Mitsubishi Chemical cuts its pharmaceutical business due to the downturn in its main business and the high cost of pharmaceutical R&D

Japanese chemical manufacturer Mitsubishi Chemical is considering selling its subsidiary Mitsubishi Tanabe Pharma, according to the Nikkei Shimbun. It is reported that Mitsubishi Chemical has hired a financial advisor to find potential buyers, including foreign investment funds, but the source of the news was not disclosed. The company hopes to sell its pharmaceutical division for more than 500 billion yen (US$3.5 billion), adding that the negotiations are in the early stages and the company may decide not to sell the division.

In the early trading of September 9, Mitsubishi Chemical shares rose 2.2% in Tokyo trading, while the Topix index fell 2.9%.

Mitsubishi Chemical said in a statement on September 9 that there is no statement that the negotiations are in the early stages. The company is reviewing its entire business portfolio, including pharmaceuticals, and considering all options, including divestment.

Against the backdrop of the downturn in the chemical business, which is its main business, Mitsubishi Chemical is promoting the restructuring of its entire business in order to strengthen profitability. Against the backdrop of the need to ensure growth investment, Mitsubishi Chemical will review the positioning of its pharmaceutical business, which has huge R&D investment.

Mitsubishi Chemical, which has a wide range of businesses from petrochemicals to pharmaceuticals to industrial gases, is seeking to boost profits, especially in its chemicals segment. Manabu Chikumoto, Mitsubishi Chemical's president and CEO who was appointed earlier this year, said at an earnings news conference in May that the company would consider all options as it reviews its portfolio.