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Teijin & Nakashima to set up JV on medical device business

28 Feb '15

2 min read

Teijin Limited will acquire, through a third-party allotment, new shares of Nakashima Medical Co., Ltd., Nakashima Holdings’ wholly owned subsidiary specialising in joint prostheses.

“The 50-50 joint venture named Teijin Nakashima Medical Co., Ltd. will begin operations as of April 1,” a press release from Teijin informs.

This tie-up will develop global business in the medical device field by integrating Nakashima’s core competencies in high-level metalworking and joint prostheses.

Teijin’s on its part will contribute with its expertise in materials technology, primarily polymeric chemistry, and healthcare-related development and sales capabilities.

The joint venture will strategically restructure its existing sales force in line with business targets that will be identified in cooperation with Teijin Pharma, a Teijin group company specialised in healthcare business.

The new company aims to develop revolutionary products based on synergies between its two parent companies and incorporate a range of technologies, through Teijin’s global network.

Teijin Nakashima Medical will aim to become a major manufacturer of Japanese-made joint prostheses while laying the groundwork for global expansion and the JV has targeted sales of ¥10 billion by 2020.

Nakashima Medical, originally established as an internal unit in 1987, was spun off as a wholly owned subsidiary of the Nakashima Group in 2008.

Leveraging its expertise in metalworking and product development, such as vitamin E polyethylene, the company has grown its annual sales to approximately ¥3 billion.

With just a 3 per cent share of the Japanese joint prostheses market, the company has decided to partner with the Teijin Group to further grow its business in an increasingly competitive environment.

The Teijin Group’s global businesses include high-performance materials focused on polymeric chemistry, as well as drugs and home healthcare.

Going forward, Teijin aims to develop new businesses, including by integrating high-performance materials and healthcare, in line with growth strategies in the Teijin medium-term business plan. (AR)

Fibre2fashion News Desk - India