Jan 24, 2005President & COO: Yutaka KOBAYASHI
(Code No. 4967 The First Section of TSE/OSE)
| Kobayashi Pharmaceutical Announces Liquidation of U.S. Subsidiary |
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Kobayashi Pharmaceutical has announced a decision to liquidate US subsidiary Bluebird Development, LLC, taken at a board of directors meeting held on January 24, 2005. Rationale for liquidation Bluebird LLC was established with the aim of augmenting the product lineup offered by the Kobayashi Medical Division, Kobayashi's medical device business. Kobayashi Medical markets advanced medical equipment and devices developed by European and US companies for sale in the Japanese market. After its establishment, Bluebird played a major role in introducing innovative medical equipment and devices to the Japanese market in a timely manner, and by providing Kobayashi with information on the European and US medical business. However, Kobayashi is now able to develop its own more efficient system for collecting information. This prompted the Company towards its decision to liquidate Bluebird in mid-February 2005 (tentative). Overview of Bluebird Development, LLC
Corporate name: Bluebird Development, LLC
Headquarters: Centerville Road, Suite 400 Wilmington, New Castle
Delaware 19808, USA
Date of establishment: February 26, 1996
Management: Kobayashi Pharmaceuticals of America, Inc
Capital: USD 4,601,009
Investor: Kobayashi Pharmaceuticals of America, Inc. (99% stake)
and two others
Business: Accumulation of information of medical business in
Europe and the US
Settlement term: Decembe
Earnings in past two fiscal years:
Year ending December 2002 Year ending December 2003
Sales 213 mil yen 202 mil yen
Ordinary income 19 mil yen 22 mil yen
Net income 19 mil yen 22 mil yen
Total assets 586 mil yen 534 mil yen
Shareholders' equity 574 mil yen 523 mil yen
Impact on earnings The liquidation of Bluebird is expected to have a negligible effect on Kobayashi's earnings. |