Adragos Pharma and Towa Partner Up to Boost Supply of Off-Patent Drugs

Under the terms of the deal, Adragos Pharma will increase manufacturing capacity to supply Towa with up to 1.5 billion tablets annually to support reliable access to essential off‑patent drugs in Japan.

Adragos Pharma Kawagoe K.K. and Towa Pharmaceutical Co., Ltd. have agreed upon a strategic collaboration in which Adragos Pharma will manufacture and supply up to 1.5 billion tablets per year to Towa from its Kawagoe plant in Japan. Supported by accelerated capital investment, shared supply‑and‑demand forecasting, and a staged expansion, increasing the site’s solid‑dose capacity from 1 to 2.5 billion tablets annually, both companies aim to ease pressure on a market that has experienced prolonged shortages of essential off‑patent medicines (1).

In recent years, Japan’s government has aggressively encouraged the shift from off‑patent brand‑name medicines to lower‑cost generics, increasing the health system’s dependence on generic supply (2). Since 2020, a series of quality‑control scandals and GMP non‑compliance issues at multiple manufacturers have triggered large‑scale production halts and recalls, exacerbating shortages across essential products. Recent analyses indicate that many generic medicines remain in short supply, with small and mid‑sized producers running numerous products on limited production lines, leaving little flexibility to absorb sudden demand spikes (3).

“Our collaboration with Towa Pharmaceutical represents an important partnership in supporting the stable supply of off-patent medicines,” commented Masanori Kurogome, Representative Director, Adragos Pharma Kawagoe K.K., in a company press release (1). “Through capital investment at our Kawagoe plant, we will further strengthen our production and quality assurance systems and, with quality as our highest priority, contribute to a more stable domestic supply of medicines.”

Adragos Pharma is a fast‑growing global CDMO specializing in small‑molecule finished dosage forms. The company offers end‑to‑end services from formulation and development through clinical and commercial manufacturing that covers sterile liquids, oral solids, semi‑solids and blow–fill‑seal technologies. Headquartered in Munich, Germany, Adragos Pharma has a network of seven manufacturing sites across Europe and Japan. Its Kawagoe facility north‑west of Tokyo combines tablet and ampoule production with high‑precision visual inspection, packaging, and one of Japan’s largest cold‑storage warehouses. 

Towa Pharmaceutical, headquartered in Osaka, is one of Japan’s leading generic drug manufacturers and a vocal proponent of a “stable supply ecosystem” for long‑term essential off‑patent medicines (4). Towa has recently entered similar strategic collaborations with partners, such as Otsuka Pharmaceutical, to secure capacity and mutual backup production for off‑patent products (5).

References

1. Adragos Pharma. Adragos Pharma Kawagoe signs Agreement with Towa Pharmaceutical for Strategic Collaboration to Support Supply of Off-Patent Medicines. Press Release, June 26, 2026.

2. Izutsu, K.; Ando, D.; et al. Generic Drug Shortage in Japan: GMP Noncompliance and Associated Quality Issues. J. Pharm. Sci. 2023, 112 (7), 1763–1771.

3. International Bar Association. Japan’s Efforts to Address Drug Supply Issues: Regulatory Reforms and Industry Collaboration. Ibanet.org (accessed July 2, 2026).

4. Towa Pharmaceutical. Strategic Collaboration between a Pharmaceutical Contract Manufacturing Company and a Generic Drug Company Toward Ensuring a Stable Supply of Off-Patent Medical Products. Press Release, April 16, 2026.

5. Otsuka. Otsuka and Towa Conclude Basic Agreement on the Succession and Manufacturing Outsourcing of Long Listed Products, Establishing a Collaborative Framework for Stable Supply. Press Release, Jan. 21, 2026.