Suntory acquires Daiichi Sankyo Healthcare in £1.14bn deal
Japanese drinks goliath Suntory Holdings is set to snap up the over-the-counter medicine business, Daiichi Sankyo, in a deal worth ¥246.5 billion (£1.14bn), as it seeks to expand further into healthcare.
The move comes amid a broader trend among Japanese beverage companies diversifying into health and life sciences.
The agreement will see Suntory take full ownership of Daiichi Sankyo Healthcare, which produces a range of well-known non-prescription treatments in Japan, including cold remedies, painkillers and skincare products.
Daiichi Sankyo said the transfer would take place in stages, beginning with a 30% stake in June 2026, with the full acquisition expected to be completed by June 2029.
Beyond beverages
Suntory, best known for its whisky and soft drinks, has been growing its presence in health-related products through subsidiaries such as Suntory Wellness and Suntory Beverage & Food. These businesses produce supplements and functional drinks aimed at increasingly health-conscious consumers.
In a statement, the company said the acquisition would allow it to broaden its reach across “self-care and self-medication”, covering everything from prevention to treatment.
Partner Content
Daiichi Sankyo Healthcare’s portfolio includes painkillers Roxonin, gastrointestinal Gaster 10, and cold medicine Lula. The unit has also expanded into skincare, oral care and food products, as well as direct-to-consumer sales and overseas markets.
Suntory said combining the two companies’ expertise in branding, product development and marketing would help create a “comprehensive self-care business” and a new driver of growth.
Industry trends
Rival brewer Kirin Holdings has also pivoted into healthcare in recent years, including the acquisition of Australian supplements firm Blackmores and a majority stake in cosmetics and health food company Fancl.
These deals reflect changing consumer demand and an ageing population in Japan, driving companies to seek growth beyond traditional alcohol markets.
Strategic shift for Daiichi Sankyo
For Daiichi Sankyo, the sale reflects a shift in focus towards its core pharmaceutical operations, particularly innovative medicines and cancer treatments.
The company said the deal would support the continued growth of its consumer health business under new ownership, while allowing it to concentrate resources on its oncology pipeline.
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