Latest news with #MitsubishiTanabe
Japan Forward
2 days ago
- Business
- Japan Forward
Japan's Oldest Pharma Firm to Be Sold to Bain Capital
Mitsubishi Tanabe Pharma, Japan's oldest pharmaceutical company with a 350-year history, is approaching a major turning point. Its parent company, Mitsubishi Chemical Group, has announced plans to sell the firm to American investment fund Bain Capital. The deal is expected to be finalized between July and September 2025. This will be the first time the company, shaped by a series of corporate mergers, comes under foreign ownership. The decision reflects broader structural changes in the pharmaceutical industry. "We were like a close-knit family, living under the same roof for many years," said Manabu Chikumoto, President of Mitsubishi Chemical Group. "Mitsubishi Tanabe was a dutiful child, and I'm deeply grateful." Tsukimoto expressed regret about parting with the company, which has remained profitable and consistently delivered strong results. At the same time, he noted that the synergy between chemicals and pharmaceuticals had faded. He explained that the decision was based on the belief that Mitsubishi Tanabe's growth would be better supported under Bain Capital, which has a strong track record in healthcare investments. Mitsubishi Tanabe traces its origins back to 1678, during the Edo period, when its founder, Gohei Tanabeya I, opened a medicine shop in Tosabori, Osaka. The company began importing medicines in the early Meiji era. During the Taisho period, it built a modern pharmaceutical factory to strengthen domestic production. The company was incorporated in 1933 and later became known as Tanabe Seiyaku. Alongside Takeda Pharmaceutical and Shionogi, it earned a reputation as one of the "Three Greats of Doshomachi," a historic pharmaceutical district in Osaka. In 2007, Tanabe Seiyaku merged with Mitsubishi Pharma, which had roots in Yoshitomi Pharma and Green Cross. The merger formed what is now Mitsubishi Tanabe Pharma. In 2020, it became a wholly owned subsidiary of Mitsubishi Chemical Group, then known as Mitsubishi Chemical Holdings. A lantern of Tanabeya medicine shop, hung under the eaves from the Edo period to the early Showa era. It is currently displayed at the Mitsubishi Tanabe Pharma Museum in Chuo Ward, Osaka City. Mitsubishi Tanabe has long demonstrated strength in drug discovery. Notable products include IMUSERA for multiple sclerosis, CANAGLU for diabetes, and RADICAVA for ALS (amyotrophic lateral sclerosis) in North America. For the fiscal year ending March 2025, Mitsubishi Chemical Group's pharmaceutical segment (essentially Mitsubishi Tanabe) posted an operating profit of ¥65.4 billion JPY (around $455 million USD). This made a significant contribution to the group's overall earnings and reflected steady profitability. However, the patent for RADICAVA, the company's main revenue driver, is set to expire in North America in 2029. This is expected to trigger a "patent cliff," leading to a sharp decline in revenue. The need to develop new flagship drugs is becoming increasingly urgent. The outlook remains uncertain, especially after the United States postponed its approval of a potential Parkinson's treatment. "In-house drug development is the heart of a pharmaceutical company, but Mitsubishi Tanabe's pipeline doesn't look particularly strong," said Katsuhiko Ito, an analyst with prior experience at Yoshitomi Pharma. He pointed to the challenges of operating a pharmaceutical business within a chemical conglomerate. "Drug R&D demands long-term commitment and massive investment. That's something executives from a chemical background may struggle to fully embrace. The so-called 'diminishing synergy' between chemicals and pharmaceuticals was likely just lip service." Mitsubishi Tanabe is not alone. Other Japanese pharmaceutical companies, such as Sumitomo Pharma under Sumitomo Chemical, are also grappling with similar structural issues. The entire industry is going through a significant transformation. Once considered a drug discovery powerhouse, with multiple blockbuster drugs generating over $1 billion in annual sales, Japan's pharmaceutical sector is now losing ground. The domestic market is shrinking, and biopharmaceuticals are reshaping the global landscape. "Most drug categories have already been tapped out. What's left are the tough ones," said one industry insider. "It's a complete red ocean now." The key question is