Daiichi Sankyo turns over domestic logistics to Yasuda Warehouse
|Japan's Yasuda Warehouse|
The drugmaker in April outsourced the distribution center operations of Daiichi Sankyo Logistics to Yasuda Warehouse Co., the drugmaker said today in its earnings report. The move is part of a larger effort by Daiichi Sankyo to reorganize its three Japanese supply chain subsidiaries--Daiichi Sankyo Propharma, Daiichi Sankyo Chemical Pharma and Daiichi Sankyo Logistics--into two operating units by April 2015.
Under that plan one company will supply drug precursors and active ingredients, and the other will handle drug formulation, packaging and the related drug distribution functions. Toward that end the company a year ago integrated its Propharma and Chemical Pharma plants in Odawara into a single facility in April 2013.
But the biggest change in manufacturing for Daiichi Sankyo will be when it finalizes the sale of Ranbaxy Laboratories to Sun Pharmaceutical in a $3.2 billion stock swap that will make the Japanese drugmakers Sun's largest shareholder with about 9%. Since buying majority control of India's largest generic drugmaker in 2008 for $4.6 billion, Ranbaxy has had nothing but problems with the FDA for drug testing and manufacturing failures. Sun, which with the merger will become India's largest generic drugmaker, has promised to return the four Ranbaxy plants the FDA has banned back to compliance and shipping again to the U.S.