120.18 /$ (11 a.m.)

Fujifilm Co. said Monday it will buy a U.S.-based developer of induced pluripotent stem (iPS) cells to strengthen its position in the field of regenerative medicine field, especially new drug development.

Fujifilm said the firm has agreed with Cellular Dynamics International Inc. (CDI) to buy all of its stock for $307 million, or about 36 billion, through a takeover bid.

We are taking a significant and strong step to expand our regenerative medicine business with this acquisition, Fujifilm Chairman Shigetaka Komori said at a news conference in Tokyo.

We hope to become the worlds No. 1 firm in the field of regenerative medicine, he said.

Expectations toward regenerating human tissues from stem cells have been rising in recent years with technological developments, including the use of iPS cells, which are capable of turning into any kind of tissue in the body, and 3-D bioprinters.

Fujifilm sees great potential in new drug development, as the regenerated human tissue can be used to screen new drugs and is expected to someday replace animal testing.

Fujifilm also makes a biomaterial called recombinant peptide (RCP), which is a synthetic protein, that is used to regenerate human tissue by mixing with human stem cells.

Whats more, the firm has Japan Tissue Engineering Co., which provides tissue-engineered medical products like autologous cultured cartilage within its group, so acquiring CDI will bring synergies to the group, according to Fujifilm executive Yuzo Toda.

CDI, based in Wisconsin, researches and manufactures human tissue cells derived from iPS cells, such as hepatocytes and cardiomyocytes, for pharmaceutical makers.

The firm was founded in 2004 and went public on the Nasdaq stock market in 2013 and currently has about 150 employees. It posted $16.6 million in sales in 2014 and an operating loss of $29.2 million.

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120.18 /$ (11 a.m.)