Revenue Diversification through Strengthening Logistics and Sales Functions and Creating New Businesses

「In line with these strategies, during the fiscal year we advanced research and development aimed at the global rollout of new drugs for ultra-rare diseases through collaboration with ＪＣＲファーマ株式会社 (Ashiya, Hyogo, hereinafter ＪＣＲ), as an initiative toward expansion overseas.」

「This medium-term vision sets out 5 growth strategies, based on human resources and financial strategies, to achieve sustainable growth for the Group through a shift in its business portfolio and collaboration with partners: “expansion overseas,” “expansion of the prevention, pre-illness and agro-foods businesses,” “strengthening the business platform through digital technologies,” “building sustainable distribution,” and “co-creating value in community healthcare.”」

「This medium-term vision is based on human resources and financial strategies and sets out 5 growth strategies for shifting the business portfolio: “expansion overseas,” “expansion of the prevention, pre-illness and agro-foods businesses,” “strengthening the business platform through digital technologies,” “building sustainable distribution,” and “co-creating value in community healthcare.” We are pursuing these 5 growth strategies through active collaboration with our partners.」

「In June 2021, 株式会社メディセオ (Chuo-ku, Tokyo), our consolidated wholly owned subsidiary, began working with 株式会社ツルハ (Higashi-ku, Sapporo), which operates pharmacies and drugstores, to develop a new pharmaceutical distribution optimization model for realizing a sustainable society. In October of the same year, it began a similar initiative with 株式会社マツキヨココカラ＆カンパニー (Bunkyo-ku, Tokyo). We also invested in several promising venture companies in the medical device, medical IT and regenerative medicine fields through MEDIPAL Innovation Investment Limited Partnership, which we jointly established with ＳＢＩインベストメント株式会社 (Minato-ku, Tokyo).」

「In addition, as investments made through MEDIPAL Innovation Investment Limited Partnership, which we jointly established with ＳＢＩインベストメント株式会社 (Minato-ku, Tokyo, hereinafter ＳＢＩインベストメント), we invested in Holoeyes株式会社 (Minato-ku, Tokyo), a medical IT venture, in November of the same year, and in イノバセル株式会社 (Shibuya-ku, Tokyo), a regenerative medicine venture, in December. Going forward, we will continue to examine potential investments in a range of venture companies, leveraging the diverse sourcing capabilities of ＳＢＩインベストメント.」

「To further strengthen this initiative, we underwrote a third-party allotment by 日医工, bringing our ownership ratio to 9.9%. In August of the same year, we also underwrote a third-party allotment by オリヅルセラピューティクス株式会社 (Sakyo-ku, Kyoto), which develops regenerative medicine products using cell transplantation. In addition, in September of the same year, as the first investment made by MEDIPAL Innovation Investment Limited Partnership, which we jointly established with ＳＢＩインベストメント株式会社 (Minato-ku, Tokyo), we invested in リバーフィールド株式会社 (Shinjuku-ku, Tokyo), a medical device venture.」

「As part of this initiative, in May 2021, ＳＰＬｉｎｅ株式会社 (Chuo-ku, Tokyo), our consolidated wholly owned subsidiary, undertook distribution services for イズカーゴⓇ点滴静注用10mg, a recombinant enzyme replacement therapy for mucopolysaccharidosis type II for which ＪＣＲファーマ株式会社 (Ashiya, Hyogo) obtained marketing approval in March of the same year. In June of the same year, 株式会社メディセオ (Chuo-ku, Tokyo), our consolidated wholly owned subsidiary, and 株式会社ツルハ (Higashi-ku, Sapporo), which operates pharmacies and drugstores, began working to develop a new pharmaceutical distribution model for realizing a sustainable society.」

「In March 2021, we made 株式会社ソラミチシステム (Shinjuku-ku, Tokyo) a subsidiary. Also in March 2021, we jointly established the CVC (corporate venture capital) fund MEDIPAL Innovation Fund with ＳＢＩインベストメント株式会社 (Minato-ku, Tokyo), a wholly owned subsidiary of ＳＢＩホールディングス株式会社 (Minato-ku, Tokyo).」

