Demand Fluctuations and Customer Concentration in the Generic Drug Market
First written in FY2018. 9 of 16 entries say "Materialised", first in FY2020-Q1. Latest entry: FY2026.
Koa Shoji Holdings moved to the "Worse" side of this theme in 2019.
2 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「As of the end of the fiscal year under review, 11% of trade receivables were due from a particular major customer.」
The concentration of trade receivables from a particular major customer declined from 35% in the previous fiscal year to 11%. In terms of sales performance, Fuso Pharmaceutical Industries, Ltd. accounted for 22.9% of consolidated sales. - FY2026-H1MaterialisedAnnual report
「In the pharmaceutical manufacturing and sales business, sales of prefilled syringe formulations remained firm, while sales of the core tablet products declined due to the entry of competitors and other factors. As a result, sales for the interim consolidated accounting period were ¥4,836 million, down 0.3% year on year, and segment profit was ¥1,339 million, down 3.4%.」
The entry of competing companies reduced sales of the core tablet products and emerged as an actual factor behind declines in interim sales and segment profit in the pharmaceutical manufacturing and sales business. - FY2025WorsenedAnnual report
「As of the end of the fiscal year under review, 35% of trade receivables were due from a particular major customer.」
The concentration of trade receivables from a particular major customer increased from 24% in the previous fiscal year to 35%. - FY2025-H1MaterialisedAnnual report
「In the active pharmaceutical ingredient sales business, sales of active pharmaceutical ingredients for central nervous system drugs and sensory organ drugs increased due to expanded sales of products launched in recent years. Some active pharmaceutical ingredients for antineoplastic drugs also saw higher transaction volumes as customer inventory adjustments were resolved. On the other hand, sales of active pharmaceutical ingredients for topical drugs, other metabolic drugs and cardiovascular drugs declined due to customer inventory adjustments that had continued from the previous fiscal year, the entry of competitors and the timing of customer purchases. As a result, sales for the interim consolidated accounting period were ¥8,012 million, up 1.7% year on year, and segment profit was ¥1,596 million, up 14.1%.」
Sales declines for some active pharmaceutical ingredients due to customer inventory adjustments, the entry of competitors and the timing of customer purchases continued to appear as performance factors during the interim consolidated accounting period. - FY2024WorsenedAnnual report
「As of the end of the fiscal year, 24% of trade receivables were due from a specific major customer.」
The concentration of trade receivables from a particular major customer increased from 23% in the fiscal year ended June 2023 to 24%. The company also explicitly identifies the high dependence of consolidated sales on therapeutic products for kidney diseases, as well as the risk of lower demand resulting from technological innovation in and the emergence of substitute products for those products. - FY2024-Q2MaterialisedAnnual report
「Sales of active pharmaceutical ingredients for cardiovascular drugs and antibiotic preparations declined due to inventory adjustments and other factors at customers. As a result, sales for the cumulative second quarter of the fiscal year under review were ¥7,881 million, down 2.7% year on year.」
Lower demand resulting from customers' inventory adjustments emerged as an actual factor contributing to the decline in sales in the active pharmaceutical ingredient sales business. - FY2023MitigatedAnnual report
「As of the end of the fiscal year under review, 23% of trade receivables were due from a particular major customer.」
The concentration of trade receivables from a particular major customer declined to 23% from the 30.4% reported for FY2021. - FY2021WorsenedAnnual report
「As of the end of the fiscal year under review, 30.4% of trade receivables were due from a particular major customer.」
The concentration of trade receivables from a particular major customer increased to 30.4% from the previous 16.7%. - FY2020-Q3MaterialisedAnnual report
「In the active pharmaceutical ingredient sales business, sales of active pharmaceutical ingredients for lipid-lowering agents and other products continued to decline due to lower demand resulting from inventory adjustments and the entry of competing companies. However, sales increased for antibiotic preparations, hypnotic and sedative agents, alkylating agents and other products. As a result, sales for the cumulative third quarter of the fiscal year under review were ¥7,899 million, down 1.0% from the same period of the previous year.」
Sales declines for some active pharmaceutical ingredients due to lower demand from inventory adjustments and the entry of competing companies continued through the cumulative third quarter, and sales in the active pharmaceutical ingredient sales business declined 1.0% year on year. - FY2020-Q2MaterialisedAnnual report
「In the active pharmaceutical ingredient sales business, sales of antibiotic preparations, hypnotic and sedative agents, alkylating agents and other products increased, continuing the trend seen in the first quarter. However, sales of active pharmaceutical ingredients for lipid-lowering agents and other products declined due to lower demand resulting from inventory adjustments and the entry of competing companies. As a result, sales for the cumulative second quarter of the fiscal year under review were ¥5,278 million, up 3.1% year on year.」
Sales declines for some products due to lower demand from inventory adjustments and the entry of competing companies continued from the first quarter and were cited as actual performance factors. Meanwhile, total sales in the active pharmaceutical ingredient sales business increased 3.1% year on year. - FY2020-Q1MaterialisedAnnual report
「In the active pharmaceutical ingredient sales business, sales of alkylating agents, hypnotic and sedative agents, and anxiolytics increased. However, sales of lipid-lowering agents and other antineoplastic agents declined due to lower demand resulting from inventory adjustments and the entry of competing companies. As a result, sales for the cumulative first quarter of the fiscal year under review were ¥2,204 million, down 5.7% year on year.」
Lower demand resulting from inventory adjustments and the entry of competing companies led to actual quarterly sales declines for some products in the active pharmaceutical ingredient sales business. - FY2019WorsenedAnnual report
「As of the end of the fiscal year under review, 16.7% of trade receivables were due from a particular major customer.」
The concentration of trade receivables from a particular major customer increased from 15.5% in the previous disclosure to 16.7%. - FY2018First statedAnnual report
「Due to the characteristics of its products, the Group has a relatively high degree of dependence on transactions with certain counterparties. Changes in customers' sales strategies, production and inventory adjustments, and other factors may affect the Group's operating results and financial position.」
The company discloses that 15.5% of trade receivables were due from a particular major customer.