Medical Device Business Covering Both Trading and Manufacturing

「Our group's strengths include a hybrid business model comprising both manufacturing and trading functions and a nationwide proprietary sales network, giving us a unique position in the industry.」

「Our Group will seek to achieve sustainable growth and profitability even in a rapidly changing business environment by making maximum use of its distinctive “hybrid business model” combining manufacturing and trading functions, and by incorporating market needs into its product lineup as quickly as possible.」

「Our group differentiates itself in the medical device industry by strategically and selectively combining our own products with sourced products to build a flexible and resilient product portfolio.」

「Our group is addressing this by leveraging the strength of combining manufacturing and trading functions to build a flexible and resilient product portfolio.」

「We have established a unique business model in the industry that combines the two functions of a trading company and a manufacturer. By further strengthening this business model, we believe we can continue to provide truly valuable medical devices to healthcare professionals in a timely manner and contribute to creating a healthier society.」

「Although pacemaker sales volumes were slightly below plan, measures including the new introduction of SSPC (site-selective pacing catheter), which assists lead placement, had a certain effect, enabling us to maintain volumes at approximately the same level as in the same period of the previous year.」

「In September 2019, we strengthened our product portfolio by changing the supplier of Rhythm Devices products to Boston Scientific. In April 2022, we further strengthened our sales capabilities by consolidating the sales structure through the transfer of Boston Scientific Japan sales personnel to our company.」

「In artificial vascular grafts, sales of our J Graft series of artificial vascular grafts for surgical treatment and FROZENIX open stent grafts, which are also one-of-a-kind products, remained steady. Sales of the AFX2 stent graft system for abdominal endovascular treatment were affected in the first half by postponed procedures and other factors, but remained steady from September onward as the infection situation eased, leaving sales at approximately the same level as the previous year. Together with Alto, a new product launched in October 2021, we will work to expand sales further.」

「Since October 2021, we have begun limited sales of Alto, a new abdominal stent graft product, at selected facilities and will work toward an early full-scale launch.」

「In terms of sales performance, sales in Rhythm Devices increased year on year due to contributions from pacemaker-related products. In EP/ablation, sales increased significantly year on year as the number of atrial fibrillation ablation procedures recovered, particularly because procedure volumes had declined sharply in the same period of the previous year due to the impact of COVID-19.」

「Going forward, we will establish a sales organization capable of providing more specialized services in both Rhythm Devices and EP/ablation, while working to further improve sales efficiency.」

「In Rhythm Devices, sales increased significantly year on year due to contributions from BSC's CRM-related products, for which full-scale sales began in September 2019.」

「In ICD-related products used to treat tachycardia, sales increased as volumes of ICDs (implantable cardioverter-defibrillators) and CRT-Ds (biventricular pacemakers with defibrillation capability) rose significantly compared with the period through August 2019, when we handled products from the former supplier. For CRT-Ds, we will seek to expand sales further by promoting HeartLogic, our proprietary patient-monitoring function introduced in October 2020.」

「With the cardiovascular field as its principal business area, the company is working to realize its management philosophy by developing and manufacturing outstanding medical devices that patients and healthcare professionals need, while also introducing advanced medical devices from overseas manufacturers to Japan at an early stage as a specialist trading company.」

「As full-scale sales of the company's CRM-related products, including cardiac pacemakers, began in September 2019, sales increased significantly.」

「In terms of sales performance for the six months ended 30 September, in Rhythm Devices, the S-ICD (fully subcutaneous implantable cardioverter-defibrillator) manufactured by Boston Scientific (hereinafter, “BSC”) and launched ahead of schedule in April 2019 contributed to higher sales. In September 2019, the transition of other CRM (cardiac rhythm management) products, including cardiac pacemakers, from the former supplier's products to BSC products was completed, and full-scale sales began.」

「In terms of sales performance for the three months ended 30 June, in Rhythm Devices, the S-ICD (fully subcutaneous implantable cardioverter-defibrillator) manufactured by Boston Scientific, which we began selling ahead of schedule in April 2019, contributed to higher sales.」

「Amid this competitive environment, we have strengthened both our function as a trading company, introducing products from advanced overseas medical device manufacturers to Japan for sale, and our function as a manufacturer, developing and producing our own products that reflect the needs of healthcare professionals, thereby enhancing our competitiveness.」

