Daito
Basic Information
- Stock Code
- 4577
- Industry
- Pharmaceuticals
- Category Detail
- Chemicals & Chemical Products
- Prefecture
- Toyama Prefecture
- Establishment Year
- June 1942
- Listing Year
- March 2010
- Official Website
- https://www.daitonet.co.jp/
- TSE Information
- TSE Information
- Yahoo! Finance
- Yahoo! Finance
- Other Companies
- Takamiya, Taoka Chemical Industry, Koei Chemical, Muromachi Chemical, Taihei Seisakusho, CSP
Overview
Daito is a pharmaceutical manufacturer headquartered in Toyama Prefecture, founded in 1942. It conducts integrated manufacturing from APIs to formulations and is a leading industry player with technological expertise in highly potent formulations.
Current Situation
Daito recorded consolidated net sales of approximately 43.5 billion yen, operating profit of approximately 6.5 billion yen, and net profit of approximately 4.7 billion yen for the fiscal year ended May 2022, maintaining a stable financial base. Its mainstays are API manufacturing for generic drugs, APIs for new drug manufacturers, and the manufacturing and sales of medical pharmaceuticals and health foods, with active expansion in contract manufacturing. In R&D, it focuses on manufacturing technology for highly potent formulations, including the establishment of a Highly Potent R&D Center in 2017 to promote technological innovation. It has manufacturing bases through group companies domestically and internationally, strengthening business expansion in China and the US. It is also committed to sustainability, improving manufacturing process efficiency and reducing environmental impact. In the market, it is strengthening its supply system in response to the expansion of generic drugs and transitioned to the Prime Market in 2022 to further enhance corporate value. Moving forward, it will focus on developing high-value-added pharmaceuticals and accelerating overseas expansion as key growth strategies, while building a sustainable pharmaceutical supply system.
Trivia
Interesting Facts
- Pharmaceutical company founded in Toyama Prefecture with over 80 years of history.
- One of the few pharmaceutical manufacturers with integrated production from APIs to formulations.
- Boasts top-class technological strength in the industry for highly potent formulations.
- Active in pharmaceutical development in cooperation with local governments through community-oriented management.
- Has local subsidiaries in China and the US, advancing global expansion.
- Corporate philosophy emphasizes values of 'Creativity,' 'Fighting Spirit,' and 'Integrity.'
- Long-term supplier of APIs for many generic drugs.
- GMP-compliant head office factory features multiple formulation and API buildings.
Hidden Connections
- No capital relationship with Daito Yakuhin in Miyagi Prefecture despite the same name, but sometimes misunderstood in the industry.
- Utilizes US subsidiary for technical exchanges and sales channel expansion with local companies.
- Contributes to forming the foundation of local industries as a pharmaceutical company originating from Toyama Prefecture.
- Strong in compliance with Pharmaceutical Affairs Law regulations, with many custom formulations for specific customers.
Future Outlook
Growth Drivers
- Increased API demand and supply due to expansion of generic drug market
- Growing demand for highly potent formulations and expansion of technological superiority
- Reliability of Japanese manufacturing in the global pharmaceutical market
- Growth in contract manufacturing services (CDMO) market
- Expansion of health food and supplement markets domestically and internationally
- Promotion of manufacturing efficiency through digital technology introduction
- Strengthening of low-environmental-impact technology and increasing ESG investments
- High value-added through enhanced compliance with domestic and international pharmaceutical regulations
Strategic Goals
- Maintain position as top domestic supplier of integrated API and formulation manufacturing
- Expand manufacturing and sales bases in the global market
- Achieve business scale expansion targeting annual sales over 70 billion yen
- Achieve over 50% commercialization rate for new highly potent formulations
- CO2 emissions reduction of 30% as sustainability target
- Secure annual sales over 20 billion yen in CDMO contract manufacturing
- Diversification of health food business and strengthening of OEM supply system
- Promotion of digital transformation in pharmaceutical manufacturing
Business Segments
Pharmaceutical API Manufacturing
- Overview
- Segment engaged in manufacturing and supply of APIs for generics and new drugs.
- Competitiveness
- Integrated manufacturing system compliant with GMP and highly potent technology
- Customers
-
- Generic pharmaceutical manufacturers
- New drug development companies
- Pharmaceutical contract manufacturers
- Pharmaceutical factories
- Products
-
- Active pharmaceutical ingredients
- Intermediates
- Highly potent APIs
- Contract manufacturing services
Pharmaceutical Formulation Contract Manufacturing (CDMO)
- Overview
- Provides contract manufacturing and development support services for pharmaceutical formulations.
