Takara Holdings Implements Cost-Cut Measures Amid Structural Reforms

TOKYO, Jul 21 (Pulse News Wire) – Takara Holdings Inc. (2531.T) announced progress on cost-cut measures initiated by its subsidiary, Takara Bio Inc., aimed at improving profitability.

As part of personnel optimization, the company launched a voluntary retirement program targeting approximately 120 employees, with applications accepted from June 15 to July 17, 2026. Expected to conclude on October 31, 2026, the initiative includes enhanced severance packages and reemployment support. Total additional costs, estimated at ¥1.706 billion (initially planned at ¥1.440 billion) for fiscal 2027, will be recorded as extraordinary losses, with ¥1.651 billion anticipated in the first quarter. Annual savings from reduced labor expenses amount to ¥1.105 billion (originally projected at ¥720 million), increasing to ¥576 million in fiscal 2027 (previously forecasted at ¥300 million). Additionally, Takara Bio agreed to transfer GMP cell processing operations to Sumitomo Chemical Co., Ltd., Sumitomo Pharma Co., Ltd., and their joint venture, S-RACMO Co., Ltd., through a basic agreement signed. This move aligns with efforts to streamline focus areas within the CDMO business, concentrating on nucleic acid/polymer, protein/enzyme, and viral vector projects.

Final contract negotiations are scheduled for completion by October 31, 2026, pending fulfillment of contractual conditions. Furthermore, the company halted its self-developed gene therapy clinical project TBI1,301. Discussions with Sumitomo Chemical Group regarding potential succession continue. Management reforms also included reducing board membership from nine to three members, along with voluntary salary reductions and cuts for executives ranging from 30% to 20% per month. These adjustments span from April 2026 to June 2027. Preparations for closing the Swedish site are underway without immediate decisions to disclose.