PHARMA FOODS INTERNATIONAL CO., LTD. COMPANY RESEARCH AND ANALYSIS REPORT
Pharma Foods International Co., Ltd.
2929
Tokyo Stock Exchange Prime Market
28-May-2024
FISCO Ltd. Analyst
Masanobu Mizuta
FISCO Ltd.
https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
28-May-2024
https://www.pharmafoods.co.jp/en
- Index
■ | 01 | |||||
Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ||||||
1. | Business description | 01 | ||||
2. | Return to profitability in 1H FY7/24 | 01 | ||||
3. | Forecast for FY7/24 revised downward in anticipation of greater decline in profit but this is due to | |||||
temporary factors | 02 | |||||
4. | Creating new markets in the fibers, battery materials, and biostimulant fields as a growth strategy | 02 | ||||
5. | High potential for medium- to long-term growth due to drug discovery, advanced utilization of | 02 | ||||
eggshell membrane materials and other factors | ||||||
.......................................................................................... | ||||||
■ | 03 | |||||
Company profile--------------------------------------------------------------------------------------------------------------------------------------------------------- | ||||||
1. | Company profile | 03 | ||||
2. | History | 04 | ||||
■ | 06 | |||||
Business summary | --------------------------------------------------------------------------------------------------------------------------------------------------- | |||||
1. | A healthcare equipment manufacturer focused on R&D | 06 | ||||
2. | BtoB business | 08 | ||||
3. | BtoC business | 10 | ||||
4. | Bio Medical business | 12 | ||||
5. | Risk factors and challenges and countermeasures | 13 | ||||
■ | 14 | |||||
Results trends | --------------------------------------------------------------------------------------------------------------------------------------------------------------- | |||||
1. | Outline of results for consolidated 1H FY7/24 | 14 | ||||
2. | Trends by business segment | 15 | ||||
3. | Financial condition | 17 | ||||
■ | 18 | |||||
Outlook | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |||||
• Overview of consolidated results forecast for FY7/24 | 18 | |||||
■ | 19 | |||||
Growth strategy | ---------------------------------------------------------------------------------------------------------------------------------------------------------- | |||||
1. | Medium-TermManagement Plan 2026 | 19 | ||||
2. | Creation of new products | 19 | ||||
3. | Creation of new markets | 20 | ||||
4. | Creation of a new organization | 22 | ||||
5. | Shareholder return policy | 22 | ||||
6. | Sustainability management | 23 | ||||
.......................................................................................................................... | ||||||
7. | FISCO's opinion | 24 |
We encourage readers to review our complete legal statement on "Disclaimer" page.
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
28-May-2024
https://www.pharmafoods.co.jp/en
- Summary
A biotechnology company aiming to create pharma foods by fusing pharmaceuticals and foods
Pharma Foods International Co., Ltd. <2929> (hereafter, also "the Company") is a biotechnology company whose basic policy is to conduct business that contributes to people's health by aiming to create "pharma foods" through fusing pharmaceuticals and foods. By focusing on raw ingredients derived from nature and providing proprietary technologies that are based on scientific evidence, it is creating food ingredients that clearly function to improve both health maintenance and QOL (Quality of Life).
1. Business description
With a mission of advancing food and drug research to help people, the Company seeks to realize a sustainable society in which people are happy and healthy. To achieve this goal, it performs research on pharmaceuticals and functional ingredients that act on immunity, aging, and the nervous system, and broadly provides its proprietary research results and products to society in three business: the BtoB business; BtoC business; and Bio Medical business. The BtoB business manufactures and sells functional ingredient products such as PharmaGABA®, and through Meiji Yakuhin Co., Ltd., which was made into a subsidiary in August 2021, it manufactures and sells pharmaceutical and non-pharmaceutical products. The BtoC business conducts e-commerce sales and wholesale distribution of supplements, non-pharmaceutical products, and cosmetics that blend the Company's proprietary functional ingredients, including Newmo® Hair Growth Formula, a hair restoration and new growth stimulant. The Bio Medical business is involved in drug discovery using ALAgene® technology, the Company's proprietary technology for producing antibodies from chickens, and also provides a proteome analysis service. Furthermore, as a new domain, the Company is aiming to create a new market through the advanced utilization of eggshell membranes.
