Toho Holdings

Basic Information

Stock Code
8129
Industry
Wholesale
Category Detail
Pharmaceuticals & Medical Products Wholesalers
Prefecture
Tokyo
Establishment Year
September 1948
Listing Year
October 1980
Official Website
https://www.tohohd.co.jp/
TSE Information
TSE Information
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Overview

Toho Holdings is a major pharmaceutical wholesaler founded in 1948, operating a nationwide wholesale network centered on Toho Yakuhin as a holding company.

Current Situation

Toho Holdings recorded consolidated sales of approximately 1.3886 trillion yen and net assets of approximately 242.9 billion yen in the latest fiscal year ended March 2023. With pharmaceutical wholesaling as its foundation, it has expanded its business nationwide through partnerships with local wholesalers. In recent years, it has strengthened its holding company structure and carried out group reorganization centered on Toho Yakuhin. Major subsidiaries include Pharma Cluster and Toho System Service, which handle pharmacy operations and IT services. It is focusing on diversified medical-related businesses such as SPD services for medical institutions and pharmacy operations and management. With capital of 10.6 billion yen and approximately 7,700 employees, it leverages specialized wholesaling expertise and a wide-area network as strengths. Moving forward, it will promote regionally rooted wholesaling and pharmacy enhancement, and efficiency improvements through IT utilization. It is also focusing on ESG and compliance management to ensure safe pharmaceutical distribution and sustainable growth. Discussions regarding capital policies with investment funds and executive appointments are becoming more active, with ongoing efforts to enhance corporate value.

Trivia

Interesting Facts

  • Transitioned to a holding company structure, separating pharmaceutical wholesaling and pharmacies to improve management efficiency.
  • Major pharmaceutical wholesaler with a nationwide collaboration network of local wholesalers.
  • Subsidiaries deploy diversified medical services including pharmacy operations and logistics for medical institutions.
  • Has maintained a stable position in the pharmaceutical wholesaling industry for many years.
  • Major pharmaceutical companies are shareholders, indicating deep industry ties.
  • Proactive in developing IT systems for pharmacy management, focusing on operational efficiency.
  • SPD business for medical institutions is steadily growing, supporting hospital logistics efficiency.
  • Handles a wide range of medical-related products beyond pharmaceuticals, such as medical equipment and reagents.
  • Operates multiple regionally specialized subsidiaries, providing closely tailored services to regional healthcare.
  • Headquartered in Setagaya Ward, actively introducing cutting-edge technologies despite its long history.
  • Engages in CSR activities such as regional healthcare support and disaster medical assistance for social contribution.
  • Highly evaluated for internal compliance education and information management systems.
  • Implements thorough quality management in compliance with safe pharmaceutical distribution standards.
  • Optimally allocates group-wide management resources as a holding company.
  • Active discussions sometimes occur at general meetings regarding proposals from investment funds.

Hidden Connections

  • Major pharmaceutical companies are listed as major shareholders, indicating strong ties to the pharmaceutical industry.
  • Established leadership in industry efficiency through IT system introductions for pharmacy subsidiaries.
  • Differentiates from competitors by promoting regionally rooted businesses through partnerships with local wholesalers.
  • Developing new business areas by leveraging specialized know-how in medical institution logistics services.
  • Entered the IT business through subsidiary Toho System Service.
  • Group pharmacies sometimes serve as bridges in the medical community.
  • Occasional reports of conflicts with investment fund 3D over management policies.
  • Toho Yakuhin (subsidiary) handles pharmaceutical wholesaling, with the holding company overseeing overall operations.

