Famous for Salonpas, the century-old Japanese company is set to be delisted.

(Kyushu, Jan 7) Japanese media reported that Hisamitsu Pharmaceutical, the maker of the well-known pain-relief patch Salonpas, is set to be taken private by members of its founding family, with a formal buyout process now underway. The transaction is estimated to be worth up to ¥450 billion, and is said to be backed by bank financing.

Sources said the CEO, Kazuhide Nakatomi, who is part of the founding family, is seeking to acquire all outstanding shares. After the company released its announcement, the stock was briefly halted, then resumed trading amid expectations of a takeover premium. The share price surged 15.5% to close at ¥5,200.

The reported push toward privatization is attributed to three main factors: increasing governance pressure, the impact of drug-pricing policies, and the need for long-term investment.

First, reforms and tighter oversight at the Tokyo Stock Exchange have raised expectations for corporate governance and valuation discipline, contributing to a broader rise in management buyouts and delistings. Second, Japan’s government has been promoting lower-cost generic drugs and pushing for price reductions to contain healthcare costs in an aging society, weighing on pharmaceutical earnings. Hisamitsu previously reported that operating profit for a period from March to August fell 9.7% to ¥8.1 billion, citing policy headwinds and weaker domestic sales of Salonpas.

Third, the company is accelerating overseas expansion and longer-horizon growth plans. It has indicated plans to invest more than ¥50 billion to expand Salonpas production capacity, and ¥150 billion or more for R&D and strategic investments. Going private would allow the company to pursue these initiatives with less pressure from short-term market expectations.

The report also notes that investors often compare the move with a competitor’s delisting in 2024, which was framed as a way to focus on mid- to long-term strategy rather than short-term profits and shareholder returns.

Founded in 1847, Hisamitsu has a history of more than 170 years. Salonpas remains its flagship product, and in 2008 it received U.S. regulatory clearance as an over-the-counter medicated patch.