Fujifilm bolsters healthcare with two biotech buys for $800m

Fujifilm has made no secret of the fact it is looking to switch up part of its core business to build a strong healthcare unit to provide growth where its traditional business, photographic film, has fallen off dramatically in recent years.

Only last month, it revealed a partnership with fellow Japanese giant, Takeda, to focus on regenerative therapies, using stem cells.

In its latest move in the area, it revealed that it will spend $800 million to acquire JXTG’s two cell culturing business, Irvine Scientific Sales Company (ISUS) and ISJ.

Both companies have already established their markets, with ISUS distributing culture media to the US and European market, while ISJ exports its products mainly within Japan and Asia.

The press release on the announced acquisition referenced the growing demand for cells used in the latest treatments and in antibody drugs, noting that there is a predicted annual growth rate of the sector of 10%.

The Fujifilm press release on the move explained where it sees the crossover of its recent acquisitions and its core business: "With acquisition of ISUS and ISJ, Fujifilm will now be able to provide a broad product portfolio from biopharmaceuticals to in vitro fertilization and cell therapy, strengthening its global business. Utilizing its advanced chemical synthesis and design capabilities cultivated in the photographic film business and the cell preparation and culturing technologies of its group companies such as J-TEC, Cellular Dynamics International and Fujifilm Diosynth Biotechnologies, Fujifilm will accelerate the development of highly competitive cell culture media, supporting the further growth of its cell culture media business."

It also noted synergies that will arrive from its further expansion into contract development and manufacturing business, alongside further R&D activities and the growth of reagent business.

The deals are expected to complete by June of this year.

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