Kyorin Pharmaceutical

Basic Information

Stock Code
4569
Industry
Pharmaceuticals
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Tokyo
Establishment Year
October 1958
Listing Year
March 2006
Official Website
https://www.kyorin-pharm.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Kyowa Kirin, Takeda Pharmaceutical, Astellas Pharma, Shionogi, Chugai Pharmaceutical, Eisai, Ono Pharmaceutical, Mochida Pharmaceutical, Santen Pharmaceutical, Kemifa, Daiichi Sankyo, Otsuka Holdings, Makiya

Overview

Kyorin Pharmaceutical is a pharmaceutical manufacturer founded in 1923 and is a mid-sized domestic pharmaceutical company with strengths in therapeutics for respiratory and urological areas.

Current Situation

Kyorin Pharmaceutical focuses its business on therapeutics for respiratory and urological areas and currently employs about 1,400 people as of 2022. In recent years, it has strengthened prescription pharmaceuticals such as antibacterials and expectorants, while also expanding into OTC pharmaceuticals. Through absorption merger by its holding company in 2023, it has strengthened its management base, enhanced its R&D structure, and focused on overseas expansion. One of its major products, 'Mucodin,' had its trademark rights transferred to Shionogi Healthcare starting in 2024, aiming for new market collaborations. It has also begun expanding into environmental hygiene products, promoting diversified business alongside its existing pharmaceutical areas. After transitioning to a holding company structure, it is advancing group-wide efficiency, particularly aiming to expand its domestic share in respiratory therapeutics. Amid intensifying market competition, it is establishing technological superiority through product development and patent agreements, anticipating stable revenue growth by 2025. Moving forward, it will pursue sustainable growth with advanced pharmaceutical technology and strengthened global collaborations as pillars of its medium-term strategy.

Trivia

Interesting Facts

  • Specialized in pharmaceuticals since founding in 1923.
  • Research in synthetic antibacterials forms core technology.
  • Holds famous pharmaceutical brand 'Cool One' series.
  • Restructured from holding company to business company in 2023, opening new chapter.
  • Full-scale entry into environmental hygiene product manufacturing since 2011.
  • 'Milton' disinfectant products inherited P&G business in Japan.
  • Established local subsidiaries in Europe and US for active international expansion.
  • Product portfolio covering both pharmaceuticals and OTC products.
  • Mid-sized company with strength in synthetic antibacterials within the industry.
  • Integrated drug discovery center and skincare lab to strengthen research.
  • 'Gachifuro incident' influenced past management integration failure.
  • Self-branded hygiene products and detergents for infants.
  • Strong group collaboration with parent Kyorin Pharmaceutical HD.
  • Reliable stable supply to Japanese medical institutions.
  • Holds numerous patents from unique formulation technologies.

Hidden Connections

  • Has undisclosed transaction relationships with numerous domestic and overseas pharmaceutical companies through pharmaceutical OEM business.
  • Built unique position in disinfectant industry through Milton business inherited from P&G.
  • Some major products circulate in market as OEM for other companies like Taisho Pharmaceutical.
  • Synthetic antibacterial technology competes with Kyowa Kirin and Chugai Pharmaceutical but also has collaborative technical exchanges.
  • Promoting new product development through patent agreement with Novartis.
  • Research institute located in Nogi Town, Tochigi Prefecture, contributing to local economy.
  • Corporate form significantly changed in 2023 through reverse merger with parent.
  • Branches deployed nationwide, covering broad domestic customer segments.

Future Outlook

Growth Drivers

  • Demand expansion accompanying increase in respiratory and urological diseases
  • Advancement of new product development using advanced antibacterial technology
  • Growth in OTC pharmaceutical market and improved brand recognition
  • Business diversification through environmental hygiene business entry
  • International business expansion utilizing overseas bases
  • Progress and efficiency in drug discovery research using AI
  • Revenue expansion through active licensing of patent technologies
  • Strengthened response to sustainability demands
  • Enhanced collaboration with medical IT and digital health
  • Stable growth supported by government pharmaceutical policies

