Description:Â Â Dainippon Sumitomo Pharma Co Ltd (4506.T) agreed on Thursday to buy U.S. drugmaker Sepracor Inc (SEPR.O) for $2.6 billion, giving the Japanese firm a big, local sales force in the world’s largest drugs market. The deal is the latest in a string of overseas acquisitions by Japanese drugmakers keen to grow outside a mature home market and build product pipelines before key drug patents expire.
Source: Bloomberg. com
Keys: Mergers and acquisitions
Questions for discussion:
- What are some of the main reasons â€“financial and otherwise, this deal makes sense for both sides?
- Are there any downsides to this deal for anyone?
- How else can these firms grow? Explain your answer.