In May, 1956, the Pharmaceutical division of the Kobayashi group absorbed the former Kobayashi Pharmaceuticals Corporation which had been a separate company since 1940, to become one company under the name of "Kobayashi Pharmaceutical Corporation."
Daring not to use the established Kobayashi Daiyakubo Company name, Saburo wanted to express strongly the two aspects of manufacture and sales of the company by calling it "Kobayashi Pharmaceutical," an unfamiliar, less-friendly name.
In November of that year the newly created Kobayashi Pharmaceutical completed and moved into their new premises that had been under construction at 5-chome, Doshomachi Higashi-ku Osaka, the location of the old company. In Doshomachi, which was still in the process of recovery, the new five-story steel reinforced concrete building dominated the surrounding buildings and boasted a conspicuously grand appearance in the area.
For the new company, with its new locations in Osaka and Tokyo, the good news kept coming in. Kobayashi Pharmaceutical entered the top class of companies in the industry. Beginning around 1945, business success steadily expanded in the new, post-war environment and conditions, and Kobayashi gradually caught up with other companies less agile in their recovery. In no time, they had achieved their pre-war dreams of a position among top-class companies.
No one was pessimistic about the future prospects of Kobayashi Pharmaceutical. In the industry, it seemed the success would continue, and few had any doubts about its continued expansion--employees and directors alike.
However, a small, dark cloud was looming in the otherwise bright future of Kobayashi Pharmaceutical. In the spring of the following year, 1957, foreboding activity had begun in the Tokyo branch.