Mitsubishi Chemical Group is exploring the potential sale of its subsidiary, Mitsubishi Tanabe Pharma, to generate funds for its ailing chemical business. The move reflects the growing burden of high research and development costs in the pharmaceutical sector, which has prompted the company to retain an advisory firm and approach foreign investors about a possible deal. Negotiations remain in the early stages, and Mitsubishi may hold off if offers fall short of expectations.
Mitsubishi Tanabe, known for developing immunotherapy and central nervous system drugs, contributed significantly to the group’s earnings last year. However, with the U.S. exclusivity for its key drug Radicava expiring in 2029, Mitsubishi Chemical faces the costly challenge of maintaining a strong pharmaceutical pipeline.
This potential sale aligns with Mitsubishi Chemical’s broader strategy of refocusing on its core chemical business, which includes high-performance materials and petrochemicals. The company is also weighing investments in a new U.S. plant and environmental initiatives, adding further pressure on its resources. The decision mirrors industry trends, with chemical firms like Sumitomo Chemical also reevaluating the role of pharmaceuticals in their portfolios amidst rising costs and market volatility.
