Kyowa Kirin is selling off its China business and transitioning to a research organization in a shake-up that could lead to major cuts to the company’s in-house discovery and CMC work.
The Japanese drugmaker is transferring equities from its Chinese unit to a “newly established special purpose company,” and will subsequently sell all shares in that company to Hong Kong-based WinHealth Pharma Group in a deal worth 15 billion yen ($100 million). Kyowa plans to license five medicines that are currently approved or marketed in China to the special purpose company.
Kyowa’s decision comes in light of “external environment changes” and at a time when the company is exploring “future growth strategies,” the release states.
Elsewhere, the company has secured a license and distribution agreement with Swiss holding company DKSH to divest the commercial rights to its rare disease drug Crysvita in Hong Kong, Macau, Malaysia, Singapore and Thailand. The deal also includes the Singapore rights to mycosis fungoides treatment Poteligeo.
In a separate Thursday release, Kyowa said it will transition to a research organization in order to focus more on its priority therapeutic areas and modalities, a move that will involve reductions in its small molecule drug discovery activities and work in chemistry, manufacturing and controls. It is also rolling out a voluntary retirement program to help reduce its headcount.
The company has recently been moving away from small molecule R&D to focus more on biologics. Last year, Kyowa paid $387 million in cash to buy gene therapy developer Orchard Therapeutics, a bet that paid off in March this year when the FDA approved Lenmeldy for metachromatic leukodystrophy.
In June, the Japanese drugmaker pledged $530 million to construct a biologics manufacturing site in Sanford, NC. The facility is set to be Kyowa’s first manufacturing site in the US.