Pharmaceutical firm buys Japanese diabetes drug

The pharmaceutical company GlaxoSmithKline (GSK), one of the leading companies in this sector, has purchased exclusive rights to develop and market a new diabetes drug from Japan. The drug, currently at a pre-clinical stage, was being developed by Kissei Pharmaceutical Co. However, as of late last week, GlaxoSmithKline have taken over the drug, simply called ‘KGA.’
Kissei have released a statement saying that outside of Japa, South Korea and China, Glaxo will be in charge of selling KGA, once it has been completely developed. The deal, which is for an unknown amount, requires Kissei (who are based in Nagano Prefecture, Japan) to develop the drug, although they will receive milestone payments along the way.
KGA is an interesting new product for the diabetes market. KGA is an inhibitor that reduces glucose absorption into the intestines, thereby improving hyperglycaemic levels following mealtimes. Other companies are also developing SGLT inhibitors, including one Tanabe Seiyaku Co. who is being aided by Johnson &Johnson in the global market.
The deals are good financial news for the Japanese pharmaceutical industry, and will surely net the global investors enormous worldwide profits. Of late, the enormous global pharmaceutical firms have seen smaller companies gaining industry share, with novel bio-pharmaceutical products.