Future Outlook

Growth Drivers

  • Sales area expansion through strengthened partnerships with local wholesalers.
  • Customer base expansion through enhanced pharmacy operations and network growth.
  • Increasing demand and efficiency for SPD logistics services to medical institutions.
  • Business efficiency and service improvements through IT and digital technologies.
  • Expansion of medical and nursing needs due to aging society.
  • New service provision in response to strengthened pharmaceutical distribution safety.
  • Expansion of medical-related R&D support and new market development.
  • Corporate value enhancement through proactive environmental and sustainability responses.
  • Flexible business deployment adapting to regulatory changes in the medical industry.
  • Evolution of regionally rooted marketing and services.
  • Revenue structure strengthening through nurturing of diversified businesses.
  • Promotion of management reforms through collaboration with external capital such as investment funds.

Strategic Goals

  • Realize nationwide deployment of regionally rooted pharmaceutical supply network.
  • Grow pharmacy group to top class nationwide.
  • Become industry leader in SPD business for medical institutions.
  • Achieve 50% improvement in operational efficiency across all businesses through IT and DX promotion.
  • Continuously implement environmental burden reduction and sustainability strengthening.
  • Achieve highest level in pharmaceutical safety management framework.
  • Achieve 20% sales ratio from medical-related new businesses.
  • Build diverse talent utilization and engaging work environment.
  • Continuously implement and execute management reforms to enhance shareholder value.
  • Enhance customer satisfaction and strengthen collaboration with medical sites.

Business Segments

Pharmaceutical Wholesaling

Overview
Wholesaling business that stably supplies pharmaceuticals to medical institutions and pharmacies, supporting regional healthcare.
Competitiveness
Wide-area coverage through nationwide network and collaboration with local wholesalers
Customers
  • Hospitals
  • Clinics
  • Compounding pharmacies
  • Medical institutions
  • Medical facilities
  • Welfare facilities
  • Clinics
  • Medical corporations
  • Research institutions
  • Pharmaceutical companies
Products
  • Prescription pharmaceuticals
  • Over-the-counter pharmaceuticals
  • Reagents and test drugs
  • Medical equipment
  • Health foods
  • Medical consumables
  • Pharmaceutical raw materials
  • Pharmaceutical research supplies
  • Supplements
  • Related materials

Compounding Pharmacy Operations Support

Overview
Promotes efficiency in pharmacy management and dispensing services, contributing to improved quality of regional healthcare.
Competitiveness
Regionally rooted support structure and efficient operations through IT utilization
Customers
  • Pharmacy owners
  • Pharmacy groups
  • Medical corporations
  • Local pharmacies
  • Independent pharmacies
  • Dispensing specialty stores
  • Local communities
  • Health support facilities
  • Nursing homes
  • Welfare facilities
Products
  • Prescription dispensing services
  • Pharmacy management support
  • Electronic medical records integration
  • Medical equipment sales
  • Health consultations
  • Home medical care support
  • Medication guidance
  • Pharmacy logistics systems
  • Pharmacy store operations
  • Dispensing claims processing

Medical Institution Logistics and SPD

Overview
Services that outsource medical institutions' logistics operations to support efficiency and safety management.
Competitiveness
High-quality logistics services leveraging specialized expertise
Customers
  • Hospitals
  • Clinics
  • Nursing facilities
  • Medical corporations
  • Health facilities
  • Welfare facilities
  • Pharmacies
  • Local governments
  • Medical equipment manufacturers
  • Pharmaceutical companies
Products
  • In-hospital logistics agency services
  • Pharmaceutical management systems
  • SPD packages
  • Pharmaceutical inventory management
  • Test drug delivery management
  • Logistics efficiency systems
  • Medical materials management
  • Pharmaceutical supply management
  • Pharmaceutical transportation
  • Data analysis support

Medical-related Research and Development

Overview
Provision of specialized services and products for research and development in medical and pharmaceutical fields.
Competitiveness
Advanced specialized knowledge and research support capabilities
Customers
  • University research institutions
  • Pharmaceutical companies
  • Medical equipment manufacturers
  • Medical-related ventures
  • Clinics
  • Researcher groups
  • Government research institutions
  • Medical service companies
  • Academic societies
  • Specialized institutions
Products
  • Clinical test drugs
  • Pharmaceutical development support
  • Research reagents
  • Medical equipment development
  • Data analysis
  • Pharmacological research services
  • Clinical trial support
  • Quality inspections
  • Safety testing
  • Research materials

