Nitto Denko Group CSR & Annual Report 2011

CSR & Annual Report 201120BusinessActivitiesMedical BusinessA base producing transdermal drug delivery patches in Osaki-shi, Miyagi Prefecture was affected by the Great East Japan Earthquake and was forced to shut down operations. However, it has already been restored and restarted operations. The interruption to production was not significant. On the other hand, one of the Group companies in the US shut down production voluntarily, partly aiming at concentrating on activities to improve quality control. As a result, sales were somewhat weak.However, our medical business is closely linked to “Fine” (life science) which is one of our three key values: “Green, Clean and Fine”. In order to achieve further growth in the future, we are actively developing this area of our business. Domestically, in April 2010, we signed an agreement with Kowa Company, Ltd. for the joint development of transdermal drug delivery patches based on the medicinal compound donepezil hydrochloride. By utilizing our drug delivery patch technology, we will co-develop an inhibitor of the symptoms of Alzheimer’s disease.Overseas, through Nitto Americas, Inc., our headquarters in the US, we acquired Avecia Biotechnology, Inc. of Massachusetts in February 2011. Avecia Biotechnology, Inc. is a leader in the manufacture of nucleic acid medicine on consignment. Synergy effects from the acquisition are anticipated.Avecia Biotechnology, Inc. Joins Nitto Denko Group— Strengthens Nucleic Acid Drug Manufacturing Capabilities —On February 2, 2011, Nitto Denko acquired the US company Avecia Biotechnology, Inc. (ABI). The company will act as the Medical Division’s primary facility in the manufacture of oligonucleotide drugs.Founded in Milford, Massachusetts in 1999, ABI accounts for more than 50% of the global contract manufacturing of oligonucleotide drugs and has extensive experience in analysis and quality control in this field. The Nitto Denko Group has been active in oligonucleotide drug-related R&D for some years and produces a solid polymer support (NittoPhase®HL) for the synthesis of oligonucleotide drugs at its Tohoku Plant in Miyagi Prefecture, which is then marketed throughout the world.Acquisition of ABI will enable us to expand our business in the emerging oligonucleotide drug market, and it is our hope that we will be able to bring to market oligonucleotide drugs that will benefit many people throughout the world.ABI productsABI HeadquartersCompany Name: Avecia Biotechnology, Inc.•Description of Business: Manufacture of oligonucleotide drugs•Location: Milford, Massachusetts, USA•