Japan’s pharmaceutical giant Daiichi Sankyo plans to sell its wholly owned Over-the-Counter (OTC) unit for nearly $900 million, Nikki Business reported. Daiichi Sankyo is in talks with several companies in an effort to sell its unit.
However, the company’s spokesperson declined to comment on the proposed plan. Its OTC unit makes an energy drink called Regain, Lulu Attack cold medicine, and Gaster 10 stomach medicine.
According to the Global Alzheimer’s Disease Drug Market research report, Daiichi Sankyo ranks third in the top contenders based on serving segments, market approach, and product development.
Several reports have stated that the company is now focusing on developing cancer treatments. This is mainly to counterbalance a drop in revenue after the patent expiration of its chief blood pressure drug Benicar.
The drug is used in the treatment of hypertension. The Benicar drug brought in nearly 27 percent of annual revenue for Daiichi Sankyo at the time of its patent expiration. In 2014, the FDA banned Ranbaxy Laboratories where the company had acquired a major stake in 2008. The ban was due to manufacturing violations.
Hurdles of that sort have encouraged it to devise new revenue plans.
Adison Gazette reported that ‘Daiichi Sankyo has revealed negative downward near-term momentum for shares’. Based on its recent performance, its shares have moved -1.24 percent over the past week, 10.81 percent over the past four weeks, 32.45 percent over the past half year and 32.79 percent over the past full year.