Shareholders equity and ratio of shareholders equity
About the pharmaceutical industry
In the pharmaceutical industry, while creation of innovative drugs is anticipated through technological innovation and industry-government-academia collaboration towards providing personalized medicine or “precision medicine”, the drug pricing rules have been revised focusing on validity/accuracy improvement of the drug pricing calculation formula and appreciation of innovative technologies is considered due to impact on the health insurance budget. Further improvement of productivity and efficiency is expected for the pharmaceutical industry for transformation to the industrial structure with more global competitiveness. New technologies called the Fourth Industrial Revolution such as artificial intelligence (AI) or IoT are bringing significant changes to the society, and as way of medicine and people’s ideas of health change in the healthcare arena, industry, government, academia and civil society are collaborating to achieve innovation to address the decreasing birthrate and aging population.
Since it was quite difficult to reasonably calculate our future business performance due to the impact of COVID-19 including delay, postponement, and cancellation of many pharmaceutical drug development projects, CMIC Group’s future outlook was previously undetermined. Following the recent partial resumption of new drug development projects, we calculated and revised its forecast based on all available information gathered at this point. Our FY2020 performance forecast for sales is expected to be 75,000 million yen, operating income is expected to be 2,300 million yen, ordinary income is expected to be 2,600 million yen, and profit attributable to owners of parent is expected to be 1,350 million yen.
2019/9 results （¥millions）
2020/9 forecast （¥millions）
Profit attributable to owners of parent
Operating income and ratio of operating income
Forecast for FY ending Sept. 2020 (by segment)
In this business, we provide services primarily to pharmaceutical companies to support drug development.
In the 3rd quarter of the current fiscal year, we are supporting overseas companies entering the Japanese market and non-healthcare companies entering the healthcare sphere, promoting measures to address sophisticating development needs including biopharmaceuticals and regenerative medicines, and expanding our presence in Asia.
For clinical services, we are promoting PVC projects involving multiple business units, clinical trials with the latest method and technologies (e.g. Virtual clinical trials with on-line doctor consultation, improving the efficiency of clinical trials with electronic prescription records), and improving the expertise and technical capabilities of our talents.
For non-clinical services, our laboratories in Japan and the United States are further collaborating to provide drug discovery support for advanced medicine including nucleic acid drugs and regenerative medicine.
Sales were below the same period last year due to the impact of delay in receiving orders and cancellation/postponement of existing projects following the global pandemic of COVID-19 and downsizing/increased complexity of development projects. Operating income was also below the same period last year impacted by reduced operation rates and listing of unprofitable projects.
In this business, we provide services primarily to pharmaceutical companies to support drug formula development and manufacturing. In the 3rd quarter of the current fiscal year, CDMO business is further improving technical capabilities, developing low-cost production structure, and enhancing competitiveness through strategic capital investment as a global pharmaceutical drug manufacturing platform that includes formulation design, investigational new drug manufacturing, and commercial production. Sales and operating income exceeded the same period last year thanks to increased contract volume in Japan and the sales contribution by CMIC CMO Nishine Co., Ltd., despite the reduction of contract volume following the inventory adjustment by customers in the United States.
In this business, we provide sales- and marketing-support services, primarily to pharmaceutical companies. In the 3rd quarter of the current fiscal year, in addition to the medical representative (MR) dispatch and other related services, we are providing comprehensive solution that combines multiple communication channels and various services including dispatch and training of Medical Affairs personnel. Sales and operating income exceeded the same period last year thanks to the steady progress in MR dispatch projects acquired in the previous period and the operation rates maintained at the high level.
In this business, we provide SMO services, healthcare services related to treating, maintaining, and promoting the health for medical institutions, patients and general consumer, and services related to BPO and human resources. In the 3rd quarter of the current fiscal year, we are further strengthening the oncology capabilities in the SMO operations and providing new services. We are creating new business for early detection and prevention of aggravation of disease, including “harmo” electronic prescription record service and “SelCheck” (self-screening) service. We will strive to win new SMO business orders and aim to expedite the in-flow of income for the new healthcare business.
Sales were below the same period last year despite growth in healthcare services, due to reduction in work volume for some BPO/Staffing services. Operating income was below the same period last year impacted by lower sales of BPO/Staffing services and prior investment cost to create new healthcare business models.
Innovative Pharma Model Business
IPM business provides new business solutions to pharmaceutical companies that combine value chains and marketing authorization licenses (intellectual properties) possessed by our group. We are mainly delivering development and marketing services for orphan drugs. In the 3rd quarter of the current fiscal year, we are selling orphan drugs, including products developed in-house. Further, we are strengthening business foundation through provision of IPM platform such as supporting foreign companies entering the Japanese market and providing strategic options to pharmaceutical companies in accordance with their business model changes. We will further expand the business scale and reach profitability by continuing to provide new business solutions.
Though sales were below that of the corresponding period last year due to reduction in sales volume of some products, operating surplus was recorded due to the effect of cost reduction and commission income.
2019/9 results （¥millions）
2020/9 forecast （¥millions)
Interim Dividend (yen)
Year End Dividend (yen)
Dividend Payout Ratio（%)
See “Dividends” in the Stock Information for details of past.
Inquiries about our services
Click below if you are interested in outsourcing your operations to us.
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.