Investing in CIMIC CMO Which Operates the CDMO Business of the CMIC Group and Supporting Growth as a Joint Managing Partner
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- Tohoku
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The CMIC Group is deploying pharmaceutical value creator (PVC) model to comprehensively support various pharmaceutical value chains, from pharmaceutical development, to manufacturing and sales. CMIC CMO Co., Ltd. (headquarters: Minato-ku, Tokyo) operates a contract pharmaceutical development and manufacturing organization(CDMO), which plays a role in this model. In July 2018, DBJ invested in this company and became a joint managing partner to back its growth.
In the past decade, the outsourcing of formulation development and manufacturing for pharmaceuticals has been steadily increasing. Today, many pharmaceutical companies are taking advantage of this. Meanwhile, the industry is demanding that pharmas implement large-scale upfront strategic investments and carry out aggressive M&A to achieve business growth. Even for the CMIC Group, securing the necessary management resources has become an issue.
In this project, DBJ provided the capital CMIC CMO required for upfront capital investments. In addition, DBJ dispatched outside directors to CMIC CMO's boardroom as well as employees to provide support for management reforms. DBJ is supporting the company's steady growth through the establishment of a medium-term plan and promotion of M&A strategies, which are key to growth, and building a management system that incorporates key performance indicators. In June 2019, the company took over the Nishine Plant from Astellas Pharma Tech, a production subsidiary of Astellas Pharma. As this and other factors illustrate, the company is seeing solid results.
The CDMO industry is expected to continue its growth. In addition, the development of this industry will contribute to the competitiveness of Japan's pharmaceutical industry. CMIC CMO Co., Ltd., leads growth in the CDMO industry. DBJ plans to continue to provide support so that CMIC CMO Co. can contribute to the improvement of the competitive strength of Japan's overall pharmaceutical industry.