Suzuken

Basic Information

Stock Code
9987
Industry
Wholesale
Category Detail
Pharmaceuticals & Medical Products Wholesalers
Prefecture
Aichi Prefecture
Establishment Year
August 1946
Listing Year
August 1994
Official Website
https://www.suzuken.co.jp/
TSE Information
TSE Information
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Other Companies
Alfresa, Hokuyaku Takeyama Holdings, Vital KSK Holdings, Cosmo Bio, Ooki Healthcare Holdings, Solasia Pharma, Medipal, Astena Holdings, Toho HD, Koa Shoji Holdings

Overview

Suzuken, founded in 1946, specializes in pharmaceutical wholesaling and has established itself as a leading national wholesaler in the Japanese industry.

Current Situation

Suzuken achieved consolidated net sales of 2.2134 trillion yen and net profit of 28.2 billion yen in the fiscal year ended March 2020, maintaining a stable financial base as a major pharmaceutical wholesaler. It operates sales bases across all 47 prefectures nationwide, holding a top market share as a comprehensive pharmaceutical trading company. The group encompasses numerous subsidiaries, expanding beyond pharmaceutical wholesaling into elderly care-related services and medical consulting. In recent years, it has strengthened international expansion through capital and business alliances with Korean pharmaceutical wholesalers and Pharmarise Holdings. Following bid-rigging issues with the Japan Fair Trade Commission, it is focusing on enhancing compliance. It is also advancing sustainable social contributions and logistics facility expansions, with plans to integrate subsidiaries in 2024. Moving forward, it aims to boost competitiveness by strengthening its business foundation and promoting digitalization.

Trivia

Interesting Facts

  • The only national wholesaler with bases in all 47 prefectures in pharmaceutical wholesaling.
  • Founding traces back to Suzuki Kenzo Shoten in 1932, among the oldest in the pharmaceutical wholesaling industry.
  • Pioneered IT system introduction in the 1990s, leading industry efficiency.
  • Entered medical and elderly care dedicated SNS operations, pursuing innovation in digital domains.
  • In Asia, holds 45% stake in Korean pharmaceutical wholesaler, expanding influence.
  • In 2020, prosecuted by Japan Fair Trade Commission for antitrust violation, drawing significant social attention.
  • Operates numerous logistics centers nationwide, focusing on safe pharmaceutical delivery.
  • Owns multiple health-related product manufacturing subsidiaries, leveraging group synergies.
  • Once the largest in pharmaceutical wholesaling, now holds 3rd place in the industry.
  • Has established emergency pharmaceutical delivery system for disasters.
  • Handles medical equipment wholesaling, but mainstay is pharmaceutical wholesaling.
  • Over 14,000 employees, one of the largest in the medical wholesaling industry.
  • Long-standing company emblem is the 'Bell Mark,' currently using a revived design.
  • History of rapid growth through M&A in national pharmaceutical wholesaling.
  • Capital alliance with Pharmarise HD is one of the major recent management developments.

Hidden Connections

  • Suzuken forms one of the four major pharmaceutical wholesalers alongside Medipal Holdings, Alfresa, and Toho Pharmaceutical.
  • The history of its Nagoya founder affected by the Tokyo Great Air Raid influences the company's foundation.
  • Rushed emergency delivery of antidotes during the subway sarin incident, with a track record of social contribution.
  • Capital alliance with Korean distributor Pokusan Nice, entering overseas pharmaceutical wholesaling.
  • Particularly strong emphasis on logistics infrastructure compared to peers.
  • Acquired medical and elderly care SNS Embrace, proactively tackling digital medicine.
  • Long-standing emblem change closely related to corporate culture evolution.
  • Received strict penalties from Japan Fair Trade Commission due to pharmaceutical bid-rigging issues.

Future Outlook

Growth Drivers

  • Strengthening nationwide logistics system and efficient delivery network
  • Expansion of specialty pharmaceutical market for rare diseases
  • Further business efficiency improvements through digital IT
  • Increasing demand from aging in domestic medical and elderly care markets
  • Customer base stabilization through strengthened regional medical collaborations
  • Acceleration of overseas business expansion centered on Asia
  • Business area expansion and synergy creation through M&A
  • Sustainable business operations and compliance strengthening
  • Growth in new businesses such as medical and elderly care dedicated SNS
  • Technological innovation in pharmaceutical subsidiaries and high-value product development
  • Differentiation through introduction of new digital services
  • Enhanced service deployment aimed at improving customer satisfaction

Strategic Goals

  • Achieve No. 1 nationwide share in pharmaceutical wholesaling
  • 20% sales increase in specialty pharmaceuticals
  • Complete digitalization and energy-saving of logistics network
  • Achieve ¥50 billion in sales from medical and elderly care IT-related businesses
  • Expand overseas sales ratio to over 10%
  • Promotion of environmental and social activities toward sustainable society
  • Business diversification and growth area expansion through M&A
  • Completion of safe and reliable pharmaceutical supply system
  • Realization of employee diversity and improved work environment
  • Building medical and elderly care support system in collaboration with local communities

