Hisamitsu Pharmaceutical

Basic Information

Stock Code
4530
Industry
Pharmaceuticals
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Saga Prefecture
Establishment Year
May 1944
Listing Year
September 1962
Official Website
https://www.hisamitsu.co.jp/
TSE Information
TSE Information
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Other Companies
Kyowa Kirin, Takeda Pharmaceutical, Astellas Pharma, Shionogi, Chugai Pharmaceutical, Eisai, Ono Pharmaceutical, Santen Pharmaceutical, Daiichi Sankyo, Otsuka Holdings, Amano

Overview

Hisamitsu Pharmaceutical is a pharmaceutical manufacturer founded in 1944, recognized as the industry leader in topical analgesic and anti-inflammatory agents both domestically and internationally.

Current Situation

In the fiscal year ended February 2022, Hisamitsu Pharmaceutical recorded consolidated net sales of 120.1 billion yen, ordinary income of 12.6 billion yen, and net income of 9.6 billion yen, maintaining a stable financial base. It holds a high market share in the topical analgesic and anti-inflammatory market with its flagship Salonpas series and other products. The company is actively entering the prescription pharmaceutical market, with its Morus series gaining support in medical institutions. Research and development is centered in Tosu City, Saga Prefecture, and recently enhanced by a new R&D facility at Shonan Health Innovation Park in Fujisawa City, Kanagawa Prefecture, promoting innovation. From ESG and sustainability perspectives, it has established the 'HELLO! eco!' label to advance environmentally considerate product development. Considering the maturity of the domestic market, it is strengthening overseas expansion and, in 2023, became an official TEAM JAPAN partner to enhance its brand through sports support. Recently, it has diversified by making its mail-order business a subsidiary. Moving forward, it plans to pursue growth strategies leveraging its R&D capabilities and brand strength, balancing stable pharmaceutical supply with social contributions.

Trivia

Interesting Facts

  • 'Salonpas' is a long-seller launched in 1934.
  • The company emblem 'small' derives from the founding name 'Komatsuya'.
  • The Salonpas neon sign at Shibuya Scramble Crossing is famous.
  • Hisamitsu Pharmaceutical boasts stable dividends and performance since listing.
  • It is a family-owned business, with representatives from the Nakatomi family.
  • The sound logo 'Hi-Sa-Mi-Tsu' is registered as a sound trademark.
  • It sponsors the Hisamitsu Springs women's volleyball team in the sports world.
  • Mail-order business separated as a subsidiary to enhance specialization.
  • Owns multiple laboratories and factories domestically, with integrated production and research.
  • Has entered Asian countries and established local subsidiaries.
  • Actively acquires intellectual property rights, maintaining competitiveness through patents.
  • Invests in cable TV and radio stations for local communities.
  • Possesses long-term accumulation of technology and market know-how in pharmaceuticals.
  • Contributes to regional employment creation as a local Saga company.
  • Acquired SS Pharmaceutical's prescription business in 2005 for expansion.

Hidden Connections

  • Hisamitsu Pharmaceutical, as a member of the Sanwa Group, implements capital and technology collaboration through multiple related companies.
  • Distant relations with Kobayashi Pharmaceutical and Ryukakusan, with unique bonds in the industry as family-owned pharmaceutical companies.
  • Utilizes sports market to expand 'Salonpas' brand, major sponsor of J.League Sagan Tosu.
  • Operates joint venture 'Maruto Industry' with proprietary packaging technology leveraging product characteristics.
  • Served as official sponsor for Tokyo Olympics and Paralympics, contributing to enhanced social credibility.
  • Mail-order business specialized as Hisamitsu Wellness, strengthening customer touchpoints.
  • Tosu City, Saga Prefecture, hosts headquarters and factories, strongly influencing local economy.
  • Roots in Kampo-derived products, successfully modernizing traditional pharmaceutical technology.

Future Outlook

Growth Drivers

  • Stable demand for topical analgesic and anti-inflammatory agents in domestic and international markets
  • Expansion of demand for chronic pain treatment products due to aging society
  • New customer acquisition through strengthened mail-order and EC channels
  • Overseas market expansion plans centered on China and Southeast Asia
  • Product differentiation and high value-added through new technologies
  • Strengthened brand collaboration utilizing sports sector
  • Sustainable growth through environmentally considerate product development
  • Expansion via new prescription pharmaceutical formulations
  • Efficient promotion through digital marketing
  • Entry into new fields through strengthened R&D system

Strategic Goals

  • Maintain over 70% domestic share in topical analgesic and anti-inflammatory market
  • Expand overseas sales ratio to over 30%
  • Grow mail-order business sales to twice current level
  • Achieve 80% recyclability rate for packaging materials to reduce environmental impact
  • Realize over 10 billion yen in annual sales from new prescription products
  • Achieve industry top-level ESG investment evaluation
  • Promote diverse social contribution activities in collaboration with local communities
  • Continuous improvement of customer experience using digital technology
  • Implement sustainable human resource development and diversity promotion
  • Increase annual R&D investment to over 5% of sales

Business Segments

Products for Medical Institutions

Overview
Provides prescription drugs and equipment used in medical settings.
Competitiveness
High quality and reliability in prescription drugs
Customers
  • Hospitals
  • Clinics
  • Pharmacies
  • Pharmaceutical wholesalers
Products
  • Transdermal analgesic and anti-inflammatory agents
  • Antifungal topicals
  • Medical supporters

OTC Drug Distribution

Overview
Wholesale and sales support for pharmaceuticals and quasi-drugs.
Competitiveness
Strong brand and sales force
Customers
  • Drugstore chains
  • Mass retailers
  • EC site operators
Products
  • Topical analgesic and anti-inflammatory products
  • Rhinitis treatments
  • Athlete's foot treatments