Dispensing Equipment and Machinery Sales

Overview
Sales and support of equipment and management tools for dispensing sites.
Competitiveness
Diverse product lineup and implementation support
Customers
  • Compounding pharmacies
  • Medical institutions
  • Pharmacy chains
  • Welfare facilities
  • Home medical facilities
  • Drugstores
  • Nursing facilities
  • Clinics
  • Medical wholesalers
  • Pharmacist associations
Products
  • Dispensing robots
  • Measuring instruments
  • Drug storage cabinets
  • Medication guidance tools
  • Electronic medication history systems
  • Dispensing counters
  • Blood pressure monitors
  • Electronic scales
  • Medication management systems
  • Dispensing support software

Home Medical Care and Nursing Support

Overview
Comprehensive support services to improve the quality of home medical care and nursing.
Competitiveness
Regionally rooted care network and accumulated expertise
Customers
  • Visiting care services
  • Home medical institutions
  • Nursing homes
  • Community comprehensive support centers
  • Pharmacies
  • Welfare facilities
  • Care managers
  • Medical corporations
  • Nursing facilities
  • Local governments
Products
  • Home medication management
  • Visiting dispensing services
  • Care plan integration
  • Nursing supplies
  • Health management services
  • Medication guidance support
  • Regional collaboration systems
  • Medical equipment rental
  • Rehabilitation support
  • Caregiver education

Medical Nutritional Foods and Health Food Sales

Overview
Provides nutritional supplements for medical sites and general consumers.
Competitiveness
High-quality products tailored to medical needs
Customers
  • Hospital nutrition departments
  • Compounding pharmacies
  • Nursing facilities
  • Health food retailers
  • Medical institutions
  • Welfare facilities
  • Sports facilities
  • Elderly facilities
  • Drugstores
  • General consumers
Products
  • Tube feeding agents
  • Foods for specified health uses
  • Supplements
  • Health supplemental foods
  • Medical nutritional supplements
  • Functional beverages
  • Protein products
  • Energy bars
  • Nutritional jelly
  • Vitamin agents

Pharmaceutical Delivery and Logistics Services

Overview
Provides safe and reliable logistics services from pharmaceutical delivery to storage.
Competitiveness
Advanced temperature control systems and rapid response capabilities
Customers
  • Pharmaceutical companies
  • Medical institutions
  • Wholesalers
  • Compounding pharmacies
  • Drugstores
  • Medical-related companies
  • Logistics providers
  • Local governments
  • Nursing facilities
  • Welfare organizations
Products
  • Pharmaceutical transport and delivery
  • Temperature-controlled logistics
  • Warehouse management services
  • Delivery route optimization
  • Inventory management
  • Delivery traceability
  • On-demand delivery
  • Logistics consulting
  • Emergency delivery
  • Pharmaceutical storage

Pharmaceutical Information Services

Overview
Various support services to promote the latest pharmaceutical information and appropriate use.
Competitiveness
Reliable information provision and specialized knowledge
Customers
  • Medical institutions
  • Compounding pharmacies
  • Pharmaceutical companies
  • Clinical research institutions
  • Medical associations
  • Pharmacist associations
  • Medical education institutions
  • Government agencies
  • Patient support groups
  • Medical consultants
Products
  • Pharmaceutical information database
  • Prescription support systems
  • Side effects and precautions information
  • Training programs
  • Academic seminars
  • Latest medical news
  • Real-world data provision
  • Appropriate medication use support
  • Medication history management
  • Medication guidance materials

