Risk of Delays in Commercializing ASAHI Medical Technologies’ Plasma Technology and Goodwill Impairment
First written in FY2021. 4 of 7 entries say "Softened", first in FY2023. Latest entry: FY2025.
The whole theme swung hardest in 2024: 36 of 89 companies on the "Worse" side.
- FY2025MaterialisedAnnual report
「With respect to goodwill and other intangible assets related to the 4 companies 朝日サージカルロボティクス株式会社, Pathways Medical Corporation, Rev1. Engineering, Inc. and Asahi Medical Technologies, Inc., the company recognized impairment losses because, after taking into account the recent business environment and future business plans, it was no longer expected to recover its investment due to declining profitability and other factors.」
Valuation risk related to post-acquisition business plans and progress toward product commercialization materialized, and the company recognized total impairment losses of ¥9,244 million for 4 companies. It also recognized an impairment loss of ¥1,991 million for ASAHI Medical Technologies. - FY2025-H1SoftenedAnnual report
「Goodwill 6,910 6,218 Other 10,048 9,178」
At the end of the interim consolidated accounting period, goodwill was ¥6,218 million and other intangible assets were ¥9,178 million, both down from the end of the previous consolidated fiscal year. Valuation risk related to post-acquisition business plans and progress toward product commercialization remains. - FY2024SoftenedAnnual report
「Goodwill of ¥6,910 million, representing 3.6% of total assets, and ¥7,962 million of other intangible assets, representing 4.2% of total assets, recognized in the group’s consolidated financial statements at the end of the current consolidated fiscal year relate to the 5 companies ASAHI Medical Technologies, Inc., acquired in July 2018, and 朝日サージカルロボティクス株式会社, KARDIA S.R.L., Pathways Medical Corporation and Rev.1 Engineering, Inc., acquired in July 2021.」
Goodwill declined from ¥7,737 million in the previous fiscal year to ¥6,910 million, while other intangible assets declined from ¥8,011 million to ¥7,962 million. Valuation risk remains. - FY2024-Q3SoftenedAnnual report
「Goodwill 7,737 7,065 Other 10,632 9,916」
At the end of the third quarter, goodwill was ¥7,065 million and other intangible assets were ¥9,916 million, both down from ¥7,737 million and ¥10,632 million, respectively, at the end of the previous fiscal year. Valuation risk related to post-acquisition business plans and progress toward product commercialization remains. - FY2023SoftenedAnnual report
「Goodwill of ¥7,737 million, representing 4.5% of total assets, and ¥8,011 million of other intangible assets, representing 4.6% of total assets, recognized in the group’s consolidated financial statements at the end of the current consolidated fiscal year relate to the 5 companies ASAHI Medical Technologies, Inc., acquired in July 2018, and 朝日サージカルロボティクス株式会社, KARDIA S.R.L., Pathways Medical Corporation and Rev.1 Engineering, Inc., acquired in July 2021.」
Goodwill declined from ¥8,200 million in the previous fiscal year to ¥7,737 million, while other intangible assets declined from ¥8,128 million to ¥8,011 million. Valuation risk arising from post-acquisition business plans and progress toward product commercialization remains. - FY2022WorsenedAnnual report
「Goodwill of ¥8,200 million, representing 5.3% of total assets, and other intangible assets of ¥8,128 million, representing 5.2% of total assets, recognized in the group’s consolidated financial statements at the end of the current consolidated fiscal year consist of goodwill and other intangible assets related to ASAHI Medical Technologies, Inc., acquired and made a subsidiary in July 2018, and the 4 companies newly acquired and made subsidiaries during the current consolidated fiscal year: 朝日サージカルロボティクス株式会社, KARDIA S.R.L., Pathways Medical Corporation and Rev1. Engineering, Inc.」
Goodwill increased from ¥2,549 million to ¥8,200 million, while other intangible assets increased from ¥313 million to ¥8,128 million, expanding the assets subject to valuation risk arising from post-acquisition business plans and progress toward product commercialization. - FY2021First statedAnnual report
「Goodwill recognized in the group’s consolidated financial statements at the end of the current consolidated fiscal year includes ¥2,549 million related to US-based ASAHI Medical Technologies, Inc., whose main business is research and development concerning plasma technology, representing 2.2% of total assets. Although the plasma technology has already been established, if difficulties in commercializing the product or significant schedule delays occur during the clinical trial, regulatory application and approval processes, such as a lack of efficacy demonstrated in clinical trials or failure to obtain regulatory approval, the goodwill balance could be materially affected in the following consolidated fiscal year.」
The company recognized ¥2,549 million in goodwill related to ASAHI Medical Technologies and newly specified that failure to demonstrate efficacy in clinical trials, failure to obtain regulatory approval and significant delays in the product commercialization schedule could materially affect goodwill.