Osotspa has agreed with Japan-based Taisho Pharmaceutical Holdings to form a joint venture to penetrate the local market for over-the-counter drugs and health products.
The aim of Osotspa Taisho is to strengthen both partners through the integration of their drug businesses in Thailand ahead of the Asean Economic Community, which will be fully effective in 2015.
Reuters earlier reported that Taisho Pharmaceutical Holdings’ subsidiary, Taisho Pharmaceutical, and Osotspa would transfer their OTC drug businesses in the local market to Osotspa Taisho.
Taisho Pharmaceutical will also invest in Osotspa Taisho and increase its stake from 49 per cent to 60 per cent. Osotspa’s share will drop from 51 per cent to 40 per cent. Osotspa Taisho will change its name to Osotspa Taisho Pharmaceutical. The process will be conducted next month.
According to its statement released yesterday, Osotspa is quite confident that the JV will be successful, as it will combine the values and strengths of the two parties for sustainable growth in the future.
Under the agreement, Osotspa still holds the rights to its own brands developed before the launch of the JV, as does Taisho Pharmaceutical. However, any product created by Osotspa Taisho in Thailand will come under the JV.
Taisho Pharmaceutical was incorporated in 1912. It was established with the express purpose of developing proprietary pharmaceuticals and providing novel healthcare-related products and medical information. It aspires to become a pharma that remains accessible and familiar to consumers.
Today, it continues to maintain its position as Japan’s overwhelming leader in the OTC-drug industry, with several top-ranking brands to bolster its core OTC business.