News Releases

May 15, 2000

Sumitomo Pharmaceuticals' Bulk Pharmaceutical Activities to be Transferred to Sumika Fine Chemicals Co., Ltd.

Sumitomo Pharmaceuticals Co., Ltd. has announced that effective June 1, it will transfer selected business activities in bulk pharmaceuticals, and intermediates and food additives, to Sumika Fine Chemicals, a member of the Sumitomo Chemical Group. The company will continue to market some bulk products that are closely tied to its existing pharmaceutical business activities.

Sumitomo Pharmaceuticals has to date handled bulk pharmaceuticals and intermediates in its Bulk and Intermediates Department, Specialty Products Sales Division. However, recent drastic changes in the pharmacoregulatory environment, including greater restraint on healthcare expenditure, the launch of a new Good Clinical Practice, and the enforcement of the Good Manufacturing Practice for Investigational Products, have necessitated a restructuring of the company, which has no dedicated research or manufacturing functions for bulk pharmaceuticals.

The maintenance of independent investigatory, research, manufacturing, and overseas sales functions was regarded as essential to sustaining and developing the business activities of the Bulk and Intermediates Department.

Sumika Fine Chemicals has its own research, manufacturing, and quality assurance divisions, and an integrated business framework with a global outlook. The company mainly operates in the pharmaceutical sector, including the manufacture of bulk pharmaceuticals and intermediates, and the precision chemicals sector, including such products as polymer additives, photographic chemicals, and information-recording materials. Discussions between Sumitomo Pharmaceuticals and Sumika Fine Chemicals have resulted in selected bulk pharmaceutical activities being transferred to the latter, along with Sumitomo's intermediates and food additives business.

It is to be anticipated that the transfer will enable these business activities to be further developed within Sumika Fine Chemicals.