Mitsubishi Chemical Group is moving closer to selling its pharmaceutical unit Mitsubishi Tanabe Pharma to Bain Capital, offering the U.S. private equity firm first-refusal rights in a deal valued around 500 billion yen ($3.2 billion).
The potential divestment reflects Mitsubishi Chemical’s strategy to redirect resources toward its core chemical operations, stepping back from pharmaceutical development that demands heavy capital investment. The move follows the company’s 2020 buyout of remaining Mitsubishi Tanabe shares for roughly the same amount.
Mitsubishi Tanabe, which generates nearly 30% of the group’s core operating profit at 56.2 billion yen, has built its reputation on Radicava, a treatment for amyotrophic lateral sclerosis that has gained traction in North America.
For Bain Capital, which manages over 60 life sciences investments, acquiring Mitsubishi Tanabe would mark its entry into Japan’s pharmaceutical sector. Industry sources say Bain aims to leverage the Japanese firm’s development capabilities and distribution network while pursuing acquisitions and introducing new drugs to the Japanese market.
The deal emerges as pharmaceutical companies worldwide grapple with escalating development costs, spurring a wave of consolidation across the industry.
