Kyowa Kirin Sells China Unit, Reduces Small-Molecule Research

Kyowa Kirin is undergoing a significant overhaul of its global operations, including selling its business in China and scaling back its small-molecule drug discovery efforts. Abdul Mullick, the Chief International Business Officer, stated that mounting challenges in the Asia-Pacific (APAC) region are the primary reasons for these strategic changes.

In a transaction valued at CNY 750 million (approximately $105 million), Kyowa Kirin will transfer its Chinese operations, including five established brands, to WinHealth Pharma, a company based in Hong Kong. As part of the agreement, WinHealth Pharma will gain commercial rights to two of Kyowa Kirin's key drugs, Crysvita (burosumab) and Poteligeo (mogamulizumab), in China. Crysvita is an antibody approved for treating X-linked hypophosphataemia and tumour-induced osteomalacia, while Poteligeo is approved for treating two types of cutaneous T-cell lymphoma.

In parallel, Kyowa Kirin has also entered into agreements with DKSH Holding, granting the latter commercial rights to seven established brands across various APAC markets. Additionally, DKSH will receive rights to market Crysvita and Poteligeo in specific countries within the region.

Kyowa Kirin is also making substantial reductions in its in-house small-molecule drug discovery research. The company announced that this move is part of its strategic shift towards focusing on antibody technologies and haematopoietic stem cell gene therapy. The new focus areas include bone and mineral disorders, haematologic cancers, intractable haematologic diseases, and rare diseases.

The restructuring efforts will also affect Kyowa Kirin's manufacturing operations. The company plans to downsize its workforce within the chemistry, manufacturing and controls (CMC) research and quality divisions. To facilitate this transition, Kyowa Kirin is offering a voluntary early retirement program to eligible employees in Japan.

These strategic changes underscore Kyowa Kirin's commitment to adapting to the evolving challenges in the pharmaceutical industry. By divesting its less profitable segments and streamlining its operations, the company aims to focus more on innovative therapies that promise better returns and align with its long-term vision.

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