On October 3, 2005, Mitsubishi Pharma Corporation and Mitsubishi Chemical Corporation established a joint holding company, Mitsubishi Chemical Holdings Corporation, in a stock-for-stock exchange operation whereby both Mitsubishi Pharma and Mitsubishi Chemical became wholly owned subsidiaries of Mitsubishi Chemical Holdings without stock market listing.
Progressive government measures to curtail medical treatment expenditure, the competitive onslaught of overseas-based pharmaceutical company, and other pressures mean that business conditions in the industry are predicted to become increasingly challenging in the future. Given these conditions, Mitsubishi Pharma has long considered the strengthening of research and development operations and the restructuring and expansion of overseas bases to be among its most important management tasks, to be approached through strategies which will include the formation of alliances.
We believe that the establishment of the joint holding company has placed us in a position to respond flexibly to alliances offering the potential to accelerate our growth strategies, which are designed to propel our development as a global research-driven pharmaceutical company, while at the same time allowing us to retain our operational independence as a pharmaceutical company. We also believe that closer ties with other companies in the healthcare segment of the Mitsubishi Chemical Group will allow us to strengthen our drug development infrastructure and will open the way to the creation of new business models.
Now up and running, Mitsubishi Chemical Holdings serves as a “pure” holding company undertaking portfolio management functions for Mitsubishi Pharma, Mitsubishi Chemical, and around 370 other Group companies based on the corporate philosophy of “Good Chemistry for Tomorrow.” As such, the new company works to reinforce pharmaceutical operations, add depth to Group management, build a portfolio that will ensure stable earnings, and energetically pursues a range of other strategies for Group growth and advancement.