News

Kuraray Medical (KM), wholly owned subsidiary of Kuraray, and Asahi Kasei Medical (AM), wholly owned subsidiary of Asahi Kasei Pharma, have revised their plan for the integration of medical device businesses as announced on December 14, 2006.

Businesses subject to integration on October 1, 2007

Proportion of ownership of the integrated company

Reason for revision

In the course of prior consultation with the Japan Fair Trade Commission (JFTC), it became apparent that a response from the JFTC to the effect that there would be no concern of restraint on competition in the domestic market for therapeutic apheresis devices would not be forthcoming soon enough to enable the planned business integration to proceed on schedule. AM and KM therefore opted to proceed first with an integration only of their dialyzer businesses. The revision of the proportion of ownership of the integrated company reflects valuation based on the revised scope of businesses subject to integration.

Outlook

AM produces devices based on polysulfone hollow-fiber membrane technology, the global standard for high-performance clearance of low-molecular-weight proteins, and devices based on cellulose hollow-fiber technology, while KM produces devices based on Eval® ethylene-vinyl alcohol copolymer (EVOH) hollow-fiber technology, featuring outstanding biocompatibility and enabling mild and gentle therapy for older patients and those just beginning treatment. The integration of the two companies’ hollow-fiber technology and know-how will accelerate the development of next-generation devices which offer greater safety and efficacy, enabling the integrated operation to enjoy a solid position as a global leader in medical devices, well placed for expansion and growth.

Integration process

The Sepacell™ leukocyte reduction filter and Planova™ virus removal filter businesses of AM will be transferred to a newly established company. AM, retaining its dialyzer and therapeutic apheresis device businesses, will be renamed Asahi Kasei Kuraray Medical Co., Ltd. The dialyzer businesses of KM will be transferred to Asahi Kasei Kuraray Medical. KM will retain its dental adhesive and filling resin business and its therapeutic apheresis device business. A-K Membrane Manufacturing Co., Ltd., joint venture of AM and KM for the production of Eval® hollow-fiber membrane for medical devices, will become a wholly owned subsidiary of Asahi Kasei Kuraray Medical, and then merged with that company.

Schematic representation of the business integration
(percentages indicate ownership)

Profile of the integrated business

Kuraray Medical corporate profile

Asahi Kasei Medical corporate profile

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