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Baring Asia says agrees to buy Japan drugmaker Bushu from Tokio Marine-Reuters

(Reuters) – Hong Kong-based Baring Private Equity Asia said on Monday it has agreed to buy Japanese drugmaker Bushu Pharmaceuticals, valued at 77.3 billion yen ($668 million), from Tokio Marine Capital.

Bushu is a leading pharmaceutical contract manufacturing organisation (CMO) in Japan.

Japan’s CMO sector has grown fast since the Pharmaceutical Affairs Law was changed in 2005, allowing full-scale outsourcing of drug manufacturing, Baring Private Equity said in a statement. Baring will take a 100 percent stake in Bushu.

The CMO sector in Japan is still underpenetrated compared with the country’s overall pharmaceutical drug manufacturing and is expected to expand rapidly, the statement said.

The deal is Baring’s latest foray into Japan. The buyout firm was in talks to buy a majority stake in the audio-video operations of Japanese car electronics maker Pioneer Corp earlier this year but backed out of the proposal.