Strengthening Development and Procurement Capabilities in Growth Areas

「Accordingly, WOMA plans to begin selling in the Chinese market the newly approved products in addition to the China-manufactured artificial hip products for which regulatory approval has already been obtained.」

「In the artificial hip market, meanwhile, the number of cases won remained firm as the new Trivicta Hip Stem was rolled out nationwide, resulting in higher sales from total hip arthroplasty (THA).」

「In the artificial hip products field, the new Trivicta Hip Stem continued to perform steadily, and revenue from total hip arthroplasty (THA) increased year on year.」

「The new Trivicta Hip Stem, an artificial hip product with a triple-taper design addressing growing needs in the U.S. artificial hip market, began limited-facility sales during the current interim period.」

「・Introduction of products that contribute to improving QOL for locomotive syndrome (musculoskeletal syndrome): 2 products in the artificial joint products field」

「Sales of the KMC Kyphoplasty System increased after the Group implemented measures to capture growth opportunities from the expansion of the BKP market in the current fiscal year.」

「In Japan, sales increased in the spinal fixation products field for products including the Vusion Ti 3D Cage, Lynx Plate and KMC Kyphoplasty System. The number of cases secured for the KMC Kyphoplasty System had declined in the second half of the previous fiscal year due to the impact of a competitor's entry into the BKP (Balloon Kyphoplasty) market. However, after implementing measures to capture growth opportunities from the expansion of the BKP market in the current fiscal year, the number of cases secured began to trend upward.」

「In the United States, the supply chain issues that arose in the first half showed signs of improvement compared with the same quarter of the previous year. The Group gradually resumed supplying products to new customers whose supply had been suspended and expanded its customer base, while increasing the number of cases secured through various sales expansion initiatives for existing customers. As a result, sales to external customers in the United States increased 4.3% year on year in U.S. dollar terms and, after translation into yen, increased 26.8% to ¥6,644 million due to the weaker yen.」

「In the artificial joint products field, combined revenue in Japan and the United States increased 15.7% year on year, comprising increases of 3.7% in Japan and 23.3% in the United States, to ¥6,393 million, as the number of cases secured increased in Japan despite a substantial reimbursement price reduction and U.S. revenue, translated into yen, increased substantially due to the sharp depreciation of the yen. In the osteosynthesis products field, domestic revenue in Japan increased 8.5% year on year to ¥1,922 million, as ASULOCK and Prima Hip Screw sales continued to perform steadily. In the spinal fixation products field, combined revenue in Japan and the United States increased 9.7% year on year to ¥1,614 million, as KMC Kyphoplasty System sales in Japan continued to perform well and Pisces Spinal System sales remained steady.」

「In the spinal fixation products field, combined revenue in Japan and the United States increased 10.2% year on year to ¥827 million, as sales of the KMC Kyphoplasty System in Japan continued to perform well and Pisces Spinal System sales increased.」

「In the artificial joint products field, sales of artificial knee products and other products in the United States recovered, and combined revenue in Japan and the United States increased 15.4% year on year, comprising increases of 4.5% in Japan and 23.9% in the United States, to ¥8,615 million. In the osteosynthesis products field, domestic revenue in Japan increased 10.6% year on year to ¥2,926 million, as ASULOCK and Prima Hip Screw sales continued to perform steadily. In the spinal fixation products field, combined revenue in Japan and the United States increased 21.0% year on year to ¥2,322 million, as KMC Kyphoplasty System sales in Japan continued to perform well.」

「In the artificial joint products field, sales of artificial knee products and other products in the United States recovered, and combined revenue in Japan and the United States increased 16.8% year on year, comprising increases of 4.6% in Japan and 26.1% in the United States, to ¥5,525 million. In the osteosynthesis products field, domestic revenue in Japan increased 9.5% year on year to ¥1,772 million, as ASULOCK sales continued to perform steadily. In the spinal fixation products field, combined revenue in Japan and the United States increased 19.9% year on year to ¥1,471 million, as KMC Kyphoplasty System sales in Japan continued to perform well.」

「In the osteosynthesis products field, domestic revenue in Japan increased 14.3% year on year to ¥867 million, as the supply system for ASULOCK recovered.」

「For new products, the Group began limited-facility sales in Japan during the first half of the new VusionTi 3D Cage in the spinal fixation products field and nationwide sales of the Entrada Hip Stem in the artificial joint products field. It also began limited-facility sales in the third quarter of the new Pisces Spinal System in the spinal fixation products field. In the United States, it expanded nationwide in November 2020, as scheduled, the BKS Revision Sleeves and BKS Revision TibialCones in the artificial joint products field, which had been sold on a limited-facility basis.」

「For new products expected to drive sales expansion in the second half, the Group began limited-facility sales in Japan during the first half of the new Vusion Ti 3D Cage in the spinal fixation products field and began nationwide sales of the new Entrada Hip Stem in the artificial joint products field. During the second half, it plans to begin limited-facility sales as scheduled of the new Pisces Spinal System in the spinal fixation products field and the new FlexThread Clavicle Nail in the osteosynthesis products field. In the United States, it also plans to expand nationwide during the third quarter, as scheduled, sales of the BKS Revision Sleeves and BKS Revision Tibial Cones in the artificial joint products field, which had been sold on a limited-facility basis.」

「In Japan, sales in the spinal fixation products field increased, as the KMC Kyphoplasty System continued to perform well and interbody cage sales grew following the launch of the new Vusion Ti 3D Cage in March this year.」

「To strengthen product development capabilities, the Group aims to expand its business by broadening its product lineup to increase the number of applicable cases, focusing on the development of high-value-added products through joint Japan-U.S. development with its U.S. subsidiary Ortho Development Corporation, hereinafter referred to as ODEV, to differentiate its products from those of competitors, and introducing products and surgical instruments that reflect market needs through the procurement of products expected to enhance the value of its proprietary products and generate synergies.」

「Despite the cost reductions achieved through expanded in-house manufacturing capacity in North America and stronger overseas procurement, the cost of sales ratio was 29.0%, compared with 28.4% in the same quarter of the previous year, due to the decline in the proportion of revenue from proprietary products to 83.3% from 88.0% and the impact of reimbursement price reductions.」

「The Group will identify priority product areas in growth markets, invest actively in addition to strengthening its new-product development capabilities, and strengthen procurement in fields adjacent to orthopedics.」

「The Group will identify priority product areas in growth markets, invest actively in addition to strengthening its new-product development capabilities, and strengthen procurement in fields adjacent to orthopedics.」