Bain Capital has agreed to acquire Mitsubishi Tanabe Pharma Corporation (MTPC), a Osaka, Japan-based bio/pharmaceutical company, and its subsidiaries in a carve-out transaction from MTPC’s parent company, Mitsubishi Chemical Group (MCG), for $3.3 billion. The deal also includes MCG’s additional pharma subsidiaries, Medicago and Alpha Therapeutic. 

MCG’s decision to exit its pharmaceutical business is part of the company’s larger strategic plan, dubbed “KAITEKI Vision 35,” a long-term growth strategy through 2050, as well as its near-term management plan through 2029, aimed at improving profitability. MCG is composed of three business areas: chemicals as well as pharmaceuticals and industrial gases. At the time of the release of that plan last November (November 2024), the company cited a need for change in its pharma business to improve profit margins as well as flat sales in its core chemicals business.  

In announcing the pending sale of its pharmaceutical business, the company cited the inherent uncertainty in product development and related investment required in research and development. “..[W]ith the advancement of therapeutic drugs and diversification of modalities, the disease areas with unmet needs are gradually shrinking,” said MCG, in a February 7, 2025, press statement. “Moreover, given that possibility of success of drug discovery is not high, continuous additional investments are essential for enhancing MTPC’s research and development capabilities and achieving further growth.” 

MTPC focuses on several priority therapeutic areas, including immunology & inflammation, vaccines, central nervous system (CNS), and diabetes and metabolic disease.   

MCG says plans to use the proceeds from the sale to improve its financial base by reducing debt, to enhance shareholder returns, and to advance its growth strategy centered on its chemicals business 

The transaction is expected to close in the third quarter of 2025 and is subject to customary closing conditions, regulatory clearance and shareholder approvals. 

Source: Bain Capital and Mitsubishi Tanabe Pharma Corporation