TOKYO, Mar 25 (Pulse News Wire) – Transgenic Group Inc. (2342.T) announced today that its board of directors has decided to close the Kobe Research Institute due to changes in the industry environment.
The closure is expected to take place around December March 25, 2026. The decision follows recent declines in domestic and international research funding, particularly in basic science areas, which have intensified since the pandemic. Additionally, rising costs of experimental animals have strained pharmaceutical companies and biotech startups. Despite previous efforts to reduce fixed costs through organizational restructuring, the company believes further adjustments are necessary for sustainable growth and improved capital efficiency. Key operations from the Kobe Institute will be transferred to other facilities.
Genomics services will move to Kurume Modality Analysis Center, shifting focus towards high-value consulting and model mouse supply for pharmaceutical firms and biotech ventures. Large animal drug testing activities will relocate to Iwata Institute, aiming to enhance facility utilization rates and cut expenses. The company anticipates annual savings of approximately ¥100 million in fixed costs related to equipment and maintenance. A reorganization expense of up to 2026 fiscal year is expected due to the transition. Further updates will be disclosed as needed.
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