C.R. Bard said it will buy for ¥11.2 billion ($93.3 million) Kobayashi Pharmaceutical’s 50% share of ownership in Medicon, the joint venture formed by the companies in 1972 to import and market Bard’s medical technology products in Japan.

Bard said it has shown the ability to carry out a direct selling model in international markets in recent years, even as Medicon has built clinical and regulatory capabilities allowing it to more effectively introduce new products.

Bard said its decision to take a more direct role with clinicians and patients in Japan resulted from a conclusion that future growth opportunities in Japan will come from market segments that are more clinically differentiated, including peripheral vascular and vascular access.

“As the growth opportunities in Japan evolve, we believe it is time to enhance our presence in the third largest healthcare market in the world,” Timothy M. Ring, Bard chairman and CEO, said in a statement.

Bard will pay Kobayashi gradually between this year and 2025, starting with a payment of ¥3 billion (about $25 million) at closing, followed by additional payments annually on the anniversary date of the transaction. The annual payments will slide from ¥1.9 billion ($15.8 million) in 2016 to ¥300 million ($2.5 million) in 2025.

Bard said it expects the deal to add approximately $40 million to 2016 net sales. On an operational basis (excluding the impact of foreign exchange), the company expects the transaction to be neutral to adjusted cash earnings per share both in the fourth quarter of 2015 and full-year 2016, and to be accretive thereafter.

Including the impact of foreign exchange, however, the company expects the transaction to reduce fourth quarter 2015 and full year 2016 adjusted cash earnings per share by approximately 5 cents and 20 cents, respectively.

Bard will acquire Kobayashi’s half-share through a share redemption, in a deal expected to close in early November, after which Medicon will be a wholly-owned subsidiary of Bard. The transaction has been approved by each company’s board of directors and is subject to customary closing conditions.

Headquartered in Murray Hill, NJ, Bard develops, manufactures, and markets medical technologies in the fields of vascular, urology, oncology and surgical specialty products.

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