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JSR to Establish Diagnostic Products Joint Venture in China

CORPORATE  12/05/2011
TOKYO - December 5, 2011 - JSR Corporation (President: Mitsunobu Koshiba) has agreed to establish a joint venture, "J & W Beijing Biotech Co., Ltd." with Beijing Wantai Biological Pharmacy Enterprise Co., Ltd. ("Wantai," General Manager: Qiu Zixin), a diagnostic drug manufacturer based in Beijing, China. The main purpose of the joint venture will be the development, manufacture and sale of latex reagents intermediates and chemiluminescent reagents intermediates. Wantai holds the largest market share in China of manufacturers of diagnostic products for infectious diseases, which include HIV (human immunodeficiency virus) and HCV (hepatitis C virus). The establishment of this joint venture will open up Wantai's China-wide sales network, thereby allowing for smooth sales promotion.

JSR has been supplying latex, magnetic, and other types of particle materials to diagnostics manufacturers both inside and outside Japan. However, by establishing this new joint venture in China, we will further expand into the diagnostic intermediates business through providing particle materials with antibody and other added functions.

The diagnostic market in China shows strong growth due to several environmental changes, including the expansion of the upper as well as middle class in coastal areas and the spread of medical services to rural areas as a result of government measures. The diagnostic market in China is expected to continue expanding both quantitatively and qualitatively.

In particular, while reagents for biochemical tests are already widely used in China, the market for sensitive diagnostic products utilizing the antigen-antibody reaction is regarded as very promising, since its growth rate is dramatically high at 40 to 50% per annum. Such products, including latex reagents and chemiluminescent reagents are used in the testing of tumor markers, cardiac disease markers and endocrine hormones markers.

Holding over half of the capital ratio of the joint venture, JSR will start sales making the most of Wantai’s nationwide distribution network. We are aiming to further expand our diagnostic product business in China taking advantage of the synergy effect produced by the combination of JSR’s particle technology and the business know-how Wantai has gained in the Chinese market thus far.
JSR is working to actively develop our business in Chinese market while considering future entry into Indian and Southeast Asian markets.