Pharma Foods

Basic Information

Stock Code
2929
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Kyoto Prefecture
Establishment Year
September 1997
Listing Year
June 2006
Official Website
https://www.pharmafoods.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Sogo Rin Holdings, Yomeishu Manufacturing, AFC-HD AMS Life Science, Euglena, Base Food, Beauty Garage, Port to Win Holdings, Gumi, Yukes, Morishita Jintan, Axia, Migaro Holdings, iMobile, Double Scope, Riken Keiki, CEC

Overview

Pharma Foods is a Kyoto-based company established in 1997, specializing in health foods and functional ingredients, growing primarily through its functional materials business centered on GABA and mail-order sales.

Current Situation

Pharma Foods continues to grow with its main pillars being the functional materials business and mail-order sales business. For the fiscal year ended July 2016, consolidated net sales were approximately 3.46 billion yen, with net profit at about 25 million yen. The main product, GABA material for foods with functional claims, accounts for the majority of sales, and mail-order sales of self-developed products such as hair growth agents are also performing well. In 2021, it entered into a capital and business alliance with Rohto Pharmaceutical and made Meiji Yakuhin a subsidiary, expanding into the pharmaceutical field. Against the backdrop of the expanding sustainable health food market, demand for foods with functional claims is increasing. The LSI business provides efficacy evaluation testing services to external companies, strengthening its business foundation. In recent years, it has diversified through making Onkyo an equity-method affiliate and sponsorship contracts with the Orix Buffaloes. Moving forward, it will pursue business diversification and growth strategies, riding the tailwinds of increasing demand due to health consciousness and aging, as well as expansion in mail-order sales.

Trivia

Interesting Facts

  • Company name is a coined term derived from English words for pharmaceuticals and food
  • Strong in mail-order sales of hair growth agents and health foods
  • Mid-sized functional food manufacturer headquartered in Saikyo-ku, Kyoto City
  • Involved in Onkyo's reconstruction and made it an equity-method affiliate
  • Plans and broadcasts radio programs such as 'Piyo Piyo Radio'
  • High recognition in the industry for developing functional GABA materials
  • Accelerated product development through capital alliance with Rohto Pharmaceutical
  • Entered pharmaceutical field by acquiring Meiji Yakuhin as subsidiary
  • Turned hair growth agents into hit products via mail-order
  • Contracts efficacy evaluation testing etc. through LSI business

Hidden Connections

  • Strengthened ties with professional baseball as sponsor of Orix Buffaloes
  • Deep collaboration with pharmaceutical industry through capital and business alliance with Rohto Pharmaceutical
  • Deploys regional close-knit promotion through radio programs broadcast on multiple stations for mail-order
  • Researches and develops antibody drug candidate substances in bio-pharmaceutical field
  • As a local Kyoto company, focuses on regional health promotion
  • Pioneered productization of eggshell membrane-derived materials with proprietary technology
  • Expanded business areas through asset succession after Onkyo's bankruptcy
  • Gained market competitiveness through self-branded mail-order focused deployment

Future Outlook

Growth Drivers

  • Expansion of foods with functional claims market
  • Continued growth in mail-order channels
  • Strengthening of health consciousness due to aging society
  • Progress in bio-pharmaceutical R&D
  • Expansion of collaborations with partner companies
  • Success in new material R&D
  • Strengthening of regional brand power
  • Utilization of digital marketing
  • Increasing demand for sustainability-compliant products

Strategic Goals

  • Achieve top-class status in domestic health food market
  • Succeed in new drug creation in pharmaceutical field
  • Double mail-order sales
  • Realize sustainable material development and reduced environmental impact
  • Achieve profitability and expansion in biomedical business
  • Establish diverse sales channels
  • Full-scale entry into overseas markets
  • Strong symbiosis with regional communities
  • Strengthen information dissemination via radio and new media

