Sumitomo Chemical and Sumitomo Pharma to Launch Regenerative Medicine Joint Venture

Sumitomo Chemical Co., Ltd. and Sumitomo Pharma Co., Ltd. have taken a significant step in accelerating the development of regenerative medicine and cell therapy by forming a joint venture. The new entity, RACTHERA Co., Ltd., will focus on the research and development of these cutting-edge therapies within the Sumitomo Chemical Group. The venture is slated to begin operations on February 1, 2025, with the goal of advancing the global regenerative medicine and cell therapy market, which is poised for rapid growth.

The global market for cell therapies is projected to grow at an annual rate of 10% to 15%, with an estimated value of $2.0 billion in 2022. Recognizing this growth potential, Sumitomo Chemical has identified advanced medical solutions, including regenerative medicine and cell therapy, as key components of its medium- to long-term strategy. This initiative aims to leverage the company’s technological expertise in sectors such as healthcare, food, ICT, and the environment to address critical societal challenges, and to establish a robust business like its success in agro-solutions and ICT.

Sumitomo Pharma’s leadership in the field of cell therapy, particularly involving iPS (induced pluripotent stem) cells, positions the companies for success. The pharmaceutical company is at the forefront of developing groundbreaking iPS cell therapies, including treatments for Parkinson’s disease and retinal diseases. Sumitomo Pharma’s experience in clinical studies, such as its ongoing trials for iPS cell-derived therapies for retinal pigment epithelium tear and retinitis pigmentosa, adds significant expertise to the joint venture.

By combining Sumitomo Pharma’s advanced knowledge in iPS cell technology with Sumitomo Chemical’s capabilities in industrial engineering, analysis, and quality management, the joint venture aims to accelerate the development and global expansion of regenerative medicine and cell therapy. This collaboration is expected to enhance innovation, improve product development timelines, and scale the business to a projected value of approximately 350 billion yen by the late 2030s.

The joint venture’s impact will extend beyond financial growth. It will position Sumitomo Chemical and Sumitomo Pharma as global leaders in regenerative medicine, offering transformative therapies that could revolutionize the treatment of numerous conditions, including neurodegenerative diseases and retinal disorders. Moreover, the synergy between the two companies will not only foster innovation but also help bring novel treatments to patients more efficiently, potentially saving and improving countless lives.

This collaboration marks a critical milestone in the development of regenerative medicine, with both companies aiming to make a significant impact on healthcare worldwide.