In December 1976, Managing Director Kazumasa Kobayashi was appointed President and COO. In conjunction with this, Teruko Kobayashi, who had succeeded the President, returned to the seat of Chairman and CEO following the death of Saburo Kobayashi.

Kazumasa Koyabashi, the company's fourth President, is the eldest son of Saburo and Teruko Kobayashi. After joining the company in March 1962 and working his way up through such positions as salesman in the Shinjuku Store and accountant in the Accounting Department, he studied at Columbia University in the United States. When he returned to Japan, he worked as the Head of the Planning and Advertising Sections in October 1966, Director in November 1966, Head of the Planning Section and Product Sales Department in October 1968, Managing Director of the Product Division in November 1970, and served as Head of the Development Section in October 1971 before eventually being appointed President.

Kobayashi Pharmaceutical, under the direction of the youthful 37-year-old President, celebrated the 60th anniversary of its founding the following year in 1977. On October 14, employees and associates bowed their heads in silent prayer at a commemorative ceremony held at Kanzanji Spa. In August of that year, Chairman Teruko Kobayashi passed away at the age of 61.

The President, who rose from his seat to greet the attendees, faced all the employees who were present and announced that over the past 50 years the company had grown from 714 members to 838 and that total sales had risen from 10.7 billion to 33 billion yen.

"What Kobayashi Pharmaceutical needs are people, products, and a sales force. People are the company's foundation, hit products are the company's development, and hit products cannot be produced without a sales force. Let us continue to strive for the future development of the company and the well-being of our employees." The President's three principles later known as "The Three H's" (People, Hit Products, and Sales Force; or hito, hitto shohin, and hanbairyoku in Japanese) were already clear at this time.

The period of high growth was now over, and a time of stable growth had begun with the company's feet planted firmly on the ground. At just such a time, the appearance of the youthful and energetic manager was welcomed by employees and customers alike.

The new president was welcomed, and a feeling of "Let's get down to it!" permeated throughout company. Even the President himself announced a flowing succession of abundant ideas and led the company unabashedly. The new President went not on the defensive but rather the offensive, and drove the company to look ahead rather than behind. Emphasis was placed on business, and a succession of policies prioritizing development was announced.

At that time, Products Division Director Hiroaki Miyata became Vice-President of the Manufacturing Division and Head of the Development Section, and Business Operations Division Director Yutaka Kobayashi became the Director of the Foreign Operations Division. With these youthful leaders at the helm, the management at Kobayashi Pharmaceutical was well on its way to becoming a progressive and highly international force.

One of these developments was the early shift toward computerization. Not all sections and departments, however, were doing so well. The fact is that there were still many problems to be solved and tough issues remaining in the business environment.