Mail-Order Business

Overview
Direct sales through own mail-order channels.
Competitiveness
Product development aligned with consumer needs
Customers
  • Individual consumers
  • Health-conscious segment
  • Senior market
Products
  • Health foods
  • Functional drinks
  • OTC drugs

Pharmaceutical Packaging Materials

Overview
Manufactures and supplies packaging films, etc.
Competitiveness
Advanced manufacturing technology and Sanwa Group network
Customers
  • Pharmaceutical companies
  • Drug manufacturers
Products
  • Pharmaceutical packaging films
  • Packaging materials

OEM Supply

Overview
Contract manufacturing for other companies' brands.
Competitiveness
Wide manufacturing lines and quality control capabilities
Customers
  • Domestic and international pharmaceutical manufacturers
  • Health food manufacturers
Products
  • OEM manufactured products

Overseas Business Development

Overview
Overseas market expansion and local adaptation business.
Competitiveness
Multinational deployment and localized marketing
Customers
  • Overseas pharmaceutical sales companies
  • Local agents
Products
  • Analgesic and anti-inflammatory agents
  • Health-related products

Competitive Advantage

Strengths

  • High brand recognition in the topical analgesic and anti-inflammatory market
  • Stable sales power of long-selling products
  • Diversified entry into prescription pharmaceuticals
  • Robust R&D system and technological strength
  • Well-established sales channels covering domestic and international markets
  • Established manufacturing quality control system
  • Active initiatives in sustainability
  • Strong financial position and sound financial base
  • Diversified product portfolio
  • Trust relationships based on long history
  • Brand image enhancement through sports sponsorship
  • Growth in mail-order and EC business
  • Business diversification through subsidiaries
  • Well-equipped domestic logistics centers in Japan
  • Solid management team and governance

Competitive Advantages

  • Overwhelming share of 'Salonpas' brand in domestic and international markets
  • Strong prescription drugs providing thick trust with medical institutions
  • Formulation development capabilities enhancing skin permeability with proprietary technology
  • Proven track record and safety of products over many years
  • Powerful resource utilization through collaboration with Sanwa Group
  • Broad market need coverage with diverse product lineup
  • Active development of China and Southeast Asia markets
  • Brand strengthening through sports event collaborations
  • Continuous sales growth in prescription pharmaceuticals
  • New product creation expected from high R&D investment
  • Stable supply realized by well-equipped domestic logistics bases
  • Expansion of mail-order and online sales channels
  • Corporate value enhancement based on ESG and sustainability
  • Active utilization of patents and intellectual property
  • Stable local support through community-oriented activities

Threats

  • Intensifying competition in pharmaceuticals and OTC markets
  • Constraints on product development and sales due to regulatory strengthening
  • Competition with local companies in overseas markets
  • Profit impact from exchange rate fluctuations
  • Increase in generic products following patent expiration
  • Risks of quality issues or production halts at manufacturing plants
  • Rising raw material prices and supply instability
  • Risk of failing to respond to changing market needs
  • Intensified price competition from new entrants
  • Delays in sustainability regulation compliance
  • Sudden external environment changes such as new health crises
  • Declining domestic demand due to demographic changes

Innovations

2024: Completion of new 'SAGA Global Research Center' laboratory

Overview
Opened the latest R&D base in Tosu City, Saga Prefecture, to promote development of innovative pharmaceuticals.
Impact
Improved research efficiency and expanded product lineup

2023: Subsidiary conversion of mail-order business and brand refresh

Overview
Transferred mail-order business to subsidiary Hisamitsu Wellness to expand services and enhance brand value.
Impact
Contributes to strengthened customer touchpoints and sales expansion

2023: Renewal launch of analgesic and anti-inflammatory products

Overview
Enhanced market competitiveness through package and formulation improvements for major products like 'Salonpas Hot'.
Impact
Improved customer satisfaction and promoted sales recovery

2022: Establishment of 'HELLO! eco!' label indicating environmental consideration

Overview
Created identification mark for reducing environmental impact of own products to advance sustainability.
Impact
Enhanced brand image and gained consumer support

2021: Launch of mask applying non-woven fabric for patches

Overview
Developed high-function mask applying analgesic patch technology to meet expanded demand during the pandemic.
Impact
Market expansion through new product deployment

2021: Launch of new products containing felbinac

Overview
Introduced new products in multiple forms including warm sensation type like 'Feitas Zα Jikusas'.
Impact
Improved product competitiveness and increased sales

2020: Strengthening of local Chinese subsidiary

Overview
Established Hisamitsu Pharmaceutical Technology Consulting (Beijing) Co., Ltd. to solidify foothold in China.
Impact
Expanded China business and strengthened local collaboration

2020: Launch of spray analgesic 'Air Salonpas Z'

Overview
Expanded product line with new spray formulation containing diclofenac sodium.
Impact
Improved user convenience and promoted sales

2024: Package design refresh

Overview
Renewed packages for major products like 'Escap' and 'Lakalto' tailored to own products.
Impact
Improved brand recognition and promoted purchases

2024: Expansion of domestic logistics system

Overview
Opened Kansai Logistics Center to strengthen supply to western Japan.
Impact
Improved delivery efficiency and achieved stable supply

Sustainability

  • Improvement of manufacturing processes to reduce environmental impact
  • Promotion of recyclable packaging materials for products
  • Implementation of environmental education support activities for local communities
  • Improvement of work environment and promotion of diversity
  • Strengthening pharmaceutical safety management and improving information transparency
  • Support for local contribution activities in Saga Prefecture
  • Establishment of sustainable raw material procurement
  • Reduction of energy consumption and expansion of renewable energy use
  • Promotion of waste reduction initiatives
  • In-house programs to raise sustainability awareness