Otsuka announces joint venture for diabetes treatment

Otsuka Pharmaceutical Factory has announced details of a joint venture with
Living Cell Technologies (LCT) that will aim to develop pancreatic islets as a diabetes treatment.

The project is set to be run by a new company known as Diatranz Otsuka and will be based in New Zealand, the home of LCT.

According to Otsuka, the joint venture will work on the clinical development and commercialisation of Diabecell, a pancreatic islet developed by LCT for the prevention and treatment of diabetes.

In a statement, Otsuka said the partnership will "strengthen its research and development in the field of regenerative medicine and further actively expand its business, not only in Japan but also on the international stage".

The Japanese pharmaceutical firm is already an investor in the Auckland-based company, having purchased 25 million ordinary shares in April this year. It has agreed to invest AU$25 million (16.2 million pounds) in the joint venture company.

Deaths from diabetes are expected to double between 2005 and 2030, according to the World Health Organization.