2. Return to profitability in 1H FY7/24
In the Company's 1H FY7/24 consolidated results, net sales decreased 9.9% year on year (YoY) to ¥31,652mn, operating profit was ¥1,535mn (versus a loss of ¥883mn YoY), ordinary profit was ¥1,542mn (versus a loss of ¥912mn), and profit attributable to owners of parent was ¥768mn (versus a loss of ¥914mn). Despite steady sales growth in the BtoB business, net sales decreased overall due to the impact of a decline in operating rates at contracted production partners and manufacturing delays caused by distribution restrictions at raw materials suppliers in the BtoC business. On the other hand, the Company returned to profitability for each type of profit as advertising expenses decreased considerably due to the postponement of advertising activities for new products in the BtoC business. Looking at quarterly results, 1Q net sales were ¥16,142mn and operating profit was ¥601mn, and 2Q net sales were ¥15,510mn and operating profit was ¥933mn. Since 2Q FY7/23, the Company has been steadily recording operating profits as a result of efforts such as the optimization of advertising investment.
We encourage readers to review our complete legal statement on "Disclaimer" page.
01
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Summary
3. Forecast for FY7/24 revised downward in anticipation of greater decline in profit but this is due to temporary factors
On March 11, 2024, the Company revised its FY7/24 consolidated results downward and it is now projecting net sales to decrease by 6.5% YoY to ¥64,100mn, operating profit to decrease 25.2% to ¥2,700mn, ordinary profit to drop 18.1% to ¥2,900mn, and profit attributable to owners of parent to fall 41.6% to ¥1,800mn. In contrast to initial forecasts, net sales are now expected to decrease, compounding the decline in each type of profit. Although the BtoB business is expected to perform fairly steadily, in the BtoC business, the impact of the decline in operating rates at contracted production partners and manufacturing delays caused by distribution restrictions at raw materials suppliers that manifested in 1H is expected to delay plans for the full-scale promotion of new products such as NEW Z. However, at FISCO, we see this downward revision as the result of temporary factors in 1H, and taking into account that the Company is expected to begin the full-scale promotion of its new products in 2H and that it is making progress on controlling its advertising expenses, there is room for upside in the revised forecasts.
4. Creating new markets in the fibers, battery materials, and biostimulant fields as a growth strategy
In its Medium-Term Management Plan 2026 (FY7/22-FY7/26), the Company has established "new value creation 1K" as a goal, and through initiatives to create new value (new products, new markets, and a new organization), seeks to be a company with net sales of ¥100.0bn by FY7/26. Looking at a breakdown of this goal, it is targeting ¥70.0bn in growth from existing businesses and ¥30.0bn from new value creation, and it has committed to an average net sales growth rate of 20% or higher and a 20% total payout ratio, including share buybacks, through to FY7/26. Regarding profit levels, the Company will conduct business development through FY7/26 without concern over a decline in profit margin each year and intends to expand in scale while boldly taking on risk. Through this, it is aiming to create a structure that can secure an average operating profit margin of 10%. To create an upcycling market for unused resources, the Company will aim to create new markets in the fibers, battery materials, and biostimulant* fields by harnessing unused natural ingredients and realizing the advanced utilization of eggshell membranes. In February 2024, it officially agreed on and launched a five-year R&D project as part of the "Bio Manufacturing Revolution Promotion Project Research and Development Plan" promoted by the New Energy and Industrial Technology Development Organization (NEDO), a national research and development organization.
- Biostimulant. A new technology that reduces damage to plants caused by climate and soil conditions and provides healthy plants by controlling abiotic stress on plants (quoted from the website of the Japan Biostimulant Association).
5. High potential for medium- to long-term growth due to drug discovery, advanced utilization of eggshell membrane materials and other factors
The Company is a biotechnology company that practices development based on the concept that immunity, aging, and the nervous system are three important elements in life activity and health maintenance. At FISCO, we have a high opinion of its development capabilities, from its exploration of functional ingredients and development of functional products to its creation of new markets through drug discovery and the advanced utilization of eggshell membrane materials, and we think it has strong medium- to long-term growth potential. Another factor to be evaluated is the Company's commitment to strengthening dialogue with the stock market and investors as part of its efforts to enhance corporate value. Going forward, we will be monitoring the progress of its "Bio Manufacturing Revolution Promotion Project Research and Development Plan" (fibers, battery materials, and biostimulants) efforts following its agreement with NEDO and the Autoimmune Disease Project based on an exclusive licensing agreement with Mitsubishi Tanabe Pharma Corporation.
