TOKYO, Japan, Oct. 14 /CNW Telbec/ - Otsuka Pharmaceutical Co., Ltd., a wholly owned subsidiary of Otsuka Holdings Co., Ltd. based in Japan, today announces that on October 14, 2009, it agreed to acquire 3,686,182 newly issued common shares of MethylGene Inc. at a purchase price of approximately C$0.43 per share. Following the closing of this private placement, expected on October 19, 2009, Otsuka Pharmaceutical will own 9.13% of the issued and outstanding common shares of MethylGene. This acquisition of common shares, together with the 370,664 common shares of MethylGene already held by Taiho Pharmaceutical Co., Ltd., another wholly owned subsidiary of Otsuka Holdings, will represent 10.05% of the outstanding common shares of MethylGene held by the group.
On March 25, 2008, Otsuka Pharmaceutical and MethylGene entered into a worldwide research collaboration and license agreement for the development of novel, small molecule, kinase inhibitors for the treatment of ocular diseases, excluding cancer. Under terms of the agreement between both parties, Otsuka Pharmaceutical undertook, among other things, to invest US$1.5 million in the capital of the MethylGene through the purchase of common shares. The private placement is in satisfaction of that undertaking.
The common shares were acquired for investment purposes and not with a view to effecting control of MethylGene. Otsuka Holdings and its affiliates will evaluate their investment in MethylGene from time to time and may, based on such evaluation of market conditions and other circumstances, increase or decrease shareholdings in the company as circumstances require.
About Otsuka Pharmaceutical Co., Ltd.
Founded in 1964, Otsuka Pharmaceutical Co., Ltd. is a global healthcare company with the corporate philosophy: 'Otsuka-people creating new products for better health worldwide.' Otsuka researches, develops, manufactures and markets innovative and original products, with a focus on pharmaceutical products for the treatment of diseases and consumer products for the maintenance of everyday health. Otsuka is committed to being a corporation that creates global value, adhering to the high ethical standards required of a company involved in human health and life, maintaining a dynamic corporate culture, and working in harmony with local communities and the natural environment.
Otsuka Pharmaceutical Co., Ltd. is a wholly owned subsidiary of Otsuka Holdings Co., Ltd., the holding company for the Otsuka Group. The Otsuka Group comprises 153 companies and employs approximately 36,000 people in 23 countries and regions worldwide. Otsuka and its consolidated subsidiaries earned (Yen)955.9 billion (approx. US $9.7 billion*) in annual revenues in fiscal 2008.
* Exchange rate as of March 31, 2009.
SOURCE OTSUKA PHARMACEUTICAL CO., LTD.
For further information: For further information: please visit www.otsuka-global.com; Media Contact: Masamitsu Kitada, Public Relations Department, Otsuka Pharmaceutical Co., Ltd., +81 363617379 (9:00 to 17:00 Japan time), firstname.lastname@example.org