DNP And CMIC HOLDINGS Sign Strategic Alliance Agreement Targeting New Value Creation In Medical And Healthcare Field

Dai Nippon Printing Co., Ltd. (DNP) and CMIC HOLDINGS Co., Ltd. (CHD) have signed a Strategic Alliance Agreement. The business alliance will focus on new needs in the extensive value chain of pharmaceutical companies, and create new value in the medical and healthcare field.

In addition, by bringing together the CMIC Group’s various pharmaceutical industry support functions and healthcare solutions targeting the realization of a healthy society, with the advanced medical packaging, pharmaceutical synthesis, and secure information processing technologies offered by the DNP Group, the alliance aims to make new value proposals while responding to client needs.

CMIC CMO Co., Ltd. has so far operated as a formulation development¹ and manufacturing organization (CDMO: Contract Development and Manufacturing Organization) for the CMIC Group. As part of the new alliance, CMIC CMO will become a capital participation subsidiary of DNP.

In conjunction with the CMIC Group, the alliance will work on the integrated manufacture of active pharmaceutical ingredients (API) ² and the development of value-added pharmaceuticals.

Agreement Background and Aims
With the progressive decline in the birthrate and aging population in Japan, the medical industry is facing numerous challenges. These include the recentCOVID-19 pandemic and the increasing incidence of chronic diseases and cancer. While it is necessary to reduce health costs, diverse and advanced problem-solving is also required, such as the rapid development of new drugs, utilization of Information and Communication Technology (ICT) in regional medical care, along with data-based pre-symptomatic measures.

With a solid foundation of proprietary strength in Printing & Information (P&I) cultivated over a long period of time, the DNP Group has been engaged in a pharmaceutical packaging business derived from food packaging technology, and an API business that takes advantage of precision organic synthesis technology.

From an early stage, DNP has focused on advanced medical fields such as regenerative medicine, it will continue to support advanced medical business with AI–driven testing technology. At the same time, we are developing recent services leveraging ICT and online technology in fertility treatment, telemedicine, and medical checkups.

CMIC Group launched the first contract research organization (CRO) in Japan in 1992 and later entered into CDMO business. The Group maintains a strong customer base and advanced formulation technology with long track record. CMIC Group currently contributes to about 80% of new drug development in Japan, and provides extensive support for the value chain of pharmaceutical companies, including development, manufacturing, along with sales and marketing to solve problems in the medical and healthcare field.

As a result of the alliance, the resources of both partner companies will be combined to provide further enhanced support to pharmaceutical value chain. These include new value proposals related to the storage and distribution of pharmaceuticals, along with pre-symptomatic measures designed to reduce the risk of lifestyle-related diseases.

Agreement Summary

• Projects for the strategic alliance

Our two companies will collaborate and create synergies in the following business fields.

1. Development of value-added pharmaceuticals by combining the packaging technology of the DNP Group with the drug formulation technology of the CMIC Group
2. Establishment of an integrated system from the API process development and manufacturing of the DNP Group to the CMIC Group’s formulation development and manufacturing
3. Collaboration in the CMIC Group’s clinical development and clinical trial site support business areas utilizing DNP Group technology and know-how
4. Business alliance targeting the building of a healthcare ecosystem

• Overview of the alliance and capital participation in CMIC CMO by DNP

DNP will jointly operate CMIC CMO with CHD through the acquisition of 50.1% of CMIC CMO’s shares. CMIC CMO will become a consolidated subsidiary of DNP. In addition, CHD will
continue to hold 49.9% of the shares, and CMIC CMO will be a joint venture between our two companies.

Planned Overview of CMIC CMO
CMIC CMO will continue to provide comprehensive support for the development and manufacturing of pharmaceutical formulations, from investigational drugs to commercial applications.

The new alliance will provide innovative services from a new perspective to meet the expectations and trust of our clients that entrust us with the development of formulations and pharmaceutical manufacture, leveraging the strengths of the DNP Group in P&I and the solid strengths of the CMIC Group developed since the company was established. These strengths include business quality, reliable and speedy technology transfer system, and flexible mobility capacities that can quickly respond to all needs.

¹: Formulation refers to the preparation and shaping of pharmaceuticals according to the therapeutic aims.

²: Active Pharmaceutical Ingredients refers to the effective component of a drug.

• Company and products names mentioned in this release are the trademarks or registered trademarks of those companies
• Product specifications and service details referred to in this news release are current as of the date of the announcement. They may be changed without notice.