Blackstone acquired a 60% stake in Tokyo-based contract research firm CMIC, strengthening its position in Japan’s life sciences sector.

The deal, valued in the hundreds of millions of dollars, comes as private equity firms ramp up investments in Japan’s pharmaceutical industry, driven by regulatory changes that speed up drug approvals.

This move follows Bain Capital’s $3.3bn acquisition of Mitsubishi Tanabe Pharma last month, highlighting private equity’s growing focus on Japan’s healthcare market. Recent reforms aim to cut Japan’s “drug lag”—the delay in making new medicines available—making pharmaceutical investments more attractive.

Atsuhiko Sakamoto, Blackstone’s head of Japan private equity, noted that Japan’s clinical trial process has been slow but is now improving. He emphasised Blackstone’s role in accelerating drug development and approvals, particularly as demand rises with an ageing population.

Through its Life Sciences fund, Blackstone has invested in late-stage drug development. Owning CMIC will help the firm bring new treatments to Japan more quickly. In March 2023, 143 new drugs approved in the US and Europe were still unavailable in Japan, with over half not even applying for approval, according to the health ministry.

Blackstone plans to expand CMIC through further acquisitions in Japan’s pharmaceutical services sector, with an initial public offering targeted within five years. Last year, it took Japanese pharmaceutical services firm I’rom private but intends to keep it separate from CMIC.

Founded in 1992, CMIC was among Japan’s first contract research firms, assisting global pharmaceutical companies with local clinical trials. The founding family, through CMIC Holdings, will retain a 40% stake in the company.