The Japanese government has been promoting cheaper generic medicines and pushing drugmakers to cut prices as its population ages
[TOKYO] Hisamitsu Pharmaceutical’s management is considering a takeover bid to privatise the Japanese maker of pain-relief patches in a deal that could be worth around 450 billion yen (S$3.7 billion), sources familiar with the matter said.
An entity owned by chief executive officer Kazuhide Nakatomi, a member of the company’s founding family, is seeking to buy all of the shares of the company, which has a market value of 338 billion yen, said the sources, who asked not to be identified because the talks are private. Banks will provide financing to help fund the deal, they said.
The buyout proposal is set to be announced soon, they added. A representative for Hisamitsu was not immediately able to comment. Trading in Hisamitsu’s shares were suspended following the report and were set to rise as of late morning on Tuesday (Jan 6).
Hisamitsu, known for its Salonpas pain-relief patches, joins a growing list of Japanese companies exiting the public market to shield themselves from growing regulatory and investor pressure to lift valuations and implement more oversight.
As a result, the number of Japanese firms traded on the Tokyo Stock Exchange is falling for the first time in more than a decade as buyouts and restructuring-related delisting reached a record last year.
At the same time, the Japanese government has been promoting cheaper generic medicines and pushing drugmakers to cut prices as its population ages. In October, Hisamitsu said that operating profit fell 9.7 per cent to 8.1 billion yen for the six months ended August 2025, hurt by the measures, and also weaker domestic sales of Salonpas.
To promote growth, Hisamitsu is stepping up overseas expansion as it faces intensifying competition at home. In the coming years, Hisamitsu plans to invest more than 50 billion yen to expand Salonpas supply and more than 150 billion yen in research and strategic investments, the drugmaker said in October.
Domestic rival Taisho Pharmaceutical Holdings’ management privatised the company in 2024, citing the need to focus on mid- to long-term strategies rather than short-term profits and shareholder returns.
Hisamitsu, which traces its origins to 1847 in Saga prefecture in southwestern Japan, develops and sells prescription and drugstore products. Salonpas became the first-ever topical pain-relief patch approved by the US Food and Drug Administration in 2008. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
