Withdrawal from nutritional products business
Asahi Kasei Pharma Corp.
Asahi Kasei Pharma has reached a decision to withdraw from its nutritional products business.
Asahi Kasei Pharma’s nutritional products business began in 1983 with the launch of a tube feeding powder formula, followed by various enriched liquid diets. However, there has been a decline in the profitability of the business since fiscal 2011, due to drastic changes in the business environment such as slowing market growth and increasingly severe competition. Despite concerted efforts to achieve a sustainable trajectory for the business, the operating environment only deteriorated further. With little prospect for gaining improved profitability, it was determined that continuation of the business had become impractical.
Asahi Kasei Pharma is scheduled to discontinue the sale of nutritional products at the end of March 2016. Deliberations with clients and suppliers will advance so that any disruption to their operations may be minimized.
While expenses related to the discontinuation of operation will be incurred, the effect on financial performance will not be significant.
Outline of nutritional products business
- Net sales
- ¥3 billion (fiscal 2013)
- Major products
- Acure™ and L-series enriched liquid diets, Egao Club™ nutritional drinks and gelatins