whether Mitsubishi Tanabe can revitalize its drug discovery efforts under new ownership. Mitsubishi Chemical is optimistic, citing Bain Capital's strong record in healthcare investments. The group expects Bain to inject capital into new drug development and provide strategic support for global expansion. Bain has expressed interest in exploring new growth opportunities by improving R&D productivity, commercialization, and pursuing strategic acquisitions. It has even hinted at a potential future IPO. Still, concerns remain. Critics warn that the deal could follow the typical private equity model — boosting the company's valuation in the short term, then selling off shares for profit. Shigeru Mishima, president of Pharma Asset Research, cautioned that PE owners sometimes slash R&D budgets to squeeze profits from existing products. "They treat the company like a disposable asset," he said. "That may not be the case this time, but for companies with weak development pipelines, the future could be grim." With soaring R&D costs and a declining domestic market, Japanese pharmaceutical firms are being pushed to pursue global strategies. Fumiyoshi Sakai, a UBS Securities analyst specializing in pharmaceuticals, noted this trend. He added that as major drugmakers struggle to rebuild or strengthen their domestic operations, Bain's approach will be closely watched across the industry. Whether Mitsubishi Tanabe can regain its edge in drug development and become globally competitive under Bain Capital will be a key test. This will be important not only for the company, but also for the future of Japan's pharmaceutical sector. ( Read the article in Japanese . ) Author: Sarasa Shimizu, The Sankei Shimbun
Yahoo
08-02-2025
- Business
- Yahoo
Bain to buy Japan's Mitsubishi Tanabe Pharma for $3.4 billion
By Anton Bridge and Kane Wu TOKYO (Reuters) -U.S. private equity firm Bain Capital has bought Mitsubishi Tanabe Pharma in a deal worth 510 billion yen ($3.4 billion), saying it was encouraged by prospects of regulatory change for Japan's drug industry. The Osaka-based firm has a pipeline of drugs relating to the central nervous system, immuno-inflammation and oncology. It has operations in more than a dozen locations across three continents outside Japan, according to its website. "We believe there are promising signs for growth and untapped opportunities in Japan's life sciences industry as government and regulators have launched several initiatives to accelerate the development and approval of innovative medicines in the Japanese market," Ricky Sun, partner at Bain Capital, said in a statement. Japanese health authorities have been looking at areas of reform, aware that many drugs developed in the United States and Europe have yet to be approved in Japan, in particular orphan and paediatric drugs. Bain is making the investment mainly via its Asia private equity fund with contributions from its global life sciences fund, said a person with knowledge of the transaction who declined to be identified as the information was not public. The seller, Mitsubishi Chemical, said it had made the sale as it was not in a position to provide the large-scale investment necessary to strengthen Mitsubishi Tanabe's research and development capacity. Proceeds from the sale will go towards investment in its core chemicals business as well as to help it reduce debt and enhance shareholder returns. Mitsubishi Tanabe saw core operating income slide 61% to 56.2 billion yen ($370 million) in the last financial year. Private equity-led buyouts are booming in Japan as companies increasingly carve out non-core businesses, under pressure from Japanese authorities to raise corporate and shareholder value. Bain and other foreign funds have ramped up acquisitions, helping propel inbound M&A in Japan to the top of the leaderboard in Asia in 2024 for the first time since 1999. ($1 = 151.8400 yen) Sign in to access your portfolio
Yahoo
08-02-2025
- Business
- Yahoo
Bain Capital buys Mitsubishi Tanabe Pharma for $3.3bn
