Sumitomo Pharma Cuts 400 US Jobs as Credit Market Concerns Mount
- Bond price falls to lowest for regular Japan company debt
- Shares have also fallen even as Topix index nears record high
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Sumitomo Pharma Co. said it plans to cut about 400 jobs at its US subsidiary this month, pushing ahead with restructuring as debt market concern about its credit quality mounts.
The Osaka-based drugmaker cited a “severe business environment” and the failure of three key drugs to meet its revenue goals as reasons for the job reductions. That followed cuts of around 500 jobs last year. The company’s subordinated yen bond due in September 2050 has fallen 41% this year to an all-time low of ¥44.1, putting it deep in distressed territory.