Fujifilm's expedition into the world of biopharmaceuticals

[jaredangle]

Just caught this link on the front page of The Japan Times. It appears that Fuji is in the process of purchasing two of Merck's subsidiaries to give the pharmaceutical business a try, to produce new drugs to combat cancer.

http://search.japantimes.co.jp/cgi-bin/nb20110301a1.html

It's very nice to see that Fuji is stepping up to the plate to take care of these issues in a time of need, but it also struck me that this business venture is one of a much higher profit than certain elements of Fuji's film business (at least, if current health care costs in many parts of the world are an indication). Is it possible that leftover profits from the pharmaceutical business can benefit Fuji's film production, especially in a time when Neopan 1600 has been discontinued and the PRO160 series has been downsized?

Looking for your thoughts.

 

[sevo]

Is it possible that leftover profits from the pharmaceutical business can benefit Fuji's film production

Possible? Yes. Likely? No. Subsidizing one part of a business from another is beyond the imagination of the modern MBA, and will not happen...

 

[Leigh Youdale]

It looks like a classic case of a strategic business refocus - DuPont did it in the last few years when they first sold off their explosives business, then their fibre business which was their cash cow, and invested heavily in high tech biochem and agricultural (GM) pursuits where margins and rewards were much more promising than the traditional business areas which had become commodities. Like digital P&S cameras have become a commodity.
I'd look to this being a possible pointer to Fuji exiting the film business and any other low profit chemical sector they are in and reinventing the company. Won't happen overnight but watch the business press over the next three or four years for indicators. Even if that scenario does not come to pass in full, you can bet they won't be investing any more money in the film business and may just run it at level that satisfies domestic demand in Japan where they have a distinct market advantage.

 

[hans voralberg]

Looking to join the rank of Keiretsu perhaps?