US private equity firm Bain Capital has agreed to acquire Mitsubishi Chemical Group's pharmaceutical unit Mitsubishi Tanabe Pharma in a deal valued at approximately Y510bn ($3.3bn). The transaction follows a sale process initiated by Mitsubishi Chemical Group in September 2024, as reported by Nikkei Asia. In the 7 February announcement, the parent company said that continuous additional investments are essential for enhancing R&D capabilities and achieving further growth. It added that Bain's expertise in healthcare investment was a key reason for its selection, offering Mitsubishi Tanabe 'multifaceted support from a new partner deeply knowledgeable in the pharmaceuticals business'. The deal is expected to close in Q3 2025. In December 2024, sources told Reuters that private equity firm Blackstone was also interested in a deal for Mitsubishi Tanabe along with Bain, valuing the company at between $3bn and $3.5bn. Bain life sciences partner Ricky Sun states that Japan's regulatory environment is evolving, with government initiatives aimed at accelerating drug development and approval: 'This is an exciting opportunity to leverage our team's clinical insights and company creation support to build out a scale platform focused on long-term fundamental drug development in areas of significant unmet need to ultimately bring transformative medicines to patients in Japan and globally.' Mitsubishi Tanabe, based in Osaka, Japan, develops treatments mainly for central nervous system disorders, immuno-inflammation, and oncology. The company has been expanding its pipeline with a number of deals over the last few years. In January 2025, Mitsubishi entered a licensing agreement with Lonza's subsidiary Synaffix to advance antibody-drug conjugate (ADC) programmes. Under the agreement, Synaffix will manufacture ADC-related components while Mitsubishi will oversee the research, development, and commercialisation of the programme. Financial terms for this agreement were not disclosed. In December 2024, Mitsubishi Tanabe Pharma announced a research collaboration with Boston, Massachusetts-based Dewpoint Therapeutics, with a deal valued for up to $480m. The partnership focuses on a preclinical amyotrophic lateral sclerosis (ALS) programme. Mitsubishi also has its own ALS treatment Radicava (edaravone), which was approved by the US Food and Drug Administration (FDA) in 2017. Other deals include one with Moderna for mRNA vaccines, and Eli Lilly Japan for the distribution and marketing of its GIP/GLP-1 receptor agonist blockbuster Mounjaro (tirzepatide). "Bain Capital buys Mitsubishi Tanabe Pharma for $3.3bn" was originally created and published by Pharmaceutical Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Zawya
07-02-2025
- Business
- Zawya
Bain to buy Japan's Mitsubishi Tanabe Pharma for $3.4bln
TOKYO - U.S. private equity firm Bain Capital has bought Mitsubishi Tanabe Pharma in a deal worth 510 billion yen ($3.4 billion), saying it was encouraged by prospects of regulatory change for Japan's drug industry. The Osaka-based firm has a pipeline of drugs relating to the central nervous system, immuno-inflammation and oncology. It has operations in more than a dozen locations across three continents outside Japan, according to its website. "We believe there are promising signs for growth and untapped opportunities in Japan's life sciences industry as government and regulators have launched several initiatives to accelerate the development and approval of innovative medicines in the Japanese market," Ricky Sun, partner at Bain Capital, said in a statement. Japanese health authorities have been looking at areas of reform, aware that many drugs developed in the United States and Europe have yet to be approved in Japan, in particular orphan and paediatric drugs. Bain is making the investment mainly via its Asia private equity fund with contributions from its global life sciences fund, said a person with knowledge of the transaction who declined to be identified as the information was not public. The seller, Mitsubishi Chemical, said it had made the sale as it was not in a position to provide the large-scale investment necessary to strengthen Mitsubishi Tanabe's research and development capacity. Proceeds from the sale will go towards investment in its core chemicals business as well as to help it reduce debt and enhance shareholder returns. Mitsubishi Tanabe saw core operating income slide 61% to 56.2 billion yen ($370 million) in the last financial year. Private equity-led buyouts are booming in Japan as companies increasingly carve out non-core businesses, under pressure from Japanese authorities to raise corporate and shareholder value. Bain and other foreign funds have ramped up acquisitions, helping propel inbound M&A in Japan to the top of the leaderboard in Asia in 2024 for the first time since 1999. ($1 = 151.8400 yen)
