Sofamor Danek Group Announces Joint Venture with Kobayashi Pharmaceutical Co.

Sofamor Danek Group, Inc. has signed a letter of intent with Kobayashi Pharmaceutical Co., Ltd. to form a joint venture company, Kobayashi Sofamor Danek, K.K., to market Sofamor Danek's products in Japan. This partnership aims to solidify Sofamor Danek's distribution network in Japan while improving margin potential. James J. Gallogly, president and chief operating officer, praises Kobayashi Pharmaceutical for their instrumental role in Sofamor Danek's recognition as a leader in the Japanese spinal market.

Key Takeaways:

• Sofamor Danek Group, Inc. has signed a letter of intent with Kobayashi Pharmaceutical Co., Ltd. to form a joint venture company, Kobayashi Sofamor Danek, K.K.
• The joint venture aims to solidify Sofamor Danek's distribution network in Japan while improving margin potential.
• Kobayashi Pharmaceutical Co., Ltd. is a billion-dollar medical products company that has been Sofamor Danek's distributor in Japan for three years.
• James J. Gallogly praises Kobayashi Pharmaceutical for their instrumental role in Sofamor Danek's recognition as a leader in the Japanese spinal market.
• Sofamor Danek will sell its products to the joint venture company, which will resell them at near retail prices through Kobayashi Pharmaceutical's distribution network.
• Sofamor Danek plans to consolidate the financial results of the joint venture company as part of its reporting entity.
• Kobayashi Pharmaceutical Co., Ltd. is primarily involved in the manufacturing and wholesaling of OTC drugs, toiletries, and dental products, as well as medical devices used in various specialties.
• Sofamor Danek Group, Inc. is primarily involved in developing, manufacturing, and marketing spinal devices used in the surgical treatment of spinal disorders.
• Sofamor Danek's stock is traded on the New York Stock Exchange (NYSE) under the symbol SDG.

Statistics:

• Sofamor Danek's products will be sold at near retail prices through Kobayashi Pharmaceutical's distribution network.
• The joint venture aims to improve Sofamor Danek's margin potential in Japan.
• Sofamor Danek has been a distributor in Japan for three years.
• Kobayashi Pharmaceutical is a billion-dollar medical products company.

Sources:

• BUSINESS WIRE, Sofamor Danek Group, Inc. (1995) - "Sofamor Danek Group Announces Joint Venture with Kobayashi Pharmaceutical Co."
• Sofamor Danek Group Inc., James J. Gallogly or Laurence Y. Fairey, 901/396-2695