Drugmaker Eisai Co. said Wednesday that its U.S. subsidiary, Eisai U.S.A. Inc., will close its vitamin factory in Pasadena, Texas.
Eisai U.S.A. will halt its bulk sales of synthetic vitamin E products to food manufacturers, according to the parent company.
The U.S. unit will continue, however, to sell medical inspection machines that verify whether foreign substances have been accidentally mixed in with medical substances in injection ampuls, the company said.
An Eisai spokesman said the red ink incurred by the U.S. subsidiary and a decline in the factory utilization rate at the plant in question were factors behind the decision.
The company said it will continue to manufacture synthetic vitamin E products in Japan while maintaining its bulk sales to corporate clients in Japan, other Asian markets and Europe.
Eisai has a sizable share in the global market for synthetic vitamin E products.
In 1999, Eisai and several other global drugmakers were found guilty of price-fixing in the U.S. vitamin products market.
Eisai paid $40 million in penalties in a plea bargain arrangement with the U.S. Justice Department.