Business Segments

Pharmaceutical Wholesaling

Overview
Provides pharmaceutical and medical supplies wholesaling services to medical institutions, serving as a core of regional healthcare.
Competitiveness
Nationwide national wholesaler network and broad product lineup
Customers
  • Hospitals
  • Clinics
  • Pharmacies
  • Medical clinics
  • Drugstores
  • Government agencies
  • Major pharmaceutical manufacturers
  • Small and medium pharmaceutical companies
  • Home medical care services
Products
  • General pharmaceuticals
  • Prescription pharmaceuticals
  • Generic pharmaceuticals
  • Specialty pharmaceuticals
  • Vaccines
  • Medical consumables
  • Elderly care supplies
  • Medical equipment
  • Diagnostic reagents
  • Medical support supplies
  • Functional foods
  • Pharmaceutical development support
  • Patient support programs

Logistics and Delivery Services

Overview
Supports medical sites with pharmaceutical-dedicated logistics infrastructure and delivery services.
Competitiveness
High-quality logistics expertise specialized in pharmaceuticals and nationwide network
Customers
  • Pharmaceutical companies
  • Hospitals
  • Pharmacies
  • Care facilities
  • Medical equipment manufacturers
  • Distribution companies
  • Local governments
  • Medical associations
Products
  • Pharmaceutical-dedicated logistics services
  • Temperature-controlled delivery systems
  • Order management systems
  • Inventory management systems
  • Refrigerated and frozen warehouses
  • Transport management services
  • Crisis management logistics
  • Logistics consulting
  • B2B logistics platforms

Medical and Elderly Care Support Services

Overview
Support solutions contributing to efficiency and service improvement in medical and elderly care sites.
Competitiveness
Specialized IT services and regionally embedded support system
Customers
  • Care facilities
  • Elderly facilities
  • Pharmacies
  • Medical professionals
  • Patient groups
Products
  • Elderly care supplies sales
  • Medical and elderly care dedicated SNS
  • Patient support services
  • Home care pharmaceuticals
  • Elderly care consulting
  • Medical information provision

Specialty Pharmaceutical Coordination

Overview
Specialized in rare diseases, providing advanced procurement and patient support.
Competitiveness
High-value services by consultants with specialized knowledge and extensive experience
Customers
  • Rare disease patients
  • Pharmaceutical companies
  • Medical institutions
  • Specialized medical facilities
Products
  • Rare disease drug procurement support
  • Patient response programs
  • Advanced medical drug management
  • Clinical trial support services

Pharmaceutical Manufacturing Subsidiaries

Overview
Has pharmaceutical manufacturing subsidiaries within the group, supporting stable pharmaceutical supply.
Competitiveness
Manufacturing technology and high-quality control
Customers
  • Life science companies
  • Pharmaceutical manufacturers
  • Wholesalers
Products
  • Quasi-drugs
  • Formulation development
  • Raw material supply
  • Bulk manufacturing

Overseas Business

Overview
Expanding into major Asian markets and building a global network.
Competitiveness
Operational capabilities based on partnerships with local companies
Customers
  • Korean pharmaceutical wholesalers
  • Taiwanese pharmaceutical companies
  • Overseas medical institutions
Products
  • Pharmaceutical wholesaling
  • Local logistics services
  • Medical-related consulting

Medical Information Services

Overview
Provides IT solutions to support information sharing and efficiency in medical sites.
Competitiveness
System development tailored to medical industry characteristics
Customers
  • Medical institutions
  • Pharmaceutical companies
  • Care facilities
Products
  • Medical SNS
  • Patient data management
  • Business efficiency software

Logistics Center Operations

Overview
Manages core logistics hubs to achieve efficient delivery.
Competitiveness
Large-scale network and automation technology implementation
Customers
  • Pharmaceutical manufacturers
  • Wholesale companies
  • Distribution firms
Products
  • Warehouse management
  • Inventory optimization
  • Delivery coordination

Medical Consumables Sales

Overview
Provides various consumables used in medical and elderly care sites.
Competitiveness
Broad product lineup and rapid supply capabilities
Customers
  • Medical institutions
  • Care facilities
  • Research institutions
Products
  • Gauze
  • Syringes
  • Testing kits
  • Hygiene products

Pharmacy Operation Support

Overview
Deploys support to improve pharmacy operation efficiency and enhance services.
Competitiveness
Field-oriented system development and diverse solution provision
Customers
  • Pharmacies
  • Drugstores
  • Medical corporations
Products
  • Business efficiency systems
  • Medical information provision
  • Management consulting

Elderly Care Service Expansion

Overview
Services tailored to the rapidly expanding elderly care market.
Competitiveness
Regionally embedded support and IT integration
Customers
  • Elderly facilities
  • Home caregivers
  • Care managers
Products
  • Elderly care supplies
  • Elderly care information sharing tools
  • Care support services

