Global expansion of medical, pharmaceutical, and functional food ingredients

「Revenue in this segment was ¥82,975 million, up ¥5,691 million year on year, or 7.4%, while operating profit was ¥14,840 million, up ¥1,440 million, or 10.7%. Revenue and profit increased as Medical achieved significant growth.」

「Medical has become our largest earnings business as sales of blood purification devices and catheters have expanded significantly. The new Hokkaido plant, the Tomatoh Plant for blood purification devices, was brought onstream quickly, and construction of the new catheter plant that follows is also progressing smoothly. We aim to achieve further growth in the Medical business.」

「Medical: The new Hokkaido blood purification device plant, the Tomato plant, began operations smoothly. Sales of both blood purification devices and catheters are expanding steadily. We have also decided to construct a new catheter plant at the same facility. We aim to achieve substantial business growth in response to rising global demand.」

「Medical: Sales of both blood purification devices and catheters remained firm in Japan and overseas. We have already taken steps to strengthen our sales organization in the US market, which offers significant opportunities for business expansion. The Hokkaido blood purification device plant is progressing as planned toward operations beginning this spring.」

「Medical: Sales of both blood purification devices and catheters expanded in Japan and overseas, and performance remained firm. In response to strong sales, we are accelerating consideration of a new catheter production facility following the blood purification device plant currently under construction in Hokkaido. We also plan to launch new products in the gastrointestinal and arrhythmia fields.」

「Revenue in this segment was ¥70,786 million, an increase of ¥11,849 million, or 20.1%, from the previous fiscal year, while operating profit was ¥15,682 million, an increase of ¥3,019 million, or 23.8%. Medical: Sales of blood purification devices and catheters expanded steadily in Japan and overseas. We are also strengthening our sales organization in the US, our largest market, and our production systems in Vietnam and Hokkaido to accelerate the global expansion of the Medical business.」

「Revenue in this segment was ¥52,651 million, an increase of ¥10,630 million, or 25.3%, year on year, while operating profit was ¥11,981 million, an increase of ¥3,561 million, or 42.3%. Medical: New products performed well, and sales of blood purification devices and catheters expanded in Japan and overseas, driving company-wide performance. We are accelerating efforts to strengthen the sales organization in the US, our largest market, and further accelerate the global expansion of the Medical business.」

「Medical: Sales of blood purification devices and catheters, our main product categories, continue to expand steadily in Japan and overseas. We increased the Vietnam plant’s production capacity to 3 times its previous level. We are steadily strengthening our sales organization in the US, our largest market, to accelerate the global expansion of the Medical business. We doubled production of COVID-19 PCR testing reagents and will also expand our production system for antigen testing kits.」

「Revenue in this segment was ¥16,623 million, an increase of ¥3,403 million, or 25.7%, year on year, while operating profit was ¥3,856 million, an increase of ¥1,546 million, or 66.9%. Medical: The number of cases in Japan and overseas recovered to pre-COVID levels, and sales of blood purification devices, including those for ASO treatment, and catheters expanded steadily. Capacity expansion at the Vietnam plant was completed. Going forward, we will strengthen the supply system and accelerate the global expansion of the Medical business.」

「Construction of a new medical device plant in Hokkaido (investment of approximately ¥10 billion; scheduled to begin operations in May 2024) We acquired land in the Tomakomai East area of Hokkaido and decided to construct a state-of-the-art medical device plant with advanced automation and sophistication through the integration of IT and AI technologies.」

「Medical: Sales of the newly launched blood purification device for ASO treatment increased significantly. Catheter sales, including cerebral aneurysm embolic coils, expanded, particularly overseas. We also launched a PCR testing kit for COVID-19 variants and will continue contributing to efforts to prevent the spread of COVID-19.」

「Medical: As treatment frequency continues to decline against the backdrop of the COVID-19 pandemic, the new blood purification device for ASO treatment is receiving strong market reviews and sales volumes are increasing steadily. Catheter sales, including cerebral aneurysm embolic coils, expanded steadily, particularly overseas. Pharma: API sales in small-molecule pharmaceuticals increased steadily. In biopharmaceuticals, orders for new products are progressing at Kaneka Eurogentec’s expanded production line. Sales of testing reagents also expanded, and contract manufacturing of COVID-19 vaccine intermediates is expected to enter full-scale operation.」

「Revenue in this segment was ¥52,422 million, an increase of ¥6,070 million, or 13.1%, from the previous fiscal year, while operating profit was ¥11,436 million, an increase of ¥2,519 million, or 28.2%.」

「Revenue in this segment was ¥38,522 million, an increase of ¥5,271 million, or 15.9%, year on year, while operating profit was ¥8,183 million, an increase of ¥2,135 million, or 35.3%. Medical: For catheters, strong domestic sales and the start of US sales of the new cerebral aneurysm embolic coil contributed to higher earnings. Pharma: Earnings expanded steadily and increased significantly year on year, supported by supplies of Avigan API, expanded contract manufacturing of Kaneka Eurogentec’s PCR testing reagents and COVID-19 vaccine intermediates, and the start-up of an expanded biopharmaceutical production line.」

「Medical: Sales expanded in both domestic and overseas markets. The new cerebral aneurysm embolic coil performed well, and sales to the US began in September, contributing to higher earnings. A new blood purification device for ASO treatment is scheduled for launch in 2021. Pharma: Earnings expanded and increased significantly year on year, supported by the start of supplies of Avigan API and Kaneka Eurogentec’s PCR testing reagents. At Kaneka Eurogentec, inquiries from major global pharmaceutical companies are increasing, including an order to manufacture vaccine intermediates for AnGes. Biologics capacity expansion equipment is also expected to begin operations in October and contribute to higher earnings. We are considering an early further expansion of capacity.」

