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The chairman and president of Kobayashi Pharmaceutical, a major Japanese dietary supplement maker, are resigning amidst a scandal involving up to 80 deaths potentially linked to their cholesterol-lowering supplements. The company’s board released a report stating that they had failed to prioritize consumer safety and acted with insufficient urgency. The supplements contained red yeast rice, a traditional ingredient in east Asian medicine, known to improve cholesterol levels but also carry a risk of organ damage.

The scandal began in March when customers reported kidney problems after consuming the supplements. The company later found a toxic acid produced by the mould at one of its factories. The government conducted an inspection, and the company admitted to potentially harming 80 individuals.

The decision for the chairman and president to resign was made to clarify executive responsibility for the issue. The new president of the company is Satoshi Yamane, previously head of sustainability policy. The outgoing president will stay in an executive role to manage compensation matters.

The external lawyers involved in the investigation stated that Kobayashi Pharmaceutical should have recalled the products immediately and reported the incident earlier. The company’s delay in taking action was noted as “extremely regrettable” by the government. Despite the resignation of the company’s top executives, questions remain about the future of the company and the impact of the scandal on its reputation.

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