Pharmacy Chain Partner

Overview
Strategic partnerships supporting industry restructuring and growth of pharmacies.
Competitiveness
Deep industry network and financial strength
Customers
  • Pharmacy chains
  • Regional pharmacies
Products
  • Capital support
  • Logistics provision
  • Management know-how sharing

Competitive Advantage

Strengths

  • Network of bases covering all 47 prefectures nationwide
  • Stable market share as a leading pharmaceutical wholesaler
  • Broad lineup of medical and elderly care-related products
  • High-quality logistics infrastructure and delivery systems
  • Comprehensive strength from multiple group companies
  • Capabilities in specialty pharmaceuticals for rare diseases
  • Expansion into overseas markets (Korea, etc.)
  • Expertise in implementing and operating medical information systems
  • Established customer base and trading relationships
  • Strong financial foundation
  • Advanced operation of medical and elderly care dedicated SNS
  • Ownership of top-class pharmaceutical subsidiaries in the industry
  • Promotion of IT in logistics
  • Track record in inventory optimization systems
  • Free order systems provided to customers

Competitive Advantages

  • Industry's only nationwide national wholesaler
  • Diversified portfolio of pharmaceutical and medical equipment wholesaling
  • Advanced specialty pharmaceutical coordination business
  • Advanced logistics management and integrated systems
  • Customer loyalty from multifaceted medical and elderly care services
  • Enhanced international competitiveness through capital alliance with Korean pharmaceutical wholesaler
  • Comprehensive medical consulting and information provision functions
  • Business efficiency using latest IT technologies
  • Synergies with robust pharmaceutical subsidiary group
  • Trusted relationships with government offices and major medical institutions
  • Improved compliance and legal adherence capabilities
  • Sales force responsive to diverse customer needs
  • Service integration covering both medical and elderly care domains
  • Efficient warehouse operations and delivery networks
  • Regionally embedded sales expansion and information sharing

Threats

  • Intensifying competition in pharmaceutical wholesaling squeezing margins
  • Impact on earnings from government drug price revisions
  • Risk of antitrust violations from Japan Fair Trade Commission
  • Fierce price competition in generic drug market
  • Logistics disruptions from novel coronavirus or other infectious diseases
  • Industry structure changes from healthcare system reforms
  • Decline in competitiveness from delays in DX promotion
  • Regulatory risks in overseas expansion
  • Potential logistics efficiency deterioration from labor shortages
  • Supply chain disruption risks
  • Declining profit margins from price competition
  • Risk of contract failures for high-cost medical products

Innovations

2024: Absorption merger of Jingu Yakuhin Co., Ltd.

Overview
Absorbed and merged group subsidiary Jingu Yakuhin to strengthen integrated operations.
Impact
Achieves management efficiency improvements and synergy creation

2023: Capital and business alliance with Pharmarise Holdings

Overview
Capital alliance aimed at strengthening pharmaceutical wholesaling collaboration and mutual business expansion.
Impact
Enhanced market competitiveness through joint business development

2021: Subsidiary of medical and elderly care dedicated SNS operator

Overview
Made Embrace Co., Ltd., operator of SNS for medical and elderly care industries, a subsidiary.
Impact
Activates information sharing in medical sites and creates new revenue sources

2020: Introduction of enhanced compliance program

Overview
Enhanced internal education and audit systems as relapse prevention measures following antitrust violation incident.
Impact
Aims to restore corporate value trust

2020: Chubu Logistics Center construction plan initiated

Overview
Signed preliminary contract for construction of state-of-the-art logistics center in Kasugai City, Aichi Prefecture.
Impact
Contributes to logistics efficiency and service enhancement

2024: Full overhaul of medical IT systems

Overview
Updated order and inventory management systems with introduction of latest technologies.
Impact
Business efficiency and customer service improvements

2022: Strengthened procurement system for specialty drugs for rare diseases

Overview
Focused on expanding specialized coordination department to broaden patient support.
Impact
Market share expansion in niche markets

2023: Strengthened alliance with Korean pharmaceutical distribution company

Overview
Expanded stake in Pokusan Nice to promote overseas expansion.
Impact
Expanded presence in Asia

2021: Initiated introduction of logistics robots

Overview
Promoting warehouse automation and labor-saving using latest technologies.
Impact
Achieves personnel cost reductions and faster delivery

2020: Medical and elderly care DX promotion project launched

Overview
Company-wide initiative to improve business efficiency with digital technologies.
Impact
Expected long-term competitiveness improvement

Sustainability

  • 全国47都道府県の地域貢献と災害対応強化
  • 医薬品適正流通による環境負荷低減
  • 物流センターの省エネ設備導入推進
  • 従業員へのコンプライアンス教育の徹底
  • 医療・介護サービスの質向上を通じた社会貢献
  • 再生可能エネルギー利用の拡大検討
  • ペーパーレス化推進による資源節約
  • 物流車両の低公害化への取り組み
  • 多様な人材の活躍促進とダイバーシティ推進
  • 医療廃棄物適正管理の強化
  • 地域医療連携ネットワークの活性化
  • 安全・安心な医薬品供給体制の構築