Sumitomo Chemical restructures Asia pharma business in landmark deal

Sumitomo Chemical (TSE: 4005) announced a strategic restructuring of its Asian pharmaceutical business, involving a company split and a landmark share transfer agreement with Marubeni Global Pharma. Under the plan, Sumitomo Chemical subsidiary, Sumitomo Pharma, will transfer its Asian operations to a newly formed, wholly-owned subsidiary through a simplified absorption-type split. Following this, 60% of the new company's issued shares will be sold to Marubeni Global Pharma. Sumitomo Chemical expects to receive approximately JPY 45 billion for the initial share transfer. A further JPY 27 billion is anticipated from a planned future transfer of the remaining 40% stake to Marubeni Global Pharma, per the shareholder agreement. The transaction is expected to generate a gain in Sumitomo Chemical’s fiscal year ending March 31, 2026. The company intends to utilize proceeds from the deal to bolster its financial position and concentrate resources on key growth areas. Sumitomo Chemical will continue supplying products to the new company to ensure uninterrupted healthcare contributions across Asia. The deal remains subject to regulatory approvals and customary closing conditions.