical diagnostic reagents and speciality chemicals
3. Impact on FUJIFILM Holdings Consolidated Financial Results
In the event of successful completion of the Tender Offer, Wako will be a consolidated subsidiary of Fujifilm Holdings on April 21, 2017. We expect no impact on Fujifilm Holdings’ FY2017/3 consolidated financial results. We will announce the impact for FY2018/3 consolidated financial results once details are confirmed.