Beleaguered Japanese dairy group Snow Brand Milk Products has finalised the details of its clinical nutrition with Otsuka Pharmaceutical Co., giving Otsuka control of Snow Brand’s nutrition business. The new company was set up yesterday [Tuesday].
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From 1 June, the new company, Tokyo-based EN Otsuka Pharmaceutical Co., will take over nutrients production at Snow Brand’s existing plant in Hanamaki, Iwate Prefecture. The new company will also be involved in the researching and distributing enteral nutrients, medical food and food products tailored to the requirements of the elderly.
Otsuka provided 60% of the new company’s seed capital of ¥10m (US$75,000), which will later be raised to ¥3.01bn. Sales of ¥8.5bn are forecast for the first year of trading.
This is not the first time the two companies have worked together; they cooperated to varying degrees throughout the 1990s.
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