Kobayashi Is Exiting Red Yeast Products Business After Deaths

  • Supplements maker is still investigating deaths of 86 people
  • Company to recall red yeast products, shut down production
Akihiro Kobayashi bows during a news conference in Osaka on Aug. 8.Photographer: Fred Mery/Bloomberg
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Kobayashi Pharmaceutical Co. is shutting down production and sales of supplements using red yeast, which is suspected to have caused the deaths of dozens of people.

The measure will result in a charge of about ¥4.1 billion ($28 million) for the April-June quarter, the Osaka-based company said in a statementBloomberg Terminal Thursday. Kobayashi, one of Japan’s biggest supplement makers, said it will continue to work with customers and partners to compensate them and investigate the issue.