Nihon Kohden Corporation

Basic Information

Stock Code
6849
Industry
Electrical Equipment
Category Detail
Commercial & Industrial Machinery
Prefecture
Tokyo
Establishment Year
August 1951
Listing Year
November 1961
Official Website
https://www.nihonkohden.co.jp/
TSE Information
TSE Information
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Other Companies
Ship HD, Terumo, J Material, PHC Holdings, Technomedica, Rion, Fukuda Denshi, Yagami, Japan M.D.M., Nakanishi, Olympus, Cyberdyne, Keisei

Overview

Nihon Kohden Corporation is a specialized medical electronics company founded in 1951, boasting the top domestic market share in electroencephalographs and vital signs monitors.

Current Situation

Nihon Kohden Corporation recorded consolidated revenue of approximately 199.7 billion yen and operating profit of approximately 27.1 billion yen for the fiscal year ended March 2021, demonstrating strong competitiveness in the medical electronics market. It maintains the top domestic market share in electroencephalographs, electrocardiographs, and vital signs monitors, while also growing its new medical device businesses such as AEDs. The company is proactive in technology development, possessing numerous proprietary technologies including the world's first all-AC direct-writing electroencephalograph and wireless telemetry vital signs monitors. In terms of sustainability, it emphasizes corporate social responsibility and focuses on developing safe and reliable products. It is also advancing overseas expansion into global markets including the United States and Europe. Following a bribery scandal in 2021, the company is strengthening its governance structure, while aiming for growth in the medium to long term through digitalization of medical sites and new product development. It seeks to expand market share based on innovative technologies and sales capabilities to meet stable growth in domestic and international demand for medical devices.

Trivia

Interesting Facts

  • Developed Japan's first multipurpose monitoring recorder (polygraph).
  • In 1974, Dr. Takuo Aoyagi invented the principle of pulse oximetry.
  • Contributed to the expansion of AED installations in Japan, with numerous lives saved.
  • World's first commercialization of wireless telemetry vital signs monitors.
  • Launched arrhythmia analysis built-in ECG monitor in 1982.
  • Holds numerous technology patents for medical devices.
  • Official sponsor of Tokyo Marathon, providing AEDs.
  • Received commission from the Space Development Agency for life science experiment devices.
  • Expands hearing aid business for welfare beyond medical settings.
  • Business started with electroencephalograph development at founding.

Hidden Connections

  • Entered the hearing aid field through partnership with Sony.
  • Jointly developed medical network systems with Canon Medical Systems.
  • Noted as a related company in the Mie University Hospital medical device delivery case.
  • Commercial AEDs are used in many public events and facilities.
  • Expands widely into overseas medical device markets through group companies.
  • Group includes companies related to cell therapy beyond medical supplies.
  • Nihon Kohden Firenze Ltd. handles production of genuine reagents.
  • Actively engages in social contribution activities such as medical education and regional support.

Future Outlook

Growth Drivers

  • Increasing demand for medical devices due to aging population domestically and internationally
  • Needs for digitalization and IT integration in medical settings
  • Active product rollout in emerging markets
  • Market expansion through AED普及 promotion
  • Progress in innovative medical technology development and patent acquisition
  • Growing demand for environmentally friendly medical devices
  • Enhancement of support services for medical professionals
  • Increasing device replacement demand from domestic medical policies
  • Expansion of remote monitoring and AI utilization
  • Efficiency gains through group company synergies

Strategic Goals

  • Maintain and expand share in domestic medical device market
  • Increase overseas sales ratio to over 30%
  • Accelerate product innovation with AI and IoT technologies
  • Continuously ensure medical device safety and reliability
  • Promote sustainable manufacturing and material use
  • Diversify and advance medical site support services
  • Develop products aimed at reducing environmental impact
  • Enhance and promote medical education and training
  • Build comprehensive medical network systems
  • Strengthen governance and thoroughly uphold corporate ethics

Business Segments

Medical Device Sales Segment

Overview
Segment handling sales and implementation support of medical electronic devices to medical institutions.
Competitiveness
High product reliability and strong network with medical institutions
Customers
  • Hospitals
  • Clinics
  • Medical offices
  • Medical information system companies
  • Distributors for medical institutions
Products
  • Electroencephalographs
  • Electrocardiographs
  • Vital signs monitors
  • AEDs
  • Intraoperative neuromonitoring devices

Development and Manufacturing Segment

Overview
Handles planning, design, and manufacturing of medical devices, providing high-quality products.
Competitiveness
Track record of world-first technology developments and numerous patents
Customers
  • Own group companies
  • Medical device OEM manufacturers
  • Research institutions
  • Pharmaceutical companies
Products
  • Medical device development and manufacturing
  • Reagents
  • Inspection devices

Overseas Expansion Segment

Overview
Promotes sales and services in North America, Europe, and Asia markets.
Competitiveness
International product certifications and local support systems
Customers
  • Overseas medical institutions
  • Overseas medical device distributors
  • Global corporate partners
Products
  • Medical electronic devices
  • AEDs
  • Patient monitoring systems

Medical Technology Support and Education Segment

Overview
Education and support business supporting product use in medical settings.
Competitiveness
Detailed support by engineers with extensive expertise
Customers
  • Medical professionals
  • Hospital training departments
  • Medical device sales agents
Products
  • Product training programs
  • Operation support services
  • Technical support

