The chairman and president of Kobayashi Pharmaceutical, a leading Japanese dietary supplement company, resigned on Tuesday (July 23) amid an investigation into dozens of deaths potentially linked to their cholesterol-lowering tablets.
The company is under scrutiny due to issues with its over-the-counter supplements containing red yeast rice, a traditional ingredient used in East Asia. The company’s board released an external report on Tuesday that said the firm had failed to prioritise consumer safety and acted with an “insufficient sense of urgency”.
Red yeast rice has been used historically in food and medicine, but studies indicate it can improve cholesterol levels while posing risks of organ damage. The company, which recalled three supplement brands in March after complaints of kidney problems, detected a potentially toxic acid produced by the mould used in production.
A company statement said president Akihiro Kobayashi and chairman Kazumasa Kobayashi, both belonging to the firm’s founding family, were leaving their posts. The decision was made “to clarify executive responsibility over a series of actions by our company related to the ‘beni koji’ issue”, the statement said.
Kobayashi Pharmaceutical revealed last month it was investigating 80 deaths potentially linked to the supplements and examining other possible organ damage. The government’s criticism of the company’s delayed reporting of these cases added to the controversy.
The report by a team of external lawyers, released on Tuesday, highlighted the company’s inadequate response to early reports of kidney issues. The firm initially delayed recalling the products and only acted after internal investigations.
“Kobayashi Pharmaceutical had never before received multiple reports of serious cases from doctors in such a short period of time,” the report said, “Despite this, the company did not immediately consider disclosure to consumers, acting with an insufficient sense of urgency.”
Satoshi Yamane, previously head of sustainability policy, has been appointed as the new president. Akihiro Kobayashi, the outgoing president, will stay on in an executive role to oversee compensation matters.