Santen Pharmaceutical announced that its consolidated subsidiary Chongqing Santen Kerui Pharmaceutical Co., Ltd. would file for bankruptcy with a Chinese court. Total liabilities are approximately ¥3.3 billion, with most of the debt consisting of borrowings from Santen Pharmaceutical and its Chinese subsidiary. Bankruptcy proceedings are expected to proceed before the local court.
Santen Pharmaceutical announced that its consolidated subsidiary 重慶参天科瑞製薬有限公司 would file for bankruptcy under China's Company Law and Enterprise Bankruptcy Law. Total liabilities are approximately CNY143 million (approximately ¥3.3 billion), of which approximately CNY100 million (approximately ¥2.3 billion) consists of borrowings from Santen Pharmaceutical and Santen Pharmaceutical (China) Co., Ltd.
The company was established as a joint venture in Chongqing in 2016, but became unable to continue its business strategy amid factors including reforms to China's healthcare system and resolved to liquidate in October 2024. It subsequently proceeded with liquidation, aiming to sell its assets and repay all debts, but with no clear prospects, it moved to file for bankruptcy. If the local court accepts the petition, bankruptcy adjudication, disposal of assets and distributions to creditors are expected to proceed.
As for the financial impact on Santen Pharmaceutical, the loans to 重慶参天科瑞製薬有限公司 have already been fully covered by an allowance for doubtful accounts, so no additional loss is expected. The impact of this matter on Santen Pharmaceutical's consolidated results for fiscal 2026 is considered immaterial.