It's now official: the Japanese drug industry is succumbing to consolidation. The only question is whether the consolidators will be Western companies or the Japanese themselves. The latest and least unexpected transaction: Merck & Co. Inc. 's takeover of the remaining 49% of Banyu Pharmaceutical Co. Ltd. it didn't already own, in a $1.52 billion tender offer [See Deal].
Merck-Banyu follows several other recent pharmaceutical consolidations in Japan, some with Japanese buyers, some with Westerners. But the tide is...