(Jan 6): Hisamitsu Pharmaceutical Co’s management is considering a takeover bid to privatise the Japanese maker of pain-relief patches in a deal that could be worth around JPY450 billion (US$2.9 billion or $3.7 billion), people 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 JPY338 billion, said the people, who asked not to be identified because the talks are private. Banks will provide financing for the deal, and the buyout proposal is likely to be announced soon, they added.
Hisamitsu confirmed the report, saying it is considering going private and planned to make an announcement on Tuesday, according to a company statement. Shares surged by the daily limit, closing the trading day at 15.6% higher — their biggest gain in more than three decades.
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 operating profit fell 9.7% to JPY8.1 billion 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 JPY50 billion to expand Salonpas supply and more than JPY150 billion in research and strategic investments, the drugmaker said in October.
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Domestic rival Taisho Pharmaceutical Holdings Co’s 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 the 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.
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