Chairman of Japanese Pharmaceutical Company Steps Down Amid Link Between Dietary Supplement and 80 Fatalities

The CEO and co-founder of a prominent Japanese dietary supplement firm is stepping down amidst the investigation into as many as 80 fatalities potentially associated with their cholesterol-lowering tablets.

Kobayashi Pharmaceutical, known widely across Japan, finds itself at the heart of public health concerns connected to its over-the-counter pills containing red yeast rice—a product fermented using a specific mold culture.

A recent report by external legal advisors released on Tuesday criticised Kobayashi Pharmaceutical for not prioritizing customer safety, stating the company showed "insufficient sense of urgency". The report stated that reports of kidney issues from medical professionals started appearing as early as mid-Janurom and February.

Red yeast rice, also known as "beni koji", has been incorporated in foods, alcoholic beverages, and traditional medicines for many centuries throughout East Asia. Studies highlight its potential to lower cholesterol levels while cautioning against possible organ damage based on the chemical composition of specific ingredients.

The firm announced that both co-founders Kazumasa Kobayashi (chairman) and Akihiro Kobayashi (president), who are part of the company's original family, would be leaving their executive roles to ensure clear responsibility for actions taken in relation to this issue.

This development follows a March incident wherein the firm withdrew three brands of dietary supplements after customers reported kidney problems. Later, it admitted that a potentially harmful acid produced by mold was detected at one of its manufacturing plants, leading to an inspection by government authorities.

In April, Kobayashi Pharmaceutical disclosed they were investigating 80 deaths possibly linked with their products and examining if other organs besides the kidneys had been affected. The Japanese government criticised the firm for delaying in revealing the scope of the investigation as "extremely regrettable".

The external legal advisors stated in Tuesday's report: "Kobayashi Pharmaceutical never before received numerous reports of serious incidents from physicians within such a short span. Despite this, the company did not immediately alert consumers or take appropriate action."

According to the firm, instead of promptly recalling the product and reporting the incident as it should have done, they chose to perform internal investigations first—a claim made by legal advisors in their report.

The new chief executive is Satoshi Yamane, who has previously been responsible for sustainability policies within the company. Akihiro Kobayashi, expressing his intention to take responsibility should any harm occur as a result of the company's actions, will continue to serve an executive role focusing on compensation matters.