Kobayashi Pharmaceutical Company President and CEO Resign

According to a statement from Kobayashi, President Akihiro Kobayashi and CEO Kazumasa Kobayashi will step down from their posts. Both are members of the company's founding family. The statement said the decision was "to clarify executive responsibility for a series of actions taken by the company" related to the red yeast rice issue. CEO Kazumasa Kobayashi will be replaced by Satoshi Yamane, who was in charge of the company's sustainability policy. However, Akihiro Kobayashi will remain in an executive role to manage compensation-related issues.

Kobayashi Pharmaceuticals is in the spotlight after a scandal involving products containing red yeast rice, which is fermented using mold. Red yeast rice has been used for centuries in food, alcoholic beverages and folk medicine across East Asia. Medical studies have shown that red yeast rice can improve cholesterol levels, but warnings have been issued that it could pose a risk of organ damage, depending on its chemical composition.

The scandal erupted in March, when Kobayashi recalled three types of dietary supplements after customers reported kidney problems. Kobayashi later said it had discovered a potentially toxic acid produced by mold at one of its factories. The Japanese government also inspected the company’s facilities.

Last month, Kobayashi said it was investigating a total of 80 deaths that may be linked to its supplements, and was also investigating whether internal organs other than the kidneys were damaged.

Kobayashi Pharmaceutical launched the product "beni-koji choleste help" in February 2021, selling about 1 million packages by the end of February this year. This functional food is advertised to help reduce bad LDL cholesterol levels.

Kobayashi said it had sold the product to about 50 companies in Japan and two in Taiwan. Earlier this year, following the health food scandal, Taiwanese companies also recalled 154 products containing red yeast rice.