Sumitomo Pharma to split Asian business, partner with Marubeni

Sumitomo Pharma (TSE:4506) announced a strategic realignment of its Asian business, effective April 1, 2025, through a company split and partnership with Marubeni Global Pharma Corporation. The agreement involves the creation of a new, wholly-owned subsidiary to house Sumitomo Pharma's existing Asian operations, currently managed through Sumitomo Pharma (China) Co., Ltd. and Sumitomo Pharma Asia Pacific Pte. Ltd. Following the split, 60% of the new entity’s shares will be transferred to Marubeni Global Pharma. Sumitomo Pharma will receive approximately JPY45 billion from the initial share transfer, and is slated to receive an additional JPY27 billion upon the transfer of the remaining 40% of shares to Marubeni Global Pharma, scheduled for April 2029 or later. The company intends to use the proceeds to fortify its financial foundation and concentrate its management resources on key growth sectors, while remaining committed to supplying products through the new company in Asia. Sumitomo Pharma expects to record a gain on the share transfer in the fiscal year ending March 2026, and is still in the process of determining accounting treatment.