GTC Biotherapeutics (fka GTCB)

[DewDiligence]

BioWa’s parent company, Kyowa Hakko Kogyo,
is in merger discussions with Kirin Brewery:

http://www.reuters.com/article/marketsNews/idUKT5720071019

>>
Kyowa Hakko has been winning more and more attention from investors due to its antibody-enhancement technologies, in particular its Potelligent technology, which is expected to deliver more potent antibodies and cut production costs.

Kirin Pharma spokesman Tomoyuki Kawahara said Chugai Pharmaceutical Co Ltd [an affiliate of Roche], Kyowa Hakko and Kirin Pharma are the leading players in the promising field of antibody drugs, which tend to have fewer side-effects than regular medications.

Nomura Securities analyst Tetsuhito Morita said a string of acquisitions in the global antibody drug market likely made Kyowa Hakko wary of a hostile takeover and pushed it into the arms of Kirin, which at the same time is under pressure from investors to use its ample cash.

"In Europe and the United States, the antibody drug market has become the centre for takeover bid dramas, and that is now happening in Japan," Morita said.

Kirin has been using acquisitions to reduce its reliance on the domestic beer business, which accounts for nearly half of its group revenue. It has diversified into overseas markets, other alcoholic beverages and the pharmaceutical business.

News of the latest deal sent shares of Kyowa Hakko up 16.6 percent to end the day at 1,402 yen, while Kirin's rose 1.2 percent to 1,586 yen, both outperforming a fall in the broader Tokyo market.
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