「As part of this initiative, 株式会社ファルフィールド (Koto-ku, Tokyo) was established in October 2020 with the aim of developing the PMS business into a new revenue-generating business, and in January 2021 the business conducted by 3 wholesale companies for prescription drugs and other products was consolidated under the new company. Going forward, we will establish an even higher-quality and more agile operating structure and expand the scope of services to include a broad range of contract work for clinical research and clinical trials, in addition to this business.」

「The Tokyo Logistics Center of 株式会社メディセオ, which had been planned in the previous fiscal year, was completed in July 2020 as Medical Distribution Center Tokyo.」

「As part of these initiatives, in June 2020 we entered into an agreement with H.U. Group Holdings Co., Ltd. (formerly Miraca Holdings Co., Ltd.; Shinjuku-ku, Tokyo) regarding a strategic business alliance. We will combine the Group’s pharmaceutical-distribution network and expertise with the company’s logistics capabilities for high-quality clinical testing. We will also examine various opportunities in the regenerative-medicine field, which is expected to grow, and aim to build a medical logistics platform in the medical and healthcare sectors.」

「As part of these initiatives, in August 2019 we entered into a business alliance agreement with Mitsubishi Logistics Corporation (Chuo-ku, Tokyo) to build the latest and most suitable platform for pharmaceutical distribution, and invested in DP Network Co., Ltd. (Yashio, Saitama), its pharmaceutical-specialist transportation subsidiary. In November of the same year, we entered into a business alliance agreement with Promethera Biosciences S.A. (Mont-Saint-Guibert, Belgium). In March 2020, we entered into a capital and business alliance with Heartseed Co., Ltd. (Shinjuku-ku, Tokyo), which is working to commercialize myocardial regenerative medicine at an early stage.」

「As part of these initiatives, in November 2019 we entered into a business alliance agreement with Promethera Biosciences S.A. (Mont-Saint-Guibert, Belgium). We aim to establish a stable distribution system for Promethera’s innovative development products, from the clinical-trial stage through commercial launch and subsequent supply, by leveraging Medipal’s capabilities and expertise in distributing cell therapies under ultra-low-temperature conditions.」

「As part of these initiatives, in August 2019 we entered into a business alliance agreement with Mitsubishi Logistics Corporation (Chuo-ku, Tokyo) to build the latest and most suitable platform for pharmaceutical distribution, and invested in DP Network Co., Ltd., its pharmaceutical-specialist transportation subsidiary.」

「While further innovating existing businesses, new businesses will advance from “creation” to “expansion.” At the same time, we will build new frameworks that contribute to society and customers through partnerships with companies in various fields, thereby further expanding our earnings base and achieving sustainable growth.」

「As part of these initiatives, in November 2018 we invested 34.4% in Karada Medica Co., Ltd. (Shinjuku-ku, Tokyo), a wholly owned subsidiary of MTI Co., Ltd. that provides content distribution services related to healthcare.」

「As shares in Nobelpharma Co., Ltd. were acquired, the company has been included in the scope of equity-method affiliates from the second quarter of the current consolidated fiscal year.」

「The Group is pursuing initiatives under the “2019 Medipal Medium-Term Vision: Change the 卸 next — Innovation and Creation.” We will expand our earnings base and achieve sustainable growth for the Group by further improving the efficiency and expanding the functions of existing businesses, expanding new businesses by leveraging infrastructure and human resources nationwide, and developing businesses in growth areas by drawing on the functions and resources of Group companies. As part of these initiatives, in May 2018 we acquired additional shares in Nobelpharma Co., Ltd. (Chuo-ku, Tokyo), which has strengths in developing orphan drugs, increasing our ownership to 20%.」