Business Segments

Functional Materials Supply

Overview
Business segment supplying functional materials for health foods and pharmaceuticals.
Competitiveness
Proprietary GABA manufacturing technology and quality control
Customers
  • Health Food Manufacturers
  • Cosmetics Manufacturers
  • Pharmaceutical Companies
  • Research Institutions
Products
  • Functional GABA Material
  • Eggshell Membrane Extract
  • Functional Peptides
  • Processed Materials

Analysis and Efficacy Evaluation Services (LSI)

Overview
LSI business contracting analysis testing and efficacy evaluation from external companies.
Competitiveness
Specialized technology and long years of evaluation expertise
Customers
  • Food Manufacturers
  • Cosmetics Companies
  • Bio Ventures
  • Universities and Research Institutions
Products
  • Ingredient Analysis
  • Efficacy Evaluation Testing
  • Clinical Testing
  • Test Design Services

Biomedical Research and Development

Overview
Bio R&D business supporting drug discovery and pharmaceutical development.
Competitiveness
Advanced gene technology application capabilities
Customers
  • Pharmaceutical Companies
  • Research Institutions
  • Drug Discovery Ventures
Products
  • Antibody Drug Candidate Substances
  • Test Reagent Development
  • Regenerative Medicine Materials

Mail-Order Business

Overview
Business selling self-branded products through mail-order channels.
Competitiveness
Strong mail-order channels and brands
Customers
  • General Consumers
  • Elderly Segment
  • Beauty and Health-Conscious Segment
Products
  • Hair Growth Agents
  • Health Supplements
  • Beauty Products

Competitive Advantage

Strengths

  • Proprietary GABA manufacturing technology
  • Track record in foods with functional claims market
  • Strength in mail-order channels
  • Diversification into biomedical
  • Stability from capital alliances
  • Proprietary development of eggshell membrane materials
  • Efficacy evaluation service expertise
  • Recognition in hair growth agent field
  • R&D strength based in Kyoto
  • High specialization despite small scale

Competitive Advantages

  • Integrated system from raw materials to products developed in-house
  • Enhanced support through capital and business alliance with major pharmaceutical company
  • Unique product lineup differentiated by functional materials
  • Marketing strength specializing in mail-order
  • Provision of advanced analysis and efficacy evaluation technology
  • Diversified management strategy including pharmaceutical development
  • Accumulated intellectual property and know-how in functional foods
  • Advancing differentiation through sustainable material development
  • Brand penetration via radio and other local media
  • Quick response to rising health consciousness in the market

Threats

  • Risk of changes in regulations for foods with functional claims
  • Intensifying competition in mail-order market
  • Fluctuations in raw material prices
  • Expansion of new competitor entries
  • Diversification and changes in consumer needs
  • High-cost risks in pharmaceutical development
  • Price competition in health food market
  • Business risks from regional concentration
  • Technical challenges in new material development
  • Impact of domestic population decline

Innovations

2022: Onkyo made equity-method affiliate

Overview
Made the bankrupt former Onkyo an equity-method affiliate to expand in the biomedical field.
Impact
Contributes to business diversification and market expansion

2021: Capital and business alliance with Rohto Pharmaceutical

Overview
Alliance with Rohto Pharmaceutical to create synergies in product development and distribution channels.
Impact
Strengthened support in capital and technology aspects

2021: Subsidiary acquisition of Meiji Yakuhin

Overview
Acquired Meiji Yakuhin as a subsidiary to strengthen pharmaceutical development and manufacturing capabilities.
Impact
Established foundation for entry into pharmaceutical business

2020: Improvement of GABA material for foods with functional claims

Overview
Achieved quality improvement of GABA material suitable for foods with functional claims market.
Impact
Improved product competitiveness and increased market share

2023: Brand strengthening through radio media utilization

Overview
Planned and broadcast radio programs mainly in Kansai region to enhance local recognition.
Impact
Contributed to increased mail-order sales

Sustainability

  • Active use of naturally derived materials
  • Introduction of low-environmental-impact manufacturing processes
  • Promotion of functional material research through industry-academia-government collaboration
  • Implementation of health promotion social contribution programs
  • Development of local products and promotion of local production for local consumption