We encourage readers to review our complete legal statement on "Disclaimer" page.
02
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Summary
Key Points
- A biotechnology company aiming to create pharma foods by fusing pharmaceuticals and foods
- Return to profitability in 1H FY7/24
- Forecast for FY7/24 revised downward in anticipation of greater decline in profit but this is due to temporary factors
- Creating new markets in the fibers, battery materials, and biostimulant fields as a growth strategy
- High potential for medium- to long-term growth due to drug discovery, advanced utilization of eggshell membrane materials and other factors
Results trends
(¥mn) | Net sales (left) | Operating profit (right) | (¥mn) | ||||||||||
68,572 | |||||||||||||
70,000 | 7,000 | ||||||||||||
64,100 | |||||||||||||
60,000 | 5,673 | 60,185 | 6,000 | ||||||||||
50,000 | 5,000 | ||||||||||||
3,610 | |||||||||||||
40,000 | 4,000 | ||||||||||||
46,752 | |||||||||||||
30,000 | 2,700 | 3,000 | |||||||||||
1,080 | |||||||||||||
20,000 | 15,353 | 2,000 | |||||||||||
10,532 | |||||||||||||
10,000 | 1,000 | ||||||||||||
576 | 740 | ||||||||||||
0 | 0 | ||||||||||||
FY7/19 | FY7/20 | FY7/21 | FY7/22 | FY7/23 | FY7/24 E | ||||||||
Note: FY7/24 E value is from the revised forecast released on March 11, 2024
Source: Prepared by FISCO from the Company's financial results
- Company profile
Creates food ingredients that clearly function to improve both health maintenance and QOL
1. Company profile
The Company is a biotechnology company whose basic policy is to conduct management that contributes to people's health by aiming to create "pharma foods" by fusing pharmaceuticals and foods. With a development concept of immunity, aging, and the nervous system, three important elements in life activity and health maintenance, the Company examines everyday foods and ingredients like eggs, milk, green tea, rice, and lactic acid bacteria for components that act on these three elements, and by providing proprietary technologies and products based on scientific evidence, it creates food ingredients that clearly have functions helpful to health maintenance and enhancing quality of life (QOL).
We encourage readers to review our complete legal statement on "Disclaimer" page.
03
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Company profile
At the end of 1H FY7/24, the location of the Company's headquarters was in Nishikyo Ward, Kyoto City, and the Pharma Foods International Group consisted of the Company, its five consolidated subsidiaries (PharmaFoods Communication Inc., FUTURE LABO Inc., medi-labo, Meiji Yakuhin Co., Ltd., and PF Capital Co., Ltd.) and two equity -method affiliates (Benart Co., Ltd. and Onkyo Corporation). PharmaFoods Communication conducts call center operations for the BtoC business, and FUTURE LABO and medi-labo sell cosmetics and Meiji Yakuhin manufactures and sells pharmaceuticals and non-pharmaceutical products. PF Capital Co., Ltd. (which became a subsidiary following acquisition of the CVC operating company in May 2022) manages the PF Visionary Fund, a limited liability investment partnership established in January 2023. At the end of 1H FY7/24, total assets were ¥37,020mn, net assets were ¥9,202mn, the equity ratio was 24.9%, and the number of issued shares was 29,079,000 shares (including 1,006,767 treasury shares).
2. History
The Company was established as Pharma Foods Research Co., Ltd. in September 1997 in order to develop and sell functional food ingredients, and then changed its trade name to Pharma Foods International Co., Ltd. in October 2004. Regarding the functional ingredient products, sales of the GABA-containing ingredient PharmaGABA® began in September 2001, the e-commerce sales brand Tamagokichi® and the Tamagosamin® with iHA® formulation supplement were launched in August 2012, and Newmo® Hair Growth Formula, a non-pharmaceutical product formulated with HGP® (Hair Growth Peptide), was launched in December 2018.