System Integration and Network Segment

Overview
Proposes integrated solutions combining medical devices and IT.
Competitiveness
Experience in joint development with Canon Medical
Customers
  • Hospital information system departments
  • Medical IT companies
  • Medical network construction companies
Products
  • Vital signs integrated systems
  • Remote monitoring services
  • Network construction solutions

Hearing Aids and Related Products Segment

Overview
Aims to expand customer base by providing hearing aids for aging society.
Competitiveness
Technological strength through collaboration with Sony
Customers
  • Hearing aid retailers
  • Medical institutions
  • Welfare facilities for the elderly
Products
  • Hearing aid products
  • Accessories

Cell Therapy Related Segment

Overview
Develops and sells products related to emerging cell therapy field.
Competitiveness
Collaboration with Takara Kohden Cell Therapy Co., Ltd.
Customers
  • Pharmaceutical companies
  • Regenerative medicine institutions
  • Research facilities
Products
  • Cell therapy products
  • Cell processing devices

Contract Research and Development Segment

Overview
Conducts contract R&D and provides research equipment.
Competitiveness
Track record of commissions from space development organizations
Customers
  • National research institutions
  • Universities
  • Space development agencies
Products
  • Life science experiment devices
  • Research-use medical devices

Medical Device Maintenance and Service Segment

Overview
Supports medical sites through maintenance to maintain product uptime.
Competitiveness
Nationwide service network
Customers
  • Medical institutions
  • Sales agents
  • Medical device centralized management companies
Products
  • Maintenance services
  • Maintenance contracts

IT and Software Development Segment

Overview
Advances development of IT systems integrated with medical devices.
Competitiveness
Collaboration with NKUS Lab Co., Ltd.
Customers
  • Medical institutions
  • Group companies
  • Medical device sales companies
Products
  • Medical information systems
  • Patient management software

Medical Education and Training Segment

Overview
Education services aimed at safe and effective product use.
Competitiveness
Comprehensive education system by specialist staff
Customers
  • Medical professional training institutions
  • Hospital education departments
  • Product sales networks
Products
  • Technical guidance
  • Education programs

Environment-Related Products Segment

Overview
Expands products pursuing safety and sustainability in medical environments.
Competitiveness
Advanced product lineup with environmentally conscious design
Customers
  • Hospitals
  • Research facilities
  • Medical waste management companies
Products
  • Low-environmental-impact devices
  • Waste treatment devices

Competitive Advantage

Strengths

  • Overwhelming domestic EEG market share of over 90%
  • Diverse medical device lineup
  • Advanced technology development capabilities and numerous patents
  • Nationwide sales and service network
  • Long-standing trusted relationships with medical institutions
  • Management structure integrating multiple group companies
  • Strength in emergency medical devices including AEDs
  • Active expansion into overseas markets
  • Compliance with domestic regulations and high quality control
  • Rapid response to medical site needs

Competitive Advantages

  • Dominant position in Japan's EEG and vital monitors market
  • Pioneering technology and brand recognition in AED business
  • Deployment of integrated solutions for medical devices and IT systems
  • Reliability backed by various medical certifications
  • Network systems through collaboration with Canon Medical
  • High-quality assurance systems domestically and internationally
  • High-function product lineup adaptable to multiple purposes
  • Expansion into next-generation medical devices such as hearing aids
  • Comprehensive product and service system via group companies
  • Reliable after-sales service system

Threats

  • Stagnation of medical demand due to domestic population decline
  • Technological innovations and price competition from overseas rivals
  • Cost increases from stricter medical device regulations
  • Corporate governance risks such as bribery scandals
  • Investment restraint by medical institutions due to prolonged COVID-19
  • Product obsolescence risk from accelerating technological advancements
  • Profit pressure from exchange rate fluctuations
  • Political and economic instability in overseas markets
  • Rise of emerging medical device startups
  • Cybersecurity risks

Innovations

2022: Launch of Next-Generation Vital Signs Monitor 'Life Scope G10'

Overview
Developed and launched a new monitor equipped with high-precision measurement and AI analysis functions.
Impact
Contributes to efficiency in medical settings and improved patient safety.

2023: Development of Smart AED Linkage System

Overview
Enables real-time management of AED usage status using IoT.
Impact
Enhances safety management in public facilities and enables rapid response.

2024: Enhanced Performance of Wireless Telemetry Vital Monitors

Overview
Introduced products with significantly improved wireless communication reliability.
Impact
Improves monitoring quality during patient movement.

2021: Update to Intraoperative Neuromonitoring Devices

Overview
Technology development to improve real-time neural function monitoring accuracy during surgery.
Impact
Contributes to enhanced surgical safety.

2020: Launch of New Medical Pulse Oximeter Model

Overview
Developed and began sales of portable models with improved accuracy and operability.
Impact
Successfully captured demand in both medical and home settings.

Sustainability

  • Promotion of CO2 emission reduction plans in manufacturing processes
  • Active use of recyclable materials
  • Ensuring safety in medical settings and product longevity
  • Social contributions through regional medical support activities
  • Strengthening corporate ethics and compliance
  • Ongoing development of safe, high-quality products
  • Procurement of materials mindful of environmental impact reduction
  • Utilization of diverse talent and creation of comfortable work environments
  • Technical training and support activities for medical professionals
  • Improving sustainability through strengthened supply chain management