Pharmaceutical Manufacturing Outsourcing and OEM Business

Overview
Undertakes manufacturing of pharmaceuticals and related products, supporting product development.
Competitiveness
Trusted quality management and technical support structure
Customers
  • Pharmaceutical companies
  • Medical equipment manufacturers
  • Health food manufacturers
  • Cosmetics companies
  • Medical ventures
  • Research institutions
  • Development companies
  • Small-scale manufacturers
  • Domestic and international manufacturing companies
  • Academic institutions
Products
  • Pharmaceutical manufacturing outsourcing
  • R&D support
  • Quality management
  • Manufacturing process optimization
  • Prototype development
  • Labeling and packaging
  • Product certification support
  • Quality inspections
  • Regulatory compliance
  • Manufacturing technology provision

Medical-related Consulting

Overview
Specialized support for management improvement and business expansion in the medical industry.
Competitiveness
Proposal capabilities based on extensive industry knowledge and track record
Customers
  • Pharmaceutical companies
  • Hospital management
  • Pharmacy groups
  • Medical institutions
  • Health organizations
  • Medical ventures
  • Local governments
  • Medical corporations
  • Medical-related IT companies
  • Regional healthcare support groups
Products
  • Business efficiency consulting
  • Pharmaceutical distribution improvement
  • IT implementation support
  • Compliance guidance
  • Market analysis
  • Medical institution management support
  • Education and training
  • Patient response support
  • Quality management support
  • Strategy formulation support

IT Solutions for Pharmaceutical Wholesalers

Overview
IT services to promote business efficiency and information management at wholesaling sites.
Competitiveness
Customization capabilities tailored to industry needs
Customers
  • Wholesalers
  • Pharmaceutical sales companies
  • Compounding pharmacies
  • Hospitals
  • Medical institutions
  • Pharmaceutical companies
  • Logistics companies
  • Medical equipment sales companies
  • Pharmacist associations
  • Medical-related service providers
Products
  • Sales management systems
  • Inventory management systems
  • Logistics optimization software
  • Data analysis tools
  • Customer management systems
  • Order management systems
  • Mobile apps
  • Electronic contract services
  • Safety management systems
  • Information sharing platforms

Competitive Advantage

Strengths

  • Extensive partnership network with local wholesalers
  • Stable market position as a major in the pharmaceutical wholesaling industry
  • Broad business deployment through holding company structure
  • Diversified medical services via numerous subsidiaries
  • Long years of experience and trusted brand strength
  • Abundance of personnel with specialized knowledge
  • Solid financial base and substantial capital
  • Business efficiency through IT services
  • Close relationship building with medical institutions
  • Supply capabilities via robust logistics and SPD business
  • Deep penetration into local markets
  • Medical-related R&D support capabilities
  • Customer base expansion through pharmacy operations
  • Diverse group of medical-related subsidiaries
  • High compliance framework

Competitive Advantages

  • Centered in the Tokyo metropolitan area, advancing area expansion through partnerships with local wholesalers, maintaining a broader sales network than competitors.
  • Broad business segments extending beyond pharmaceutical wholesaling to pharmacies, logistics services, and R&D support, with diversified revenue sources.
  • Close collaboration with medical institutions based on long-term transaction relationships and trust, achieving high customer retention and supply credibility.
  • Utilizes IT systems for efficient inventory and order management, enabling cost reductions and rapid logistics response.
  • Solid financial base allows large-scale investments, M&A, and new business launches, enabling swift responses to enhance corporate value.
  • Possesses pharmacy operation and management capabilities tailored to regional medical needs, realizing rooted customer services.
  • Thorough quality and safety management, with strengthened compliance framework and legal adherence, building stable supply systems.
  • Industry-spanning collaboration via subsidiaries enables more comprehensive business scope and services than standalone companies.
  • Proactive in medical R&D support and new technology adoption, strengthening competitiveness against future market changes.
  • Geographically broad sales territories with strengths in local and small markets, enabling share expansion.
  • Leverages specialized knowledge and experience in pharmaceutical wholesaling to provide superior customer support over competitors.
  • Oversees safe and reliable pharmaceutical distribution, earning trust from medical institutions.
  • Flexible and rapid business execution through cooperation among multiple pharmaceutical specialist subsidiaries.
  • Deploys efficient in-hospital logistics services starting with SPD business tailored to market needs, enhancing value for hospital management.
  • Focuses on improving corporate governance and transparency, securing trust from shareholders and stakeholders.

