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Kobayashi Profit Increases Due to Success in Generic Drug Business

This article was originally published in PharmAsia News

Executive Summary

For the third fiscal quarter, Kobayashi Pharmaceutical's profits increased by 2.6 percent even as its revenue decreased by 11 percent. President Yutaka Kobayashi credits the increase to its mergers and acquisitions strategies in its generic drug business. Kobayashi's generic, metabolic syndrome drug Naishitoru, launched in 2006, has brought in ¥3.5 billion ($32.7 million) in annual revenue. In 2005, Kobayashi bought the brand Inochi no Haha, a generic menopause drug with ¥0.3 billion ($2.8 million) in estimated annual revenue. In the first year following the purchase, Inochi no Haha surpassed the ¥1 billion in revenue. Already a major player in the generic drug industry, Kobayshi sees more space to grow in this area, and its M&A will not only focus on large companies, but also on mid-sized firms. (Click for more-Japanese language

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