As of 1 October, Tanabe will spin off its Onoda Plant, located in Yamaguchi Prefecture, into a separate company, subject to approval by shareholders at a meeting in June. The facility has been the core of Tanabe's manufacturing capabilities, and its spin-out re-focuses the company as a marketing and R&D business.

Upcoming changes in the regulatory environment in Japan have made it possible for companies to outsource more of their production. The new Pharmaceutical Affairs law, which comes through in April, will for the first time allow Japanese companies to subcontract the complete manufacturing of their products. Previously, by law some elements of manufacturing had to be conducted in-house.

The name and additionall detals of the structure and staffing of the new company have yet to be announced. Through this reorganization, Tanabe aims to bolster its cost competitiveness while improving its production technologies.

" The new production company will be established as a drug manufacturing company that can make its own business decisions quickly," sad Tanabe in a statement.