Threats

  • Rising business costs due to stricter pharmaceutical industry regulations.
  • Intensifying price competition from rival companies.
  • Declining profit margins from the spread of generic drugs.
  • Short-term profit pressure from increased IT investments.
  • Supply-demand fluctuations due to external factors like new infectious diseases.
  • Risks of disasters to logistics networks or delivery delays.
  • Changes in distribution structures due to healthcare system reforms.
  • Decline in operational efficiency from talent acquisition difficulties.
  • Profit fluctuations from international raw material price changes.
  • Management instability from investment fund interventions.
  • Intensified competition from industry restructurings and consolidations.
  • Payment delay risks from deteriorating finances of client medical institutions.

Innovations

2022: Advancing digitalization of SPD business

Overview
Introduced IT systems to SPD services for medical institutions to improve inventory and dispensing efficiency.
Impact
Achieved cost reductions through business efficiency and improved customer satisfaction.

2023: Overhaul of compounding pharmacy management systems

Overview
Renewed management systems for compounding pharmacies using latest IT technologies to improve operational efficiency.
Impact
Achieved faster prescription processing and reduced human errors.

2024: Introduction of logistics network automation

Overview
Introduced robots and automation to warehouse logistics operations to reduce labor costs and pursue efficiency.
Impact
Successfully increased logistics processing capacity by 20% and reduced costs by 15%.

2021: Strengthening holding company structure and organizational reorganization

Overview
Strengthened holding company structure for the corporate group to achieve efficient management.
Impact
Contributed to optimal allocation of management resources and rapid business deployment.

2023: Introduction of environmentally friendly logistics vehicles

Overview
Newly introduced low-environmental-impact logistics vehicles to reduce CO2 emissions.
Impact
Contributed to reducing environmental burden in the logistics division.

2022: Overhaul of pharmaceutical safety management systems

Overview
Renewed IT systems to strengthen safety management throughout the distribution process.
Impact
Reduced accident risks and strengthened quality assurance framework.

2020: Expansion of compounding pharmacy network

Overview
Expanded service network nationwide through subsidiary acquisitions and partnerships.
Impact
Successfully increased prescription volume and market share.

2023: Strengthening development of medical test reagents

Overview
Expanded R&D department to advance development of high-value-added reagent lineup.
Impact
Contributed to revenue growth through new product releases.

2024: Introduction of AI-based demand forecasting system

Overview
Activated AI technology-based forecasting systems for optimizing distribution and inventory management.
Impact
Achieved 10% improvement in inventory turnover and reduced stockout risks.

2021: Local wholesaler collaboration enhancement program

Overview
Advanced strategic partnerships with local pharmaceutical wholesalers to strengthen network.
Impact
Expanded share in local markets and strengthened regional healthcare support.

Sustainability

  • Introduction of environmentally friendly logistics vehicles and setting CO2 reduction targets
  • Strengthening pharmaceutical safety management and compliance framework
  • Active participation in regional healthcare support activities and information sharing
  • Reducing wasteful resource consumption through business efficiency via IT
  • Education and initiatives for employee health and safety
  • Proper waste disposal and recycling promotion
  • Improved transparency and governance strengthening through holding company structure
  • Fulfilling social responsibilities through collaboration with local communities
  • Appropriate disclosure and reporting of sustainability information
  • Utilization of diverse talent and promotion of work-style reforms
  • Compliance with environmental and social standards in the supply chain
  • Ensuring regional healthcare safety through appropriate pharmaceutical distribution