Decision to close the Kobe Research Institute and transfer and consolidate the research functions
TRANSGENIC GROUP INC. (the Kobe Research Institute owned by the company)
TRANSGENIC Kobe Research Institute (7-1-14 Minamimachi, Port Island, Chuo-ku, Kobe). The functions will be transferred to the Iwata Research Institute and Kurume Modality Analysis Center.
Changes in the business environment resulting from sluggish life sciences research markets in Japan and overseas, declining public research funding in Japan's basic research sector, and rising prices for laboratory animals, among other factors
Expenses expected to arise from the transfer are expected to be recorded as a business restructuring loss (the amount is currently under review). Fixed costs related to research institute equipment and facility maintenance are expected to decrease by approximately ¥100 million per year.
Fiscal year ending March 2026
The impact of this matter on our results is currently under review. We will promptly disclose any matters that should be disclosed.
Company response
Closure of the TRANSGENIC Kobe Research Institute (scheduled for around December 2026)
We will transfer and consolidate the genomics business at Kurume Modality Analysis Center and transition to a business model centered on consulting services for high-value-added studies for pharmaceutical companies and drug discovery startups, together with the supply of model mice. The large-animal pharmacology business will be transferred and consolidated at the Iwata Research Institute, where we will work to improve facility utilization, reduce fixed costs, improve profitability and enhance management efficiency.
We will promptly disclose any matters that should be disclosed in the future.
| Item | Details |
|---|---|
| Event name | Decision to close the Kobe Research Institute and transfer and consolidate the research functions |
| Date of occurrence | 25 March 2026 (the date on which the Board of Directors resolved to close the facility) |
| Subject Entity | TRANSGENIC GROUP INC. (the Kobe Research Institute owned by the company) |
| Target Locations / Products | TRANSGENIC Kobe Research Institute (7-1-14 Minamimachi, Port Island, Chuo-ku, Kobe). The functions will be transferred to the Iwata Research Institute and Kurume Modality Analysis Center. |
| Cause | Changes in the business environment resulting from sluggish life sciences research markets in Japan and overseas, declining public research funding in Japan's basic research sector, and rising prices for laboratory animals, among other factors |
| Amount of Impact on Business Performance | Expenses expected to arise from the transfer are expected to be recorded as a business restructuring loss (the amount is currently under review). Fixed costs related to research institute equipment and facility maintenance are expected to decrease by approximately ¥100 million per year. |
| Accounting period in which recognized | Fiscal year ending March 2026 |
| Impact on Earnings Forecast | The impact of this matter on our results is currently under review. We will promptly disclose any matters that should be disclosed. |
| Suspended operations | Closure of the TRANSGENIC Kobe Research Institute (scheduled for around December 2026) |
| Outlook | We will transfer and consolidate the genomics business at Kurume Modality Analysis Center and transition to a business model centered on consulting services for high-value-added studies for pharmaceutical companies and drug discovery startups, together with the supply of model mice. The large-animal pharmacology business will be transferred and consolidated at the Iwata Research Institute, where we will work to improve facility utilization, reduce fixed costs, improve profitability and enhance management efficiency. |
| Planned follow-up disclosure | We will promptly disclose any matters that should be disclosed in the future. |
Items this document does not state (14)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.As the business environment has changed due to the sluggish life sciences research markets in Japan and overseas, declining public research funding in Japan's basic research sector, and rising prices for laboratory animals, among other factors, we determined that it is necessary to further review our business structure to achieve sustainable growth, improve profitability and enhance capital efficiency.