- Competitiveness
- Highly potent formulation manufacturing technology and diverse formulation technologies
- Customers
-
- Medical pharmaceutical manufacturers
- Biopharmaceutical companies
- Generic formulation manufacturers
- Pharmaceutical contract companies
- Products
-
- Medical tablets
- Injections
- Ointments and creams
- Highly potent formulations
Health Foods and Supplements Business
- Overview
- Expands high-quality health foods for the health-conscious market.
- Competitiveness
- Safety and quality assurance leveraging pharmaceutical technology
- Customers
-
- General consumers
- Drugstores
- Health food retailers
- Products
-
- Health supplements
- Beauty-related foods
- Vitamin and mineral products
Overseas Business
- Overview
- Handles pharmaceutical business support and sales expansion in the US and China.
- Competitiveness
- Global collaboration through local subsidiaries and local development capabilities
- Customers
-
- US pharmaceutical companies
- Chinese pharmaceutical companies
- Global pharmaceutical companies
- Products
-
- API import/export
- Pharmaceutical formulation sales
- Technical support
Contract Manufacturing and Technical Services
- Overview
- Provides total services for manufacturing, analysis, and development support.
- Competitiveness
- Advanced manufacturing technology and quality control systems
- Customers
-
- New pharmaceutical development companies
- Contract manufacturers
- Universities and research institutions
- Products
-
- Pharmaceutical manufacturing contracts
- Analytical testing
- Process development support
Competitive Advantage
Strengths
- Integrated manufacturing capability from APIs to formulations
- Technological capability to handle highly potent formulations
- Stable funding from Tokyo Stock Exchange Prime listing
- Overseas manufacturing and sales network
- Ownership of advanced GMP-compliant factories
- Well-equipped R&D centers
- Diversification of pharmaceutical contract manufacturing business
- Thorough compliance with pharmaceutical-related regulations
- Comprehensive quality management system
- Solid financial foundation
- Long years of industry experience and track record
- Promotion of collaboration with multinational companies
- Broad expansion into the health food market
- Active equipment investments and expansions
- Community-oriented management approach
Competitive Advantages
- Capable of high-quality supply from APIs to formulations, contributing to customer procurement cost reductions
- Specialized technology in highly potent API manufacturing achieves differentiation from market competitors
- High reliability as a Prime Market-listed company, earning strong trust from trading partners
- Global production and sales system built through group companies in the US and China
- Flexible response to multi-variety small-lot production, quickly meeting customer needs
- Continuous development of new and improved drugs through well-equipped R&D centers
- Stable supply of high-quality products via GMP-compliant manufacturing equipment
- High capability in providing development support services in pharmaceutical contract manufacturing (CDMO)
- Advancing new market development through entry into the health food sector
- Maintains stable management base with capital of approximately 6.2 billion yen
- Able to design optimal manufacturing lines for each customer, enabling differentiation
- Growth backed by expansion of domestic medical and generic pharmaceutical markets
- Strength in generic supply for off-patent drugs
- Trusted relationships and long-term transaction records with diverse domestic and international customers
- Sustainable manufacturing system compliant with environmental regulations
Threats
- Risk of increased manufacturing costs due to stricter pharmaceutical regulations
- Intensifying price competition from rising competitors in the generic drug market
- Risks in raw material procurement due to overseas situations and trade friction
- Supply chain disruptions from new infectious diseases or pandemics
- Potential patent issues or intellectual property disputes
- Delays in development competition due to slowdown in technological innovation
- Profit instability from exchange rate fluctuations
- Aging manufacturing equipment and insufficient renewal funds
- Risks in technology succession due to difficulties in securing talent
- Frequent costs for responding to environmental regulations and legal amendments
- Intensifying competition in the global market
- Delays in adapting to changes in pharmaceutical sales channels
Innovations
2023: Enhancement of highly potent formulation production technology
- Overview
- Advanced manufacturing technology for highly potent pharmaceuticals, succeeding in mass production of difficult-to-process products.
- Impact
- Contributes to portfolio expansion and improved competitiveness
2022: Promotion of automation and labor-saving in manufacturing equipment
- Overview
- Introduced latest automation equipment to improve manufacturing process efficiency and quality stability.
- Impact
- Achieved 15% productivity improvement and labor cost reductions
2021: Expansion of manufacturing bases at overseas subsidiaries
- Overview
- Expanded manufacturing subsidiaries in China and the US to enhance overseas sales and supply capabilities.
- Impact
- Strengthens growth foundation for global business
2020: Establishment of Highly Potent R&D Center
- Overview
- Newly established a research and development facility in Toyama specialized in highly potent formulations.
- Impact
- Accelerates new pharmaceutical development and promotes technological innovation
Sustainability
- Reduction of environmental impact and waste in manufacturing processes
- CO2 emission reductions through introduction of energy-saving equipment
- Thorough safety and health management and improvement of employee welfare
- Community collaboration for pharmaceutical dissemination support activities
- Active promotion of recycled materials utilization