Teijin and Nakashima Holdings are joining forces to try to claim a bigger share of the Japanese medical device market. Teijin is acquiring half of Nakashima Medical, a subsidiary of Nakashima Holdings, for about ¥1.5 billion ($12.6 million) as of April 1. The resulting entity will be Teijin Nakashima Medical. Its aim is to improve upon the meager 3% that Nakashima holds of the competitive Japanese joint implant market.
The JV will combine Nakashima's metalworking and joint implant capability with Teijin's material technology expertise, particularly polymeric chemistry, as well as its development and sales capabilities. It plans to restructure the existing sales force to address the combined business goals.
Teijin Nakashima hopes to develop "revolutionary products based on synergies between its two parent companies" that also incorporate internal and external technologies, according to a statement. The JV hopes to become a major manufacturer of Japanese joint implants, with a target of ¥10 billion ($84.1 million) in sales by 2020.
Nakashima Medical is focused on the development, manufacturing and sale of medical devices including joint and trauma implants. At the beginning of the year, it had 186 employees. Currently, it has a 70% share of the Japanese marine propulsion systems market, with a 30% share of the global market. It has annual sales of about ¥3 billion ($2.5 million).
Nakashima Holdings has 11 companies and 1,300 employees. It posted revenues of ¥34 billion ($3.1 billion) in its fiscal year ending Nov. 30. For its part, Teijin has 150 companies and 16,000 employees with ¥784.4 billion ($7.7 billion) in sales. The Teijin Group is focused on high-performance materials, particularly based on polymeric chemistry as well as drugs and home healthcare.
- here is the release