DSP to set up anti-cancer drugs sales company in US

Oct 9 2013

Dainippon Sumitomo Pharma Co., Ltd. (DSP) announced on October 9 that it has decided to establish an anti-cancer drugs sales company in the United States as a wholly-owned subsidiary of DSP's 100% owned U.S. holding company.

1. Objectives of establishing the sales company
DSP is conducting a Phase III global clinical study of the anti-cancer drug BBI608 that was created by its U.S. subsidiary Boston Biomedical, Inc. ("BBI"). In this connection, DSP has considered various options for an eventual sales scheme and an organizational structure in preparation for successful conclusion of the BBI608 development.

The sales and marketing activity of anti-cancer drugs requires extraordinary professional expertise. We have reached the decision to set up a sales scheme and organizational structure exclusively dedicated to anti-cancer drugs by establishing a new company independent from our existing U.S. subsidiaries. The new sales subsidiary will be established so that necessary preparations for BBI608 launch can be made in line with the progress of its development. Upon establishment, the new company will start making preparations in anticipation of eventual market launch of BBI608.

The development of BBI608 is underway, with a target launch date in fiscal 2015 as has been mentioned in our previous announcements. The latest announcement of the new company formation in no way implies any change in the situation of BBI608 development.

2. Outline of the new company

3. Future outlook
The establishment of the new company is expected to have minor impact on the consolidated business performance of DSP in the current year to end in March 2014. In the third Mid-term Business Plan we announced on February 18, 2013, BBI608 is targeted for launch in the U.S. in fiscal 2015 and the sales target for fiscal 2017 in the U.S. is US$650 million.