In M&As and alliances, the Company concluded capital and business alliance agreements with Sanyo Chemical Industries, Ltd. <4471> in March 2021, and with ROHTO Pharmaceutical Co., Ltd. <4527> in July 2021, respectively. In August 2021, it invested in Ai-BrainScience Inc., which develops a cognitive function diagnosis app, while it also made a wholly owned subsidiary of Meiji Yakuhin. In December 2021, it concluded a business alliance agreement with Onkyo Corporation (made an equity-method affiliate in May 2022 through third-party allocation of shares) and entered the hearing aid business.
The Company obtained the bioscience business (proteome analysis business) of Intégrale Co., Ltd., which possesses top-level results and technological capabilities in protein analysis in Japan, via an absorption-type split in April 2022. Additionally, in July 2022, it made joint investments with ENEOS Holdings, Inc. <5020> in ENEGGO Inc., which manufactures liquid fertilizers derived from eggs. The Company concluded a memorandum of understanding in December 2022 regarding the establishment of a joint venture involving three companies with respect to a health food factory in Vietnam. The joint venture consists of the Company, FPT Digital Retail Joint Stock Company ("FRT"), owner of Vietnam's major pharmacy chain Long Chau Pharmacy, and Sato Connect Gate Joint Stock Company by VTM Group ("SCG").
In March 2023, the Company concluded a capital and business alliance agreement with LB Co., Ltd., which has strengths in manufacturing yogurt and lactic acid beverages (underwriting of third-party allocation of class A preferred shares), while in July 2023 the Company concluded a business tie-up with Takara Bio Inc. <4974>, and in September 2023 the Company took over the healthcare e-commerce business of Daicel Corporation <4202>.
Regarding shares, the Company listed shares on the Tokyo Stock Exchange (TSE) Mothers Market in June 2006, switched to the TSE Second Section in December 2016, and moved to the TSE First Section in February 2021. It transitioned to the Prime Market accompanying the change in TSE market categories in April 2022.
We encourage readers to review our complete legal statement on "Disclaimer" page.
04
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Company profile
History
Date | Event |
September 1997 Pharma Foods Research Co., Ltd. was established in order to develop and sell functional food ingredients
May 2001 Market launched Ovopron®, a helicobacter pylori chicken egg antibody
September 2001 Market launched PharmaGABA®, an ingredient containing GABA
October 2003 Market launched Pharma Foods Delicious CatechinTM, an ingredient containing catechin
October 2004 Changed trade name to Pharma Foods International Co., Ltd.
March 2005 Market launched PF Alpha Lipoic AcidTM, an ingredient containing alpha lipoic acid
June 2006 Listed on the TSE Mothers Market
October 2006 Market launched Runpep®, an egg white peptides ingredient
April 2007 Established Hiroshima Bio Medical Co., Ltd. in order to conduct an R&D business in the field of blood purification therapy using
chicken egg antibodies and to conduct a business for test drugs and reagents (Company's investment ratio: 49%)
February 2012 Launched the e-commerce business
July 2012 Market launched iHA®, a hyaluronic acid production-stimulating ingredient
Invested in and made an affiliate of Benart Co., Ltd., which conducts a solar power generation business, in order to enter the renewable energy field (Company's ratio of shareholding: 33.3%)
August 2012 Market launched the e-commerce sales brand Tamagokichi® and Tamagosamin with iHA®
October 2012 Sold some of its shares of Benart (Company's ratio of shareholding: 50%, currently an equity-method affiliate)
September 2013 For the fully fledged development of the drug discovery business, conducted an absorption merger of Hiroshima Bio Medical and established the Bio Medical Department
September 2014 Opened the Company's own call center for the Tamagokichi® e-commerce sales brand
May 2015 Acquired the ISO 9001 quality management system certification
August 2015 Established PharmaFoods Communication Inc. to conduct call center operations for health foods and cosmetics (made a wholly owned subsidiary in December 2018, currently a consolidated subsidiary)
November 2016 To expand the e-commerce business, made FUTURE LABO Inc. a subsidiary (currently a consolidated subsidiary)
December 2016 Listing was changed to the TSE Second Section
October 2018 Concluded a joint research agreement with Mitsubishi Tanabe Pharma Corporation for antibody pharmaceuticals indicated for the treatment of autoimmune diseases
December 2018 Market launched Newmo® Hair Growth Formula, a non-pharmaceutical product formulated with HGP®
January 2021 Concluded an exclusive licensing agreement with Mitsubishi Tanabe Pharma for a new therapeutic antibody to treat autoimmune diseases
