Kobayashi Pharmaceutical president, chairman resign amid scandal

by / ⠀News / July 24, 2024
Pharmaceutical Scandal

Kobayashi Pharmaceutical, a well-known drugmaker in Japan, is facing a major scandal. Its president and chairman have resigned amid an investigation into 80 deaths potentially linked to the company’s beni kōji fermented rice products. The products, marketed as supplements for high cholesterol and blood pressure, were recalled in March after customers reported kidney problems, changes in urine color, limb swelling, and fatigue. The company began an investigation in January when a doctor raised concerns about health issues connected to the products.

Kobayashi Pharmaceutical later identified a potentially toxic acid produced by mold at one of its factories as the cause of the problems.

Kobayashi executives step down amid crisis

President Akihiro Kobayashi and Chairman Kazumasa Kobayashi, both founding family members, stepped down to “clarify executive responsibility.” Akihiro Kobayashi stated his intention to take responsibility for any harm done to customers and that he would remain with the company to handle compensation arrangements.

An external report criticized the company’s leadership for reacting too slowly to reports of deadly complications. The Japanese government also expressed disappointment, calling Kobayashi’s delay in reporting the incidents “extremely regrettable.”

Satoshi Yamane, the company’s head of sustainability policy, will assume the role of president starting August 8. This marks the first time someone outside the founding family will lead the 138-year-old company. The scandal has raised significant concerns about consumer safety and corporate responsibility in Japan, a country known for its high consumer protection standards.

See also  Strategies for efficient 2024 tax management

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

x

Get Funded Faster!

Proven Pitch Deck

Signup for our newsletter to get access to our proven pitch deck template.