Partial Divestiture of Pharmaceutical Business Announced

Research evidence excerpt

Partial Divestiture of Pharmaceutical Business Announced

Update

June 17, 2026 11:17 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MTeijin (3401) | Japan Takato Watabe

Equity Analyst

Partial Divestiture of Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

Ryoichi.Watanabe@morganstanleymufg.com +81 3 6836-8929

Pharmaceutical Business Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

Announced Kano Fujita

Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

Already reflected in F3/27 company guidance: On June 17, Teijin announced that its

pharmaceutical subsidiaries Teijin Pharma and LTL Pharma have agreed to transfer

marketing approvals to LTL Pharma and transfer sales operations for the domestic

business of 7 prescription pharmaceutical products for which Teijin Pharma holds

marketing approvals, as well as the overseas business of the hyperuricemia

treatment drug Feburic. The company has adopted a policy of concentrating Teijin (3401.T, 3401 JT)

management resources in the rare disease and intractable disease areas within its Fine Chemicals | Japan

pharmaceutical business, and had been considering transferring businesses to a best Stock Rating Underweight

Industry View In-Line

owner; this transaction represents the realization of that strategy. Teijin also Price target ¥1,250

recorded impairment losses related to its pharmaceutical business in the last fiscal Shr price, close (Jun 17, 2026) ¥1,648

Mkt cap, curr, basic (bn) ¥317.6

year. The gain/loss from this divestiture appears to be limited. In its F3/27 company Avg daily trading value (bn) ¥1.5

plan, Teijin has already factored in a ¥7bn negative impact on earnings from the

downsizing of its pharmaceutical business (net of positive effects from the