Drug Research Firm Will Be Acquired by Japanese Distributor

A small pharmaceutical research company here said Thursday that it has agreed to be acquired by Japan’s second-largest drug distributor.

The terms of the agreement between the Institute for Biological Research and Development Inc. in Irvine and Japan’s Kuraya Pharmaceutical Co. Ltd. were not disclosed.

“Our relationship (with Kuraya) represents the union between a research and development firm and a major pharmaceutical distributor,” said F. Richard Nichol, IBRD’s chairman and president.

IBRD, with 1989 revenue of $15 million, assists pharmaceutical firms in gaining Food and Drug Administration approvals for their products. About 10% of the company’s business is with Japanese clients.

Nichol said that the deal should not only help IBRD gain more business in Japan but that Kuraya has also agreed to provide financing for his firm to acquire European companies in similar businesses. He said IBRD is negotiating to buy an English company and also looking at a possible acquisition in Germany.

The Irvine firm is currently limited to helping drug companies seek government approval for their products in the United States. The acquisitions in Europe would enable IBRD to assist its U.S. and Japanese clients that want to sell their drugs in Europe, which is moving to adopt drug-approval procedures similar to those in the United States.

IBRD, which has 125 employees, including 90 in Irvine, began negotiations with Kuraya’s Torrance subsidiary, Kuraya American Systems Inc., in August. Iwao Chujoh, president of Kuraya American, declined to comment on the transaction.

Nichol said that a definitive agreement is expected to be signed in 10 days and that the sale should be completed by early December.