February 2021 Listing was upgraded to the TSE First Section
March 2021 Concluded a capital and business alliance agreement with Sanyo Chemical Industries <4471>
July 2021 Concluded a capital and business alliance agreement with ROHTO Pharmaceutical <4527>
August 2021 Invested in Ai-BrainScience Inc., which is developing a cognitive function diagnostic app
Made a wholly owned subsidiary of Meiji Yakuhin Co., Ltd., which manufactures and sells pharmaceuticals and non- pharmaceutical products
September 2021 Formulated the Agriculture and Nutrition Basic Plan with Sanyo Chemical Industries
December 2021 Concluded a business alliance agreement with Onkyo Corporation and entered the hearing aid business Entered a new upcycle business using eggshell membranes
April 2022 Obtained the bioscience business of Intégrale Co., Ltd. via an absorption-type split
Transitioned to the Prime Market accompanying the change in TSE market categories
May 2022 Made Onkyo an equity-method affiliate
July 2022 Received third-party allocation ENEGGO shares jointly with ENEOS Holdings <5020>
December 2022 Concluded memorandum of understanding related to establishment of a three-company joint venture with respect to a health food factory in Vietnam, between the Company, FRT, and SCG
January 2023 Established PF Visionary Fund, a limited liability investment partnership
March 2023 Concluded a capital and business alliance agreement with LB Co., Ltd.
July 2023 Business alliance with Takara Bio
September 2023 Took over the healthcare e-commerce business of Daicel Corporation
November 2023 First company in Japan to acquire international ISO/IEC 17025 certification regarding chemical testing of GABA ingredients
January 2024 Started sales of K-3, a liquid lactobacillus ferment containing GABA, as the first biostimulant agricultural material
February 2024 ovoveil, a next-generation sustainable fiber, used in Kyoto University Program-Specific Professor Naoko Tosa's Fall/Winter Collection
Agreement on the "Bio Manufacturing Revolution Promotion Project Research and Development Plan" concluded with NEDO
Source: Prepared by FISCO from the Company's securities report and press releases
We encourage readers to review our complete legal statement on "Disclaimer" page.
05
24
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
28-May-2024
https://www.pharmafoods.co.jp/en
- Business summary
A healthcare equipment manufacturer focused on R&D that develops BtoB business, BtoC business, and Bio Medical business
1. A healthcare equipment manufacturer focused on R&D
With a mission of advancing food and drug research to help people, the Company seeks to realize a sustainable society in which people are happy and healthy. To achieve this goal, it researches and develops functional ingredients and pharmaceuticals that act on immunity, aging, and the nervous system, and then delivers the results of this original research and products to wider society through its BtoB, BtoC, and Bio Medical businesses. The BtoB business manufactures and sells functional ingredient products such as PharmaGABA®, and it also manufactures and sells pharmaceutical and non-pharmaceutical products through Meiji Yakuhin Co., Ltd., which was made into a subsidiary in August 2021. The BtoC business conducts e-commerce sales and the wholesale distribution of supplements, non-pharmaceutical products, and cosmetics that blend the Company's proprietary functional ingredients, including Newmo® Hair Growth Formula, a hair restoration and new growth stimulant. The Bio Medical business is involved in drug discovery using ALAgene® technology, the Company's proprietary technology for producing antibodies from chickens, and also provides a proteome analysis service. Furthermore, as a new domain, the Company is aiming to create a new market through the advanced utilization of eggshell membranes.
Development of pharmaceuticals and functional ingredients that act on immunity, aging, and the nervous system
Source: The Company's results briefing materials
In the BtoB business, there has been an increase in the number of companies adopting functional ingredients such as PharmaGABA®, and Meiji Yakuhin has been steadily growing its contributions since becoming a subsidiary in FY7/22. In the BtoC business, there have been contributions from Newmo® Hair Growth Formula, which was launched on the market in November 2018, as well as Meiji Yakuhin's Shiboranaito® GOLD since FY7/22, and the new eyelash beauty serum Eyelash Deluxe WMOA and medicated whitening gel DRcula series since FY7/23. The Bio Medical business is still at the research and development stage but it is recording lump-sum income related to joint research and licensing sales.
We encourage readers to review our complete legal statement on "Disclaimer" page.
