Nihon Chozai

Basic Information

Stock Code
3341
Industry
Retail
Category Detail
Specialty Stores & Drugstores
Prefecture
Tokyo
Establishment Year
March 1980
Listing Year
September 2004
Official Website
https://www.nicho.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Pharmarise Holdings, Quoll HD, Cosmos Pharmacy, Medical Ikkō Group, F&F, Medical System Network, Sumitomo Pharma, GMO Internet, Mia Herusa Holdings, ＨＹＵＧＡ　ＰＲＩＭＡＲＹ　ＣＡＲＥ, Ain Holdings, Sapporo Clinical Laboratory Center

Overview

Nihon Chozai is a major insurance-dispensing pharmacy chain founded in 1980, an industry-leading company with strengths in nationwide expansion and IT utilization.

Current Situation

Nihon Chozai is a major dispensing pharmacy chain with consolidated sales of approximately 340.3 billion yen and approximately 5,864 employees for the fiscal year ended March 2024. It operates stores in all prefectures nationwide, with about 60% being front-of-large-hospital pharmacies, possessing high competitiveness. It has developed its own e-learning system and online medication guidance system utilizing IT, enhancing education and service quality. It focuses on generic drug supply, achieving an average usage rate of approximately 89.3%. In its long-term Vision 2035 announced in September 2024, it aims to achieve ROE of 15% and an annual sales growth rate of over 10%. It promotes sustainability management and is proactive in environmental initiatives and governance strengthening. In recent years, it has focused on subsidiary reorganizations, introduction of new technologies, and other business developments.

Trivia

Interesting Facts

  • Founded in Sapporo City in 1980.
  • Dispensing pharmacy stores established in all prefectures nationwide.
  • Oishio Techo Plus app membership exceeded 2 million in August 2024.
  • First in the dispensing pharmacy industry to have a specialized pharmacist staffing company in the group.
  • Acquired Japan's first dispensing pharmacy 'Mizuno Pharmacy' as a subsidiary.
  • Self-developed and operates online medication guidance system NiCOMS.
  • Holding nationwide in-house academic conferences since 2016.
  • Generic drug usage rate of approx. 89.3%, a high level.
  • Long-term Vision 2035 targets ROE 15% and sales growth rate over 10%.
  • Self-developed business systems enabling efficient operations.

Hidden Connections

  • Nihon Generic acquired Choseido Pharmaceutical as a subsidiary, strengthening in-group manufacturing.
  • Business alliance with Dai-ichi Life Group to promote store operations linked with insurance.
  • JP Learning is used by pharmacists outside the industry, contributing to technology dissemination.
  • 7 Nihon Chozai stores certified under Yokosuka City's generic pharmacy recommendation program.
  • Pioneered acquisition of online medication guidance approval, deploying advanced services.
  • Attention to industry trends promoting convenience store sales of OTC drugs following Pharmaceutical Affairs Law amendment.
  • Head office in Minato Ward Tamachi Tower symbolizes fusion of medical and IT.
  • 'Oishio Techo Plus' app has not only medication information but also pharmacy linkage functions.

Future Outlook

Growth Drivers

  • Expansion of dispensing pharmacy demand accompanying aging society
  • Service innovation through IT utilization such as online medication guidance
  • Promotion of generic drug adoption and cost reduction needs
  • Investment in pharmacist specialization improvement and education
  • Improvement of social evaluation through sustainability management
  • New business development in medical-nursing collaboration field
  • Strengthening of patient base through community-based stores
  • Revenue stabilization through diversified medical-related businesses
  • Business opportunities expansion accompanying deregulation and legal amendments
  • Growth of digital services such as health management apps

Strategic Goals

  • Sustainable achievement of annual sales growth rate over 10%
  • Improvement in capital efficiency to ROE 15%, ROIC 15%
  • Realization of consolidated operating profit from 40 billion to 50 billion yen
  • Nationwide expansion of online medication guidance services
  • Maintenance and improvement of generic drug usage rate over 90%
  • Deepening of ESG management emphasizing sustainability
  • Further strengthening of pharmacist education and training system
  • Sustainable improvement in operational efficiency through IT utilization
  • Strengthening of community medical collaboration and creation of new services
  • Revenue expansion of diversified medical-related businesses

