Chugai board confirm company split

The board of Chugai Pharmaceutical has confirmed the planned company split that will make the production business a separate firm.

The split will be implemented on May 1st when Chugai Techno Business, to be renamed Chugai Pharma Manufacturing, will become a subsidiary of Chugai and take on parts of the business relating to the manufacture of pharmaceutical products.

The firm outlined the objectives of the split.

In a statement Chugai said: “In the international market of pharmaceutical products, global competition concerning the research and development of new drugs, etc., is fierce, and the business environment is expected to be increasingly more difficult in the future.

“In order to adapt to such changing environment, Chugai has adopted the mid-term business plan entitled ‘Sunrise 2010’ and has been making efforts to implement it.

“The objectives of the company split are to improve the manufacturing technology and cost efficiency of the Chugai group and to maximize the value of the Chugai group.”

The new company is expected to have sales around 300 billion yen (?1.4 billion) and employ around 1,000 people in Japan making drugs including Epogin, Neutrogin and Tamiflu.

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