06
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Business summary
Trends in net sales by business segment
(¥mn) | BtoB business | BtoC business | Bio Medical business | ||||||||||
70,000 | 68,572 | ||||||||||||
343 | |||||||||||||
60,185 | |||||||||||||
60,000 | 46,752 | 220 | |||||||||||
50,000 | |||||||||||||
375 | |||||||||||||
40,000 | |||||||||||||
59,788 | |||||||||||||
51,886 | |||||||||||||
30,000 | |||||||||||||
43,524 | |||||||||||||
20,000 | 15,353 | 186 | |||||||||||
10,532 | |||||||||||||
10,000 | 231 | 12,591 | |||||||||||
8,523 | |||||||||||||
2,852 | 8,079 | 8,418 | |||||||||||
1,777 | 2,575 | ||||||||||||
0 | |||||||||||||
FY7/19 | FY7/20 | FY7/21 | FY7/22 | FY7/23 | |||||||||
Note: Segment classifications and names changed as of FY7/22. The Accounting Standard for Revenue Recognition, etc. applied as of FY7/22
Source: Prepared by FISCO from the Company's financial results
Trends in operating profit by business segment
BtoB business | BtoC business | Bio Medical business | ||
(¥mn)
7,000 | ||||||||
81 | ||||||||
6,000 | ||||||||
5,000 | ||||||||
4,000 | ||||||||
5,575 | 3,746 | |||||||
3,000 | ||||||||
2,000 | 638 | |||||||
21 | 573 | |||||||
1,000 | ||||||||
288 | 1,660 | 1,301 | ||||||
713 | 799 | 770 | ||||||
0 | ||||||||
-45 | -231 | -278 | ||||||
-1,000 | ||||||||
FY7/19 | FY7/20 | FY7/21 | FY7/22 | FY7/23 | ||||
Note: Segment classifications and names changed as of FY7/22. The Accounting Standard for Revenue Recognition, etc. applied as of FY7/22
Source: Prepared by FISCO from the Company's financial results
We encourage readers to review our complete legal statement on "Disclaimer" page.
07
24
COMPANY RESEARCH AND ANALYSIS REPORT
FISCO Ltd. https://www.fisco.co.jp
Pharma Foods International Co., Ltd.
2929 Tokyo Stock Exchange Prime Market
28-May-2024
https://www.pharmafoods.co.jp/en
Business summary
Mainstay BtoB business product PharmaGABA® holds top share in GABA production. Contributions also made by Meiji Yakuhin's CMO and CHC businesses
2. BtoB business
The BtoB business handles the R&D and manufacturing of functional ingredients, health foods, pharmaceuticals, and other products and sells them to food and pharmaceutical manufacturers, distributors, and others. The Company's main functional ingredient products include PharmaGABA®, Bonepep®, Cerepron®, Runpep®, Pharma Biomix, and HGP®. In functional products, in addition to the conventional OEM and cross-bordere-commerce, from FY7/23 Meiseki Lab and other NB products are being sold in the BtoB channel. Among functional ingredients, PharmaGABA® is trending upward and the Company is strengthening sales channels for its new brand (NB) products in its functional ingredient products. Additionally, from 2Q FY7/22, as new manufacturing and sales channels, the Company is carrying out Meiji Yakuhin's CMO business of contract manufacturing of pharmaceutical products and CHC business*, which sells functional foods, pharmaceuticals, and other products in the drugstore channel and elsewhere. Looking at FY7/23 net sales on an itemized basis, net sales of functional ingredients were ¥2,002mn, sales of functional products were ¥1,368mn, sales of Meiji Yakuhin's CMO were ¥4,190mn, while sales of CHC were ¥857mn. Additionally, Meiji Yakuhin orders are increasing steadily, so in the future the Company aims to evolve into a pharmaceutical (OTC drug) manufacturer rather than just contract manufacturer of pharmaceuticals, and to this end it plans to construct a new factory (scheduled to start operation in five years as registration for manufacturing is required).
-
Abbreviation for consumer health care (refers to selling pharmaceuticals, functional foods, and other products at drugstores)
Searching for food and cosmetic functional ingredients from eggs
Source: The Company's results briefing materials
We encourage readers to review our complete legal statement on "Disclaimer" page.
08
24
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Pharma Foods International Co. Ltd. published this content on 28 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 May 2024 07:30:04 UTC.