Strategic Goals

  • Expand domestic share in respiratory and urological therapeutics and promote overseas expansion
  • 30% reduction in environmental impact for sustainable pharmaceutical business
  • Halve drug discovery development period using AI
  • Elevate OTC brand recognition to domestic top level
  • Achieve 20% domestic market share in environmental hygiene field
  • Promote group management efficiency using holding company structure
  • Achieve annual sales growth exceeding ¥50 billion
  • Strengthen talent through diverse human resource development and work style reforms
  • Establish safe, high-quality pharmaceutical supply system
  • Continuously strengthen social contribution activities and ensure transparency in disclosures

Business Segments

Prescription Pharmaceutical Manufacturing and Supply

Overview
Supplies pharmaceuticals centered on respiratory and urological systems to medical institutions.
Competitiveness
High technological expertise in synthetic antibacterials and diverse product portfolio
Customers
  • Hospitals
  • Clinics
  • Pharmacies
  • Medical institution wholesalers
  • Physicians
  • Hospital pharmacists
Products
  • Respiratory therapeutics
  • Urological therapeutics
  • Antibacterials
  • Expectorants
  • Anti-inflammatory analgesics
  • Antibiotics

OTC Pharmaceuticals and Environmental Hygiene Products

Overview
Supplies general consumer health-related products to retailers and facilities.
Competitiveness
Stable market share and brand strength in disinfectant business
Customers
  • Drugstores
  • Pharmacy chains
  • Retail distributors
  • Childcare facilities
  • Nursing care facilities
Products
  • OTC cough and expectorants
  • Baby bottle disinfectants
  • Sterilizers and sanitizer gels
  • Laundry detergents
  • Environmental hygiene products

R&D Services

Overview
Provides R&D support and technology to pharmaceutical-related companies.
Competitiveness
Advanced drug discovery technology utilizing Watara se Drug Discovery Center
Customers
  • Pharmaceutical companies
  • Biotech companies
  • University research institutions
  • Medical device manufacturers
Products
  • Joint R&D
  • New drug candidate compounds
  • Drug discovery patent support

Pharmaceutical Contract Manufacturing (CMO Business)

Overview
Provides contract manufacturing services for pharmaceuticals to support product development.
Competitiveness
High-quality production management and stable supply system
Customers
  • Domestic pharmaceutical companies
  • Overseas pharmaceutical companies
  • Biopharma companies
Products
  • Pharmaceutical contract manufacturing
  • API manufacturing
  • Packaging and inspection services

Healthcare Product OEM Supply

Overview
OEM manufacturing of diverse healthcare products leveraging in-house technology.
Competitiveness
Flexible product development capabilities and high quality standards
Customers
  • Major drugstore chains
  • Health food manufacturers
  • Cosmetics manufacturers
Products
  • Pharmaceutical OEM
  • Hygiene product OEM
  • Cosmetics OEM

Patent Technology Licensing

Overview
Licenses in-house technologies centered on antibacterials.
Competitiveness
Accumulated IP in synthetic antibacterial technology and sales network
Customers
  • Domestic and overseas pharmaceutical companies
  • Biotech ventures
Products
  • Patent technology licensing
  • Technology consulting

Clinical Trial Support Services

Overview
Supports planning and operation of clinical trials to accelerate development.
Competitiveness
Efficient management through group collaboration
Customers
  • Pharmaceutical development companies
  • Medical institutions
  • Research institutes
Products
  • Clinical trial management
  • Data analysis services

Healthcare Promotion Business

Overview
Supports health promotion through disease awareness and information provision.
Competitiveness
Rich track record of collaboration with medical experts
Customers
  • Patient groups
  • Healthcare professionals
  • Academic societies
Products
  • Treatment awareness campaigns
  • Pharmaceutical information provision

Logistics and Distribution Support

Overview
Efficiency support services in pharmaceutical logistics and distribution.
Competitiveness
Efficient network through group synergies
Customers
  • Pharmaceutical wholesalers
  • Drugstores
  • Hospital logistics
Products
  • Pharmaceutical logistics management
  • Distribution optimization

Education and Training Services

Overview
Training services for healthcare professionals and internal staff.
Competitiveness
Comprehensive education programs based on specialized knowledge
Customers
  • Medical institutions
  • Pharmacists
  • Sales staff
Products
  • Pharmaceutical knowledge training
  • Sales skill enhancement training

Environmental Hygiene Product Development and Sales

Overview
Planning, manufacturing, and sales of environmental hygiene products.
Competitiveness
Product lineup combining high safety and quality
Customers
  • Medical institutions
  • Nursing care facilities
  • General households
Products
  • Disinfectants
  • Sterilizing products
  • Air purification products

