The deal – financial terms of which were not disclosed – is a joint R&D and marketing partnership that will see SDK invest in BIASep to access the firm's biomanufacturing resin development and production knowhow.
SDK said it “decided to enter the purification resin market through the strategic partnership with BIASep, expecting to achieve good synergistic effect in terms of both technology and product mix. The market is expected to grow rapidly with the expansion of the biopharmaceutical industry.”
Diversification
The rationale for the partnership was set out under the ‘Pegasus’ business strategy that SDK announced earlier this month when it indicated that diversification of its chemicals business was and important part of offsetting a decline in sales and operating income.
“SDK's Electronics segment, driven by the HD media business, is expected to record higher sales and operating income compared with 2011 results. However, other segments will record lower sales and operating income.
“As a result, SDK's consolidated net sales for 2012 will amount to JPY 750bn, a decline of approximately JPY 100bn. Consolidated operating income will be JPY 32bn, down about JPY 15bn.”
In response SDK said it will revamp each of its operations units – electronics, inorganics, petrochemicals, aluminium and chemicals – in 2013, citing the investment in BIASep and the biomanufacturing separations sector as a key part of the plan.
Prior to the new agreement, SDK’s dealings with the drug industry focused around its range of Shodex HPLC columns – which it supplies to public institutions and drug industry quality control departments - and its industrial catalysts business.