Marubeni invests US$300M for 60% stake in Sumitomo Pharma’s Asian business

JAPAN—Marubeni Corporation, a major Japanese trading house, has entered into a share purchase agreement to acquire a substantial portion of Sumitomo Pharma’s Asian operations.

This deal, valued at approximately 72 billion yen (US$480 million), marks a strategic expansion for Marubeni into the rapidly growing Asian pharmaceutical market.

Marubeni is specifically investing 45 billion yen (US$300 million) to secure a 60% stake in the newly formed company, which will serve as Marubeni’s pharmaceutical strategic platform under the tentative name Marubeni Pharmaceuticals Corporation.

This acquisition is part of a broader trend in Asia’s pharmaceutical reshuffling, where companies are repositioning themselves to capitalize on the region’s growing healthcare needs.

The Asian market presents substantial growth potential, driven by factors including population growth, aging demographics, and economic development.

Marubeni aims to leverage this opportunity by expanding its healthcare portfolio, which already includes pharmaceutical distribution businesses in China, the Middle East, and Africa.

The company plans to grow its healthcare-related sales to over 100 billion yen by fiscal 2029.

Sumitomo Pharma’s Asian business, which encompasses operations in China, Taiwan, Hong Kong, and Southeast Asia, generated estimated revenues of 45.8 billion yen (US$305 million) in 2024.

This established presence in key markets will provide Marubeni with a solid foundation to further expand its reach.

Sumitomo’s successful history in Southeast Asia and China will prove essential as Marubeni aims to broaden its global presence.

This expansion will enhance Marubeni’s existing partnerships with companies such as Fosun Pharmaceuticals in China, Lunatus in the Middle East, and Phillips Pharma in Sub-Saharan Africa.

For Sumitomo Pharma, this divestment is part of a broader strategy to strengthen its financial foundation and achieve renewed growth.

The company has faced challenges in recent years, including significant layoffs in its U.S. operations following the loss of exclusivity for its antipsychotic drug Latuda.

Despite these challenges, Sumitomo remains optimistic about transforming fiscal 2024 into a turning point for growth.

The company’s North American business continues to be supported by key products such as Gemtesa for overactive bladder, Orgovyx for prostate cancer, and Myfembree for uterine fibroids and endometriosis.

 These products are expected to continue contributing to Sumitomo’s overall revenue following the Asia selloff.

Furthermore, Sumitomo has been proactive in protecting its intellectual property, recently filing lawsuits against Apotex and Intas Pharmaceuticals to safeguard its drug Gemtesa from generic competition.

This proactive approach underscores the company’s commitment to maintaining its market position in the face of a competitive landscape.

The year 2025 has seen significant activity in pharmaceutical mergers and acquisitions in Asia.

Earlier this year, AstraZeneca acquired FibroGen’s China business for US$160 million, focusing on regional rights to the oral anemia drug roxadustat.

Additionally, Bain Capital acquired Mitsubishi Tanabe Pharma for 510 billion Japanese yen (US$3.3 billion), establishing an independent pharmaceutical company from its parent, the Mitsubishi Chemical Group.

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