Overseas Market Expansion

Overview
Product rollout through local subsidiaries in the US and Europe.
Competitiveness
Market development leveraging global network
Customers
  • Overseas pharmaceutical wholesalers
  • Global pharmaceutical companies
Products
  • Prescription pharmaceutical exports
  • Supply to local subsidiaries

Competitive Advantage

Strengths

  • Specialized pharmaceutical technology in respiratory and urological areas
  • Advanced R&D capabilities in synthetic antibacterials
  • Stable domestic sales channel network
  • Risk diversification through diversified product lineup
  • Improved management efficiency from holding company transition
  • Solid financial base and appropriate capital policy
  • Abundant patents and intellectual property holdings
  • Active overseas subsidiary expansion
  • Pharmaceutical OEM supply capabilities
  • New entry into environmental hygiene business
  • Market coverage through both prescription and OTC expansion
  • Long-standing trusted track record in the pharmaceutical industry
  • Proven technology partnerships through patent agreements
  • Utilization of diverse sales channels
  • Promotion of research institute integration in drug discovery areas

Competitive Advantages

  • Specialized product provision for respiratory and urological therapeutics
  • R&D system with technological superiority in synthetic antibacterials
  • Stable customer base through regionally strong sales network
  • Flexible response to market fluctuations with diverse products
  • Management resource consolidation and strategy advancement through parent company collaboration
  • Broad access to domestic and international markets and secured sales channels
  • IP strength enabling licensing of patent and formulation technologies
  • High-quality contract manufacturing facilities
  • Consumer support from improved OTC brand recognition
  • Business area expansion through entry into new environmental hygiene market
  • Market competitiveness through dual expansion in pharmaceuticals and healthcare products
  • Product development and strategic partnerships considering global pharmaceutical trends
  • Clear sustainability-oriented operations and environmental considerations
  • Creation of innovative pharmaceuticals through active R&D investment
  • Enhanced human resources for sales expansion domestically and internationally

Threats

  • Prolonged new drug development and success risks
  • Intensifying price competition from competitors
  • Stricter regulations in the pharmaceutical industry
  • Generic competition after patent expiration
  • Foreign exchange fluctuation risks in global markets
  • Market share expansion by generic manufacturers
  • Rise of emerging markets and overseas companies
  • Rising R&D costs and funding difficulties
  • Drug price revision risks from policy changes
  • Challenges in maintaining safety and quality at manufacturing sites
  • Possibility of failing to keep up with pace of technological innovation
  • Market demand fluctuations and diversifying customer preferences

Innovations

2023: Transition to business company via holding company

Overview
Kyorin Pharmaceutical Holdings absorbed and merged Kyorin Pharmaceutical Co., Ltd., completing the transition to a business company.
Impact
Improved group management efficiency and business strategy integration

2024: Mucodin trademark rights transfer

Overview
Licensed Mucodin trademark rights to Shionogi Healthcare, strengthening OTC drug market collaboration.
Impact
Accelerated product market penetration and new distribution channels

2023: Launch of environmental hygiene products business

Overview
Succeeded manufacturing of environmental hygiene products from Kyorin Medical Supply, advancing business diversification.
Impact
Strengthened revenue base through entry into new field

2022: Technology collaboration via patent agreement

Overview
Concluded patent agreement with Novartis, accelerating rollout of new antibacterials.
Impact
Enhanced R&D and market competitiveness

2021: Introduction of AI-based federated learning technology

Overview
Implemented AI federated learning in collaboration with industry competitors to improve drug discovery prediction accuracy.
Impact
Expected R&D efficiency and breakthrough pharmaceuticals

Sustainability

  • Formulation and promotion of Green Pharma business policy
  • Efforts to reduce factory emissions for lower environmental impact
  • Resource provision and cooperation for regional medical support
  • Plastic reduction through eco-packaging introduction
  • Employee work-life balance promotion activities
  • Strengthened pharmaceutical safety management system
  • Ongoing measures to ensure stable pharmaceutical supply
  • Establishment of sustainable R&D processes
  • Formulation and application of sustainable procurement standards
  • Promotion of product development for circular economy
  • Expansion of social contribution activities and strengthened regional collaboration
  • Regular publication of SDGs progress reports for transparency