Pressure on Dispensing Pharmacy Profitability from Revisions to Dispensing Fees and Drug Prices
First written in FY2017-Q1. 10 of 27 entries say "Materialised", first in FY2017-Q2. Latest entry: FY2027-H1.
Medical Ikkou Group moved to the "Worse" side of this theme in 2016, 10 years before the typical company in this theme (2026).
0 other companies' latest entry also says "Other".
- FY2027-H1Prescription fee increases alongside lower profitsAnnual report
「Meanwhile, revenue increased slightly owing to higher revenue per prescription. As a result, revenue was ¥13,215 million, up 1.2% year on year, while operating income was ¥610 million, down 7.2%.」
While the dispensing pharmacy business generated higher revenue owing to increased revenue per prescription, operating income fell 7.2% year on year, with profit pressure from the pricing and earnings environment continuing to affect business performance. - FY2026MaterialisedAnnual report
「However, profit declined from the previous consolidated fiscal year due to the impact of reductions in official drug prices and the front-loading of integration costs.」
The impact of lower drug prices appeared in the results as earnings pressure in the pharmaceutical wholesaling business, whose operating profit fell 16.7% year on year. - 2026-04-06WorsenedEarnings
「Looking ahead, the industry as a whole is expected to face a challenging environment in anticipation of revisions to medical dispensing fees.」
The Group presents a challenging environment for the dispensing pharmacy industry as an assumption for the outlook, ahead of revisions to medical dispensing fees. - FY2025WorsenedAnnual report
「However, earnings were significantly affected by the drug price revision and other factors, and M&A had not yet reached a level where it could offset the impact on earnings. As a result, revenue was ¥24,709 million, up 5.0% year on year, while operating profit was ¥1,234 million, down 12.2%.」
Continued earnings pressure from drug price revisions and other factors could not be fully offset by higher revenue from M&A, and operating profit in the dispensing pharmacy business fell 12.2% year on year. - FY2025-H1MaterialisedAnnual report
「Meanwhile, 京寿薬品 became a consolidated subsidiary in June 2024, contributing to revenue for the business segment as a whole. However, due in part to the impact of drug price revisions, its contribution to earnings has yet to materialize. As a result, revenue was ¥11,911 million, up 0.4% year on year, and operating profit was ¥551 million, down 19.9% year on year.」
The impact of drug price revisions and other factors has materialized in delayed earnings contributions and a 19.9% decline in operating profit in the dispensing pharmacy business. quantified: true, materialized: true. - FY2025-Q1MaterialisedAnnual report
「The impact of drug price revisions also caused revenue for the dispensing pharmacy business as a whole to decline year on year. As a result, revenue was ¥5,823 million, down 1.5% year on year, and operating profit was ¥310 million, down 5.6% year on year.」
The impact of drug price revisions was reflected in the results as lower revenue and lower operating profit in the dispensing pharmacy business. - FY2024-Q3RestatedAnnual report
「The unit price of pharmaceutical products declined year on year partly due to the impact of drug price revisions, but revenue for the dispensing pharmacy business as a whole increased year on year.」
The company states that although the unit price of pharmaceutical products continued to decline due to drug price revisions, the dispensing pharmacy business as a whole generated higher revenue. - FY2024-Q2MaterialisedAnnual report
「The unit price of pharmaceutical products declined year on year partly due to the impact of drug price revisions, but revenue for the dispensing pharmacy business as a whole increased year on year.」
Although the decline in the unit price of pharmaceutical products due to drug price revisions actually occurred, total revenue in the dispensing pharmacy business increased year on year. - FY2024-Q1MaterialisedAnnual report
「The unit price of pharmaceutical products declined year on year partly due to the impact of drug price revisions, but revenue for the dispensing pharmacy business as a whole increased year on year.」
Although the decline in the unit price of pharmaceutical products due to drug price revisions actually occurred, revenue in the dispensing pharmacy business increased due to the rise in prescriptions filled and other factors. - FY2023RestatedAnnual report
「If drug price standards and dispensing fees are revised in the future and points or other items are changed, this may affect the performance of the group.」
The company continues to identify the potential impact of drug price standard and dispensing fee revisions on the dispensing pharmacy business as a key risk to performance. - FY2023-Q2WorsenedAnnual report
「Although the earnings environment has become increasingly challenging due to the impact of drug price revisions, the company has worked to contain expenses through integrated business operations. As a result, revenue was ¥1,402 million, down 1.5% year on year, and operating profit was ¥19 million, down 61.0% year on year.」
The impact of drug price revisions made the earnings environment for the pharmaceutical wholesaling business increasingly challenging, and was reflected in the results as lower revenue and a 61.0% decline in operating profit. - FY2023-Q1MaterialisedAnnual report
「In terms of earnings, the store was positioned as a pilot store and is not expected to contribute to profit until later. The business as a whole also lacked momentum due in part to the negative impact of the dispensing fee revision.」
The negative impact of the dispensing fee revision has actually emerged in the business as a factor behind the lack of momentum in earnings across the dispensing pharmacy business. - FY2022-Q2RestatedAnnual report
「Although the average revenue per prescription has declined due to the impact of drug price revisions and other factors, the increase in the number of prescriptions filled offset the decline, and dispensing revenue remained firm.」
The company continues to recognize the impact of declining average revenue per prescription due to drug price revisions and other factors, but states that the increase in prescriptions filled offset the decline. - FY2021-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter under review. In addition, there have been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new risks or material changes regarding pressure on dispensing pharmacy earnings from dispensing fee and drug price revisions. - FY2021-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new risks or material changes regarding earnings pressure from dispensing fee and drug price revisions. - FY2020-Q3RestatedAnnual report