「In terms of sales performance for the nine months ended 31 December, the business was affected by the April 2018 revision of reimbursement prices for medical devices. Sales of existing products in Rhythm Devices declined following the announcement of a change in suppliers, but sales in other product categories increased year on year due to contributions from our own products and newly introduced products. As a result, sales for the nine months ended 31 December were ¥33,757 million, up 8.4% year on year.」

「In terms of sales performance for the six months ended 30 September, although the revision of reimbursement prices for medical devices in April, which lowered prices across our product portfolio, had an impact, higher sales volumes of existing products supported by an increase in procedures and contributions from newly introduced products offset the impact of the price reductions, resulting in higher sales.」

「In terms of sales performance for the three months ended 30 June, although the April revision of reimbursement prices lowered prices across our product portfolio, higher sales volumes of existing products and the introduction of new products offset the impact of the price reductions, resulting in higher sales.」

「In this market environment, we have focused on sales of existing products while, through our trading function, preparing to introduce outstanding overseas medical devices to Japan. We obtained regulatory approval for an endoscopic ablation system in July last year and plan to begin sales in July this year, and we began selling drug-eluting coronary stents in March this year. Through our manufacturing function, we have also pursued new initiatives, including entering the gastrointestinal field, a new area for us, by launching a colon stent developed using our proprietary product technologies.」

「In terms of sales performance for the nine months ended 31 December, in Rhythm Devices, sales of cardiac pacemakers compatible with MRI examinations increased. In EP/ablation, which primarily handles our own products, sales of products related to atrial fibrillation treatment, including our one-of-a-kind products, continued to increase as the number of atrial fibrillation ablation procedures rose. In surgical products, abdominal stent grafts became more widely adopted, while open stent grafts, which are one-of-a-kind products, also continued to grow. In interventional products, peripheral balloon catheters and atrial septal defect closure devices performed steadily.」

「In terms of sales performance for the six months ended 30 September, in Rhythm Devices, sales of cardiac pacemakers compatible with MRI (magnetic resonance imaging) examinations increased. In EP/ablation, which primarily handles our own products, sales of products related to atrial fibrillation treatment, including our one-of-a-kind products, increased as the number of atrial fibrillation ablation procedures continued to rise. In surgical products, abdominal stent grafts, with which we entered the market in January last year, and open stent grafts, which are one-of-a-kind products, continued to grow at high levels. In interventional products, penetration catheters and atrial septal defect closure devices performed steadily.」

「In terms of sales performance for the three months ended 30 June, in Rhythm Devices, sales of cardiac pacemakers compatible with MRI (magnetic resonance imaging) examinations increased. In EP/ablation, sales of products related to atrial fibrillation treatment, including our one-of-a-kind products, increased as the number of atrial fibrillation ablation procedures continued to rise. In surgical products, in addition to abdominal stent grafts, with which we entered the market in January last year, open stent grafts, which are one-of-a-kind products, performed well and contributed to higher sales. As a result, sales for the three months ended 30 June were ¥10,228 million, up 14.9% year on year.」

「To address this market environment, we have worked to provide the latest and most suitable medical devices by leveraging both our trading function, which introduces outstanding overseas medical devices to Japan, and our manufacturing function, which develops products that rapidly reflect the needs of Japanese healthcare professionals.」

「Against this backdrop, in Rhythm Devices, sales continued to recover, supported by cardiac pacemakers compatible with whole-body MRI (magnetic resonance imaging) examinations, introduced in March last year. In EP/ablation, which primarily handles our own products, sales of products related to atrial fibrillation treatment, including our one-of-a-kind products, increased as the number of atrial fibrillation ablation procedures rose. In surgical products, abdominal stent grafts, with which we entered the market in January last year, also contributed to higher sales. As a result, sales for the nine months ended 31 December were ¥27,264 million, up 25.6% year on year.」

「Against this backdrop, in Rhythm Devices, sales volumes of cardiac pacemakers compatible with whole-body MRI (magnetic resonance imaging) examinations, introduced in March this year, increased steadily. In EP/ablation, which primarily handles our own products, sales of products related to atrial fibrillation treatment, including our one-of-a-kind products, increased as the number of atrial fibrillation ablation procedures rose.」

「In stent grafts, in addition to the thoracic products we have traditionally handled, we introduced the AFX stent graft system in January this year and entered the abdominal market, resulting in higher sales than in the same period of the previous year.」

「We are focusing on new product launches from both our trading and manufacturing perspectives.」