Daiichi Sankyo sells healthcare division to Suntory for USD1.6B in three phases

JAPAN—Japanese pharmaceutical company Daiichi Sankyo has agreed to sell its consumer healthcare subsidiary to beverage giant Suntory Holdings in a transaction valued at ¥246.5 billion (USD 1.6 billion).

The phased deal will unfold over three years, beginning this June with Suntory acquiring an initial 30% stake, increasing to 70% by June 2027, and reaching full ownership by June 2029.

The move marks Daiichi Sankyo’s strategic pivot toward its core pharmaceutical business, particularly its growing oncology portfolio, while Suntory expands its reach into the booming self-care and wellness market.

A Portfolio of Trusted OTC Brands

Daiichi Sankyo Healthcare brings with it a strong lineup of over-the-counter products that Japanese consumers have relied on for decades.

The portfolio includes Lulu, a popular cold remedy; Loxonin, an anti-inflammatory pain and fever reducer; Minon skincare products; and Clean Dental oral care solutions.

Beyond these flagship brands, the subsidiary operates across functional skincare, oral care, and food products—categories that align perfectly with Suntory’s growing health ambitions.

For Daiichi Sankyo, divesting this business allows the company to concentrate resources on its innovative medicines division, where it has emerged as a leader in antibody-drug conjugate (ADC) technology.

The company’s two most successful ADC therapies, Enhertu and Datroway—both developed in partnership with AstraZeneca—have secured approvals across multiple cancer types, including breast, gastric, and non-small cell lung cancers.

Daiichi Sankyo aims to expand its ADC reach from treating 120,000 eligible patients in fiscal 2025 to 700,000 by fiscal year 2030.

Suntory’s health sector expansion

For Suntory, this acquisition represents a major step in its transformation from a beverage company into a diversified health and wellness player.

The purchase follows Suntory’s entry into the sports nutrition market in 2024 through its acquisition of DNS.

By combining its beverage expertise with pharmaceutical-grade consumer healthcare capabilities, Suntory positions itself to capitalize on the ongoing convergence of food, beverage, and health sectors.

The phased structure of the deal provides breathing room for regulatory approvals and careful integration planning, with the total valuation subject to standard adjustments.

This measured approach allows both companies to align their operations and strategies before full ownership transfers.

Part of a broader trend

Daiichi Sankyo joins a growing roster of major pharmaceutical companies shedding their consumer health operations to focus on innovation-driven businesses.

Sanofi sold a controlling stake in its Opella consumer health division to private equity firm Clayton, Dubilier & Rice for €10 billion (USD17 billion) in 2024, while Johnson & Johnson spun out Kenvue and GSK created Haleon, both now independent consumer health companies.

This reshuffling of the healthcare landscape reflects a fundamental shift in how major drugmakers view their portfolios: innovation in prescription medicines increasingly drives shareholder value, while consumer health benefits from the scale and distribution networks of companies like Suntory.