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Roche Merges Japanese Subsidiary with Chugai

NEW YORK, Dec. 10 – Swiss pharmaceutical company Roche said Monday it was merging its Nippon Roche subsidiary with Japanese pharmaceutical company Chugai in a new entity that will be named Chugai Pharmaceutical. 

Chugai chairman and CEO, Osamu Nagayama, will be the chairman and CEO of the merged company. Wataru Ogawa, Nippon Roche’s current president and CEO, will be nominated for a seat on the board of directors. Roche will hold 50.1 percent of the company’s shares.

The new company will be managed autonomously, but the companies said that Chugai’s activities would be coordinated with Roche.

"The combination of Chugai's and Nippon Roche's skilled employees together with the current product portfolio and pipelines, which are complementary and particularly focused on the growth segments of the Japanese markets, will enable us to create a very solid franchise in the Japanese market over the coming years,” Nagayama said in a statement.

 “Through this alliance Chugai becomes the first Japanese pharmaceutical company to have access to all world markets." 

Chugai will be Roche's exclusive pharmaceutical representative in Japan and will have rights to develop and market pharmaceutical products Roche decides to commercialize in Japan. Roche will have the right to license all Chugai products outside of Japan and South Korea for which Chugai seeks a partner.

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