Business Segments

Dispensing Pharmacy Operation Support

Overview
Provides various support and services for dispensing pharmacy operations to medical institutions.
Competitiveness
Efficiency through front-of-hospital pharmacy expertise and IT utilization
Customers
  • Major hospitals
  • Regional hospitals
  • Clinics
  • Medical offices
Products
  • Dispensing service operations
  • Staffing dispatch
  • IT system provision
  • Education and training support

Generic Drug Manufacturing and Sales

Overview
Manufactures high-quality generic drugs and supplies them within and outside the group.
Competitiveness
High generic usage rate and manufacturing expertise
Customers
  • Pharmacy chains
  • Hospitals
  • Drugstores
  • Medical wholesalers
Products
  • Generic drug manufacturing
  • Quality control
  • Sales support

Medical Staffing Services

Overview
Provides dispatch and introduction services for medical professionals.
Competitiveness
Dedicated staffing network strong in the dispensing pharmacy industry
Customers
  • Pharmacies
  • Hospitals
  • Nursing facilities
  • Medical-related companies
Products
  • Pharmacist dispatch
  • Nurse dispatch
  • Paramedical staffing services

Medical Information and Consulting

Overview
Deploys information analysis and management support services for the medical industry.
Competitiveness
Specialized knowledge and pharmacist perspective strengths
Customers
  • Medical institutions
  • Pharmaceutical companies
  • Insurance associations
  • Medical-related organizations
Products
  • Information provision services
  • Management consulting
  • Training programs

Competitive Advantage

Strengths

  • Nationwide dispensing pharmacy network
  • Dispensing and education systems utilizing IT
  • High generic drug usage rate
  • Strong pharmacist training system
  • Diversified medical-related business portfolio
  • Superior location strategy for front-of-hospital pharmacies
  • Long-term sustainability management
  • Abundant industry knowledge and experience
  • Proprietary online medication guidance system
  • High customer satisfaction and trust

Competitive Advantages

  • Broad service network through dispensing pharmacy stores in all prefectures
  • Achieves pharmacist skill improvement through in-house e-learning and other education systems
  • Efficient store operations via self-developed IT systems
  • Vertically integrated model with generic drug manufacturing and sales subsidiaries
  • Service differentiation through early introduction of online medication guidance
  • Wide coverage of medical-related areas with abundant subsidiaries
  • Sustainable management goals and ESG-focused stance
  • Clear growth strategy through Long-term Vision 2035
  • Strong pharmacy network in front of major medical institutions
  • Human resource strengthening through support for specialist pharmacist certifications

Threats

  • Risk of Ministry of Health, Labour and Welfare dispensing fee revisions
  • Reorganization by competitors and large-scale capital entry
  • Difficulty in securing talent due to pharmacist shortage
  • Pressure to lower drug prices
  • Increased operational burden from strengthened regulations
  • Industry structure changes due to online and AI
  • Impact from new infectious diseases and social conditions
  • Market saturation and store opening restrictions by region
  • Revenue decline due to medical cost reduction pressure
  • Brand risk from quality issues

Innovations

2024: Announcement of Long-term Vision 2035

Overview
Long-term strategy targeting ROE 15% and annual sales growth over 10%.
Impact
Aims to accelerate medium- to long-term growth and enhance corporate value.

2023: App Membership Exceeds 2 Million

Overview
Significant increase in Oishio Techo Plus membership, strengthening user base.
Impact
Improves customer engagement and medication management.

2020: Self-Developed Online Medication Guidance System

Overview
Launched NiCOMS operations at stores nationwide, strengthening non-face-to-face services.
Impact
Enhances patient convenience and service diversification.

2021: Choseido Pharmaceutical Share Transfer Reorganization

Overview
Implemented subsidiary reorganization to improve compliance issues and strengthen quality control.
Impact
Improved subsidiary compliance and restored trust.

2024: Expansion of Self-Developed E-Learning JP Learning

Overview
Nationwide deployment of e-learning system to improve pharmacist knowledge and skills.
Impact
Elevates pharmacist education standards and contributes to the industry.

Sustainability

  • Promotion of climate change response and energy-saving activities
  • Resource circulation enhancement through circular economy promotion
  • Employee satisfaction and growth promotion through human capital management
  • Establishment of robust corporate governance structure
  • Participation in community medical and health promotion social contribution activities
  • Advancement of gender diversity
  • Expansion of low-environmental-impact products and services
  • Regular publication of sustainability reports
  • Thorough compliance and ethical conduct
  • Maintenance and expansion of Health Management Excellence Corporation certification