Case Study

Chugai (B): Alliance with Roche to be among the best

8 pages
November 2025
Reference: IMD-2710

Chugai B examines the pivotal strategic alliance formed in October 2002 between Chugai Pharmaceutical and Swiss giant Roche. Facing constraints in RD funding and global reach, Chugai’s President Osamu Nagayama sought a partnership to achieve the firm’s ambition of becoming Japan’s number one pharmaceutical enterprise while preserving its autonomy. The case examines the unique business model by which Roche acquired a 50.1 equity stake while Chugai retained its management, public listing and corporate identity. This structure created a powerful synergy: Chugai gained exclusive rights to develop and market Roche’s innovative products in Japan, while Roche leveraged Chugai’s RD pipeline for its global distribution network. The case details how the alliance transformed Chugai from Japan’s 10th largest pharma firm into its market leader in oncology and by market capitalization by 2024. It provides a rich context for analyzing how strategic partnerships can bridge resource gaps, foster a ‘capability revolution,’ and accelerate a company’s path to becoming a global innovation powerhouse.

Learning Objective
  • Leverage strategic alliances for breakthrough growth.
  • Analyze the design and execution of innovative partnerships to create win-win value chains.
  • Explore how to cultivate dynamic capabilities for continuous reinvention and strategic pivots when needed.
Keywords
Strategy, Mergers and Acquisitions, Organizational Culture, Global Business, Strategic Alliance, Global Strategy, Cross-border Collaboration
Settings
Asia
Chugai Pharmaceutical, Healthcare, Pharmaceuticals
2002-2023
Type
Published Sources
Copyright
© 2025
Available Languages
English
Related material
Teaching note
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This case study is part of a series
  • Chugai (A): Overcoming adversity with a transformative leap
  • Chugai (B): Alliance with Roche to be among the best
  • Chugai (C): Navigating the next century of global innovation
This case study is part of a series
  • Chugai (A): Overcoming adversity with a transformative leap
  • Chugai (B): Alliance with Roche to be among the best
  • Chugai (C): Navigating the next century of global innovation
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Chugai (A): Overcoming adversity with a transformative leap
By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2709 ©2025
Summary
Chugai A traces the transformative journey of a leading Japanese biopharmaceutical firm from its founding in 1925 to the early 2000s. Starting with...
Reference IMD-2709
Copyright ©2025
Copyright owner IMD Copyright
Organization Chugai Pharmaceutical
Industry Healthcare, Pharmaceuticals
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Chugai (B): Alliance with Roche to be among the best
By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2710 ©2025
Summary
Chugai B examines the pivotal strategic alliance formed in October 2002 between Chugai Pharmaceutical and Swiss giant Roche. Facing constraints in ...
Reference IMD-2710
Copyright ©2025
Copyright owner IMD Copyright
Organization Chugai Pharmaceutical
Industry Healthcare, Pharmaceuticals
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications

Chugai (C): Navigating the next century of global innovation
By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2711 ©2025
Summary
Chugai C focuses on the company's future as it celebrates its 100th anniversary in 2025. In 2021, Chugai launched its ambitious 'TOP I 2030' growth...
Reference IMD-2711
Copyright ©2025
Copyright owner IMD Copyright
Organization Chugai Pharmaceutical
Industry Healthcare, Pharmaceuticals
Available Languages English
Contact

Research Information & Knowledge Hub for additional information on IMD publications