Boehringer Ingelheim will acquire the remaining 40 percent of the equity in the Japanese over-the-counter consumer drug manufacturer SSP in a deal worth $8.12 per share or $913million in total. This deal with SSP, that generates over 80 percent of its revenue in Japan and sells the painkiller Eve and the constipation medicine Detofiber, will enable Boehringer to expand their already extensive consumer healthcare business globally and into the world’s second largest pharmaceutical market.

It will also provide Boehringer with access to SSP’s formulation and production technologies and experience in the Japanese pharmaceutical market. Boehringer will also be able to gain leverage by capitalising SSP’s well respected corporate name and product brands in Japan.

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The acquisition will also enable SSP to continue to develop new OTC products using Boehringers skills and pharmaceutical expertise and industry resources. In addition, Boehringer now has the potential to work more aggressively and develop drugs that can switch from Rx to OTC.

This acquisition is certainly intriguing and will enable Boehringer and SSP to develop new formulation technologies and expand the market position of both companies within the industry.