Hisamitsu Pharmaceutical is considering a takeover bid to privatize the Japanese maker of pain-relief patches in a deal that could be worth around ?450 billion ($2.9 billion), people familiar with the matter said.
An entity controlled by CEO Kazuhide Nakatomi, a member of the company¡¯s founding family, is seeking to acquire all outstanding shares of the company, which has a market value of ?338 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 plans to make an announcement Tuesday, according to a company statement.
Trading in Hisamitsu¡¯s shares was suspended following the report. As trading resumed in the afternoon, the stock looked set to surge toward its daily upper limit.
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 high 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 ?8.1 billion for the six month period that ended in 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 ?50 billion to expand Salonpas supply and more than ?150 billion in research and strategic investments, the drugmaker said in October.
Domestic rival Taisho Pharmaceutical Holdings¡¯ management privatized the company in 2024, citing the need to focus on mid¡ª to long-term strategies rather than short-term profits and shareholder returns.
Hisamitsu, which traces its origins to 1847 in Saga Prefecture in southwestern Japan, develops and sells prescription and drugstore products. Salonpas became the first-ever topical pain-relief patch approved by the U.S. Food and Drug Administration in 2008.
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