「Furthermore, with the aim of promoting cloud-based electronic medical records for clinics, in March 2018 we entered into a capital alliance with Clinical Platform Co., Ltd. (Chiyoda-ku, Tokyo). Going forward, by combining Clinical Platform’s cloud-based electronic medical-record development capabilities and MTI Co., Ltd.’s app development and marketing capabilities in digital healthcare with the Group’s sales capabilities, we will create new value-added services for clinics that leverage new ICT technologies, medical data and healthcare data.」

「As part of these initiatives, in September 2017 we entered into a capital and business alliance with JCRファーマ株式会社. In January 2018, we established a joint venture in the United States to develop therapeutic drugs using the company’s proprietary technology.」

「As part of these initiatives, in September 2017 we entered into a capital and business alliance with JCRファーマ株式会社 (Ashiya, Hyogo). We are preparing to establish a joint venture in the United States to develop therapeutic drugs using the company’s proprietary technology. We also acquired 22% of the company’s total issued shares.」

「As initiatives in line with this vision, Medipal Foods Co., Ltd. (Chuo-ku, Sapporo), engaged in the wholesale business for food-processing ingredients and related products, commenced operations following an internal business integration in April 2016. In May, we launched SPLiNE Co., Ltd. (Chuo-ku, Tokyo), engaged in planning and proposing solutions for the distribution of specialty pharmaceuticals, including orphan drugs, and in June entered into a capital and business alliance with MTI Co., Ltd. (Shinjuku-ku, Tokyo), an app developer with strengths in digital healthcare. In July, we established Presas Cube Co., Ltd. (Minato-ku, Tokyo) as a joint venture to provide management support services for dispensing pharmacies. In March 2017, we established Skohia Pharma Co., Ltd. (Fujisawa, Kanagawa) as a drug-discovery venture jointly funded with Innovation Network Corporation of Japan (Chiyoda-ku, Tokyo) and Takeda Pharmaceutical Company Limited (Chuo-ku, Osaka).」

「As initiatives in line with this vision, Medipal Foods Co., Ltd. (Chuo-ku, Sapporo), engaged in the wholesale business for food-processing ingredients and related products, commenced operations following an internal reorganization in April 2016. In May, we launched SPLiNE Co., Ltd. (Chuo-ku, Tokyo), engaged in planning and proposing solutions for the distribution of specialty pharmaceuticals, including orphan drugs. In June, we entered into a capital and business alliance with MTI Co., Ltd. (Shinjuku-ku, Tokyo), an app developer with strengths in digital healthcare. In July, we established Presas Cube Co., Ltd. (Minato-ku, Tokyo) as a joint venture to provide management support services for dispensing pharmacies.」

「As part of this vision, Medipal Foods Co., Ltd. (Chuo-ku, Sapporo), engaged in the wholesale business for food-processing ingredients and related products, commenced operations following an internal reorganization in April 2016. In May, SPLiNE Co., Ltd. (Chuo-ku, Tokyo), engaged in planning and proposing solutions for the distribution of specialty pharmaceuticals, commenced operations. In June, we entered into a capital and business alliance with MTI Co., Ltd. (Shinjuku-ku, Tokyo), an app developer with strengths in digital healthcare, and in July established Presas Cube Co., Ltd. (Minato-ku, Tokyo) as a joint venture to provide management support services for community pharmacies.」

「We will expand our earnings base and achieve sustainable growth for the Group by further improving the efficiency and expanding the functions of existing businesses, expanding new businesses by leveraging infrastructure and human resources nationwide, and developing businesses in growth areas by drawing on the functions and resources of Group companies. As part of this vision, Medipal Foods Co., Ltd., engaged in the wholesale business for food-processing ingredients and related products, commenced operations following an internal reorganization on 1 April 2016, and SPLine Co., Ltd., engaged in planning and proposing stable supply solutions for specialty pharmaceuticals, commenced operations on 20 May of the same year.」

「In addition to further strengthening our logistics and sales functions and innovating existing businesses, we will diversify earnings by creating new businesses that leverage our assets, human resources, funds and external resources,」