Announcement of Acquiring 100% Ownership of Hitachi Chemical Diagnostics System

April 13, 2021

Showa Denko Materials Co., Ltd.

Showa Denko Materials Co., Ltd. (President and CEO: Hisashi Maruyama; hereinafter “Showa Denko Materials”) announces the conversion of its consolidated subsidiary Hitachi Chemical Diagnostics Systems Co., Ltd. (hereinafter “HKDS”) to a wholly owned subsidiary, effective April 1, 2021, following the acquisition of all common shares (hereinafter “remaining shares”) of HKDS owned by Kyowa Kirin Co., Ltd. (President and CEO: Masashi Miyamoto; hereinafter “Kyowa Kirin”).

The Showa Denko Materials Group began developing, manufacturing, and selling in vitro diagnostics (diagnostic reagents) such as allergy in the 1980s. With the acquisition of a 66.6 percent stake in Kyowa Medex Co., Ltd. (current HKDS) from Kyowa Hakko Kirin Co., Ltd. (current Kyowa Kirin) in January 2018, the Group has strengthened its diagnostics business by boosting its lineup with HKDS’ products, including diagnostics reagents for hyperlipidemia,^※1diabetes, cancers, and kidney diseases. Showa Denko Materials owned the right to purchase the remaining shares of HKDS and Kyowa Kirin owned the right to sell the remaining shares roughly three years after the share transfer. As initially planned, Showa Denko Materials has acquired the remaining 177,700 shares (33.4%) to make HKDS a wholly owned subsidiary.
This 100 percent ownership will allow Showa Denko Materials to make swifter decisions on important matters concerning HKDS’ management, and paves the way for the Group’s diagnostics business to establish an integrated management structure that includes Group company Hitachi Chemical Diagnostics, Inc., which is responsible for operations in the United States. We aim to accelerate our diagnostics business in the US and expand the business into global markets.
We will continue to collaborate with Kyowa Kirin from the development to sale of diagnostic reagents for FGF23-related hypophosphatemic rickets and osteomalacia^※2 and other products.

The Showa Denko Group positions life sciences, including diagnostics, as a “Next-Generation business” driving its future growth. We will further expand our business to boost the growth of the entire Showa Denko Group while contributing to improving the quality of life.

 

• ※1 Hyperlipidemia: Hyperlipidemia is a condition with abnormally high levels of LDL (bad) cholesterol and triglycerides and a low HDL (good) cholesterol level in the blood. This condition can lead to arteriosclerosis, which can cause serious cardiovascular diseases such as heart attacks and strokes.
• ※2 FGF23-related hypophosphatemic rickets and osteomalacia: Hypophosphatemic rickets and osteomalacia refer to diseases that cause abnormal bone calcification and bone weakening due to low phosphate levels in the blood, and are designated as intractable diseases by the Japanese government. Among these bone diseases are FGF23-related hypophosphatemic rickets and osteomalacia caused by excessive actions of fibroblast growth factor-23 (FGF23), with common forms of the disorders including X-linked hypophosphatemia (XLH) and tumor-induced osteomalacia (TIO). It has been reported that measuring FGF23 is useful in differential diagnosis of these disorders because of their high serum FGF23 levels.

 

Outline of HKDS (as of March 31, 2021)

• ※ The President and COO changed to Naoki Kanenari as of April 1, 2021.

• To Japanese