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Case Study

Chugai (A): Overcoming adversity with a transformative leap

By Kazuo Ichijo and Yunfei Feng

7 pages

November 2025

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Reference: IMD-2709

Chugai A traces the transformative journey of a leading Japanese biopharmaceutical firm from its founding in 1925 to the early 2000s. Starting with founder Jz Ueno’s vision to ‘create medicines that benefit society,’ the case details the company’s evolution from an over-the-counter OTC drug importer to a research-driven enterprise. Key milestones include the shift to prescription drugs in the 1960s and a strategic pivot to biotechnology in the 1980s. Despite Japan’s limited biotech expertise at the time, Chugai successfully developed groundbreaking therapies by forging global partnerships, such as with the US-based Genetics Institute, and laid the foundation for its leadership in biopharmaceuticals. The case highlights visionary leaders like Jz Ueno, Kimio Ueno, and Osamu Nagayama, who drove pivotal strategic transformations in response to environmental and policy changes from 1925 to the 1990s. The central conflict focuses on how President Nagayama, upon taking office in 1992, navigated the limitations of the traditional business to seize the immense opportunities in biotechnology, ultimately realizing the firm’s ambition to become an international enterprise.

Learning Objective

Understand how to build dynamic capabilities for continuous reinvention in order to pivot strategically by leveraging technological shifts and via proactive resource reallocation.
Understand how visionary leaders drive transformation and operational change during crises by making critical decisions and orchestrating strategic pivots.
Explore how to align execution with vision in order to drive visionary success.

Keywords

Strategy, Global Business, Mergers and Acquisitions, Organizational Culture, Corporate Transformation, Dynamic Capabilities, Strategic Pivot, Resource Allocation

Settings

Asia, Japan
Chugai Pharmaceutical, Healthcare, Pharmaceuticals
1925-2002

Type

Published Sources

Available Languages

English

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This case study is part of a series

Chugai (A): Overcoming adversity with a transformative leap
Chugai (B): Alliance with Roche to be among the best
Chugai (C): Navigating the next century of global innovation

This case study is part of a series

Chugai (A): Overcoming adversity with a transformative leap
Chugai (B): Alliance with Roche to be among the best
Chugai (C): Navigating the next century of global innovation

Chugai (A): Overcoming adversity with a transformative leap

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2709 ©2025

Summary

Chugai A traces the transformative journey of a leading Japanese biopharmaceutical firm from its founding in 1925 to the early 2000s. Starting with...

Reference IMD-2709

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

Chugai (B): Alliance with Roche to be among the best

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2710 ©2025

Summary

Chugai B examines the pivotal strategic alliance formed in October 2002 between Chugai Pharmaceutical and Swiss giant Roche. Facing constraints in ...

Reference IMD-2710

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

Chugai (C): Navigating the next century of global innovation

By Kazuo Ichijo and Yunfei Feng
Case reference: IMD-2711 ©2025

Summary

Chugai C focuses on the company's future as it celebrates its 100th anniversary in 2025. In 2021, Chugai launched its ambitious 'TOP I 2030' growth...

Reference IMD-2711

Organization Chugai Pharmaceutical

Industry Healthcare, Pharmaceuticals

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Mergers and Acquisitions

Organizational Culture

Global Business

Browse all topics

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