BXMillionairegeniemegawaysUs) is working with the management of I'rom Group, a Japanese pharmaceutical services company.MillionairegeniemegawaysTo privatize the latter. Blackstone will buy shares in I'rom at 2800 yen per shareMillionairegeniemegawaysA premium of about 50 per cent over the company's closing price of 1873 yen on Monday. Before the acquisition succeeds, I'rom will be delisted and Blackstone will own 55 per cent of the company. The remaining 45 per cent will be held by Toyotaka Mori, founder and president of I'rom. The offer values the company at about 35 billion yen ($218 million).
Tokyo-based I'rom provides clinical trial management services to pharmaceutical companies that need to conduct drug trials in Japan, a routine procedure for obtaining approval for the local sale and use of drugs.
Atsuhiko Sakamoto, senior managing director of Blackstone Japan office, saidMillionairegeniemegaways"due to drug lag, about 70% of the drugs sold in the United States and Europe are not available in Japan, so we are looking for a company that can help solve this problem."
Blackstone will help I'rom expand new businesses, such as identifying drugs in late-stage trials in the US and conducting trials in Japan in partnership with drugmakers to speed up local supply, Sakamoto said. I'rom specializes in oncology drug trials, an area where demand is expected to increase as Japan's population ages.
Blackstone plans to hold the investment for five years and then exit through a re-listing, Sakamoto said. Blackstone found Mori, the founder of I'rom, and worked with him for more than two years before reaching a deal. Mori will remain chief executive after I'rom is privatized.
Last year, the number of management buyouts (MBO) in Japan reached a record level, providing an opportunity for private equity investors.
Five months ago, Blackstone announced that it would buy a payment service provider from Sony Group. Blackstone also has stakes in Japanese health-care companies such as Ayumi Pharmaceutical and Alinamin Pharmaceutical.