「Medical: Catheter sales, which temporarily stagnated during the COVID-19 pandemic, are recovering. Embolic coils are performing well, and a US launch is planned. We have decided to increase the capacity of our Vietnam plant to 3 times its current level. We are actively pursuing technical and capital alliances in new medical fields. We have started breast reconstruction treatment using the cultured CAL method.」

「The embolic coil launched in Japan in November has achieved steady sales growth, and a US launch is also planned. Going forward, we aim to aggressively expand into new medical fields, including drug-coated balloon catheters, electrophysiology catheters and blood-flow measurement equipment. We are actively pursuing capital and business alliances with medical device companies in the US and Europe to achieve significant growth in this SV.」

「Medical Devices: New products, including high-performance balloon catheters and gastrointestinal catheters, are driving sales growth. Sales expanded in both domestic and overseas markets. In the second half of the current fiscal year, we plan to launch new embolic coils in Japan and overseas. Medical Devices is a core business in the health field, which the company has designated as a priority, and we aim to aggressively expand into new medical fields, including drug-coated balloon catheters, electrophysiology catheters and blood-flow measurement equipment from our US capital and business partner.」

「Meanwhile, sales of biopharmaceuticals by Kaneka Eurogentec remained firm, construction to expand production capacity was completed, and development of new products with customers is under way toward full-scale operations next year.」

「Medical Devices: In addition to steady sales of new products, including high-performance balloon catheters and gastrointestinal catheters, overseas sales expanded and offset the impact of reimbursement price revisions in Japan. Going forward, in addition to drug-coated balloon catheters and electrophysiology catheters, we will expand the business into new medical fields such as blood-flow measurement equipment through a capital and business alliance with a new US medical device company.」

「Medical Devices: Sales of new products, including high-performance balloon catheters and gastrointestinal catheters, progressed steadily. Overseas sales expanded and offset the impact of reimbursement price revisions in Japan. In addition to drug-coated balloon catheter technology and electrophysiology catheter technology acquired through its technical and business alliance with Med Alliance, the company entered into a capital and business alliance with a new US medical device company and is expanding into new medical fields such as blood-flow measurement equipment.」

「Medical Devices: Sales of new products, including high-performance balloon catheters and gastrointestinal catheters, progressed steadily. Overseas sales growth offset the impact of reimbursement price revisions in Japan. We will expand sales of new medical products and in new regions such as Latin America, including drug-coated balloon catheters and electrophysiology catheters. Pharma: Sales of biopharmaceuticals by Kaneka Eurogentec remained firm. Construction to expand production capacity is progressing as planned. The continuous manufacturing equipment for APIs and intermediates installed at Kaneka Singapore and Osaka Synthetic Chemical Laboratories has received strong market reviews and is contributing to expanded sales.」

「Kaneka Singapore installed continuous manufacturing equipment for APIs and intermediates and began commercial production in June. Leveraging the ability to efficiently produce a diverse range of products, we will strengthen the small-molecule pharmaceuticals business and accelerate comprehensive expansion in the Health Care field.」

「Medical Devices: Sales remained firm in both domestic and overseas markets. Sales of new products, including high-pressure balloon catheters for peripheral vascular applications, also progressed steadily, offsetting lower reimbursement prices and securing earnings at approximately the previous year’s level. Going forward, we will strengthen expansion into new medical fields, including drug-coated balloons, and our US sales organization for the blood purification business.」

「From the second quarter onward, we will further advance joint ventures with other companies in the interventional business and expand the blood purification business further by strengthening our US sales organization.」

「Pharmaceuticals: Sales in the API and biologics fields expanded steadily. In the biologics field, we decided to increase production capacity at Eurogentec, which became a wholly owned subsidiary last year, to meet strong demand.」

「Medical Devices: Sales in the blood purification business remained weak. The interventional business was affected by reimbursement price revisions in Japan, but overseas sales steadily increased as joint ventures with other companies expanded, and initiatives with new partners also began generating results. Pharmaceuticals: Sales in the API and biologics fields expanded steadily. Functional Food Ingredients: Sales volumes of ubiquinol CoQ10 steadily increased, particularly in the US, our largest market, while sales in Japan increased following the launch of the Foods with Function Claims system.」

「Medical Devices: Sales in the blood purification business remained weak, but sales volumes for the US increased in the interventional business, supported by the expansion of joint ventures with other companies. The domestic market was affected by reimbursement price revisions, but we are also focusing on expanding the business into new fields such as gastrointestinal therapies. Pharmaceuticals: Sales in the API and biologics fields expanded steadily. Functional Food Ingredients: Sales volumes of ubiquinol CoQ10 steadily increased, particularly in the US, our largest market. In Japan, recognition of our products grew and sales expanded following the launch of the Foods with Function Claims system.」

「Medical Devices: The interventional business was affected by reimbursement price revisions in the domestic market, but sales expanded through initiatives including joint ventures with other companies in the US and European markets. We are also focusing on expanding the business into new fields such as gastrointestinal therapies.」

「We contribute to the health of people worldwide through global expansion of medical devices and pharmaceutical ingredients and by expanding our lineup of functional food ingredients.」