Description:   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

Date: 9/03/2009

Keys: Mergers and acquisitions

Link: http://www.reuters.com/article/americasMergersNews/idUST4245420090903

Questions for discussion:

• What are some of the main reasons –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.