「No new business or other risks arose during the cumulative third quarter under review. In addition, there have been no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new risks or material changes regarding earnings pressure from dispensing fee and drug price revisions. - FY2020-Q2RestatedAnnual report
「During the first six months of the current consolidated fiscal year, there were no newly arising business or other risks. In addition, there were no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
The company states that there have been no new risks or material changes regarding earnings pressure from dispensing fee and drug price revisions. - FY2019WorsenedAnnual report
「The dispensing fee and drug price revisions implemented in April 2018 reduced dispensing fees for chain pharmacies and pharmacies with a high concentration of prescriptions from specific medical institutions, significantly affecting the company's earnings.」
The reduction in dispensing fees resulting from the April 2018 revision significantly affected earnings, and operating profit in the dispensing pharmacy business declined 19.4%. - FY2019-Q3WorsenedAnnual report
「In the dispensing pharmacy business, revenue increased due to contributions from newly opened stores and a subsidiary added to the group in March, but profit declined significantly due to the impact of the April 2018 dispensing fee and drug price revisions. At the end of the third quarter, the group had a total of 95 dispensing pharmacies. As a result, revenue was ¥16,844 million, up 0.1% year on year, and operating profit was ¥1,027 million, down 21.6% year on year.」
The impact of the April 2018 dispensing fee and drug price revisions remained significant. The dispensing pharmacy business generated higher revenue, while operating profit declined 21.6% year on year. The risk has actually materialized as lower profit. - FY2019-Q2WorsenedAnnual report
「In this revision, in addition to a substantial reduction in drug prices, the assessment of pharmacies with a high concentration of prescriptions from specific medical institutions was reviewed, among other measures. The operating environment for chain pharmacies and large pharmacies located near medical institutions is becoming increasingly challenging.」
Regarding the April 2018 revision, the company specifically cited substantial drug price reductions and the reassessment of pharmacies with a high concentration of prescriptions, and stated that the operating environment for dispensing pharmacies had become more challenging. In the dispensing pharmacy business, revenue increased 0.6% year on year, while operating profit declined 18.6%. - FY2019-Q1WorsenedAnnual report
「Revenue increased due to contributions from stores opened in the previous fiscal year and a subsidiary added to the group in March, while the impact of the April 2018 dispensing fee and drug price revisions resulted in higher revenue but lower profit. As a result, revenue was ¥5,820 million, up 2.9% year on year, and operating profit was ¥337 million, down 24.6% year on year.」
The impact of the April 2018 dispensing fee and drug price revisions was reflected in the results: the dispensing pharmacy business generated higher revenue, while operating profit declined 24.6% year on year. - FY2018WorsenedAnnual report
「If drug price standards and dispensing fees are revised in the future and points or other items are changed, this may affect the performance of the group. The most recent drug price revision was implemented as shown below. Revision date: 1 April 2018; revision rate (%): △7.48」
The company continues to disclose the potential impact of dispensing fee and drug price revisions on performance and shows a drug price revision rate of △7.48% for the April 2018 revision. - FY2018-Q2MaterialisedAnnual report
「In the dispensing pharmacy business, revenue declined because the unit price of pharmaceutical products was below the previous fiscal year. Profit increased, however, as the company strengthened cost management. As a result, revenue was ¥11,242 million, down 1.1% year on year, and operating profit was ¥831 million, up 17.9% year on year.」
The decline in the unit price of pharmaceutical products was actually reflected in lower revenue in the dispensing pharmacy business, with revenue down 1.1% year on year. Meanwhile, operating profit increased 17.9% year on year due to strengthened cost management. - FY2018-Q1MaterialisedAnnual report
「Revenue was below the previous fiscal year due to the impact of the dispensing fee and drug price revisions implemented in April 2016. However, despite the impact of the revisions, dispensing fees recovered and profit increased due to efforts to promote the use of generic drugs and actively address home healthcare, among other initiatives.」
The impact of the dispensing fee and drug price revisions continued to be reflected in the results as a 4.0% year-on-year decline in revenue. Meanwhile, profit increased due to efforts to promote the use of generic drugs and address home healthcare. - FY2017-Q3MaterialisedAnnual report
「Although stores opened in the previous fiscal year and subsidiaries made group companies through M&A in the previous and current fiscal years contributed to results, revenue and operating profit were below the year-earlier levels due to the impact of the dispensing fee and drug price revisions implemented in April 2016, among other factors. As a result, revenue was ¥16,694 million, down 2.8% year on year, and operating profit was ¥1,123 million, down 15.0% year on year.」
The impact of the dispensing fee and drug price revisions continued to be reflected in the results as a 2.8% decline in revenue and a 15.0% decline in operating profit in the dispensing pharmacy business. - FY2017-Q2MaterialisedAnnual report
「Operating profit decreased due to the impact of the dispensing fee and drug price revisions implemented in April 2016, among other factors. As a result, revenue was ¥11,364 million, up 0.9% year on year, and operating profit was ¥705 million, down 18.2% year on year.」
The impact of the dispensing fee and drug price revisions continued to be reflected in the cumulative second-quarter results as an 18.2% year-on-year decline in operating profit. - FY2017-Q1First statedAnnual report
「Operating profit decreased due to the impact of the dispensing fee and drug price revisions implemented in April 2016, among other factors. As a result, revenue was ¥5,890 million, up 5.2% year on year, and operating profit was ¥370 million, down 16.4% year on year.」
The impact of the regulatory revisions was described as a decline in operating profit in the dispensing pharmacy business during the quarter.