Consolidated financial results and position
|Ratio of operating income|
|Ratio of ordinary profits|
|Profit attributable to owners of parent(¥million)||(542)||878||1,550||1,487||1,822|
|Ratio of Shareholders’|
Operating income and ratio of operating income
Ordinary profits and ratio of ordinary profits
Profit attributable to owners of parent
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.
The CMIC Group has been engaged in “Project Phoenix” to adapt ourselves to the rapidly changing external environment in a timely and flexible manner. Starting in April 2018, we have started “Project Phoenix 3.0″ to expand the application of our unique business model “PVC” (that provides end-to-end support for pharmaceutical companies) to the healthcare arena and promote new business creation. In addition, to achieve the mid-to-long-term corporate value improvement of our group, we have developed the mid-term plan (FY2019-2021) that includes focus activity items such as acceleration of PVC model, expansion of globalization, and creation of healthcare business.
The next fiscal year will be the interim year of the mid-term plan, and both sales and profits are expected to increase compared with the consolidated fiscal year ended September 30, 2019 while making these upfront investments.
|Profit attributable to owners of parent||1,822||2,300||26.2%|
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 current consolidated 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.
While striving to secure and train personnel in clinical services, we are promoting the use of the medical database in PMS (Post Marketing Surveillance) or clinical research support business. Further, we are promoting business in the Asia and Oceania region, a growing market for drugs and medical devices, by establishing a local affiliate in Australia.
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. We have concluded the partnership agreement with Sophion Bioscience, a global pioneer in ion channel related business, in October 2018 to expand safety pharmacology services.
Sales and operating income exceeded those of the previous year thanks to robust growth in new and existing contracts.
In this business, we provide services primarily to pharmaceutical companies to support drug formula development and manufacturing.
In the current consolidated 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. In addition, the new parenteral drug manufacturing facility in Ashikaga with capabilities to formulate high potency drugs has started the clinical trial material production, and is enhancing the sales activities to manufacture both clinical trial materials and commercial drugs. In March 2019, CMIC CMO Co., Ltd. has concluded business alliance agreements with U.S.-based corporations that possess 3DP technology platform and sophisticated flexible dosing tablet technology, to introduce new technologies for drug manufacturing and improve our formulation technologies. In June 2019, CMIC CMO Co., Ltd. has succeeded the Nishine Plant from Astellas Pharma Tech, Astellas’ production subsidiary in Japan, and CMIC CMO NISHINE Co., Ltd. has started its operations to increase the manufacturing capabilities for the oral solid dose, our main dosage form.
Sales exceeded that of the previous year due to increase of contract production sales in Japan and the United States, with added results from CMIC CMO Nishine Co., Ltd. Operating income also exceeded that of the previous year absorbing increased depreciation cost for the new parenteral drug manufacturing facility in Ashikaga.
In this business, we provide sales- and marketing-support services, primarily to pharmaceutical companies.
In the current consolidated fiscal year, in addition to the medical representative (MR) dispatch service, CMIC Ashfield Co., Ltd. is providing comprehensive solution that combines multiple communication channels and various services including the opening of “MA academy”, the first private sector institution to train Medical Affairs (MA) personnel.
Sales exceeded that of the previous year thanks to the steady execution of both new and existing projects. However, operating income was below that of the previous year due to the preceding costs generated to take on new projects.
In this business, we provide site management organization (SMO) and healthcare information services, primarily to medical institutions, patients, and general consumers, to support maintaining and promoting health and healthcare.
In the current consolidated fiscal year, we are further strengthening the oncology capabilities in the SMO operations, improving the quality of our operations, and providing new services. In April 2019, BELL24-Cell Product, Inc. (now Site Support Institute Co., Ltd.) became our group company to further enhance our presence in Hokkaido.
As healthcare information services, we are providing information of clinical trials using the healthcare portal site and starting the “SelCheck” (self-screening) services for early detection and prevention of aggravation of disease. In June 2019, we succeeded “harmo”, the electronic prescription record service, from Sony Corporation to enhance patient support programs including treatment adherence improvement and to create health support business utilizing technologies.
Sales and operating income both exceeded those of the previous year thanks to the steady execution of new projects.
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 and diagnostics.
In our orphan drug business, OrphanPacific, Inc., is 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.
In the diagnostics business, we are working to expand the market and strengthen promotions of the kidney disease biomarker “human L-type fatty acid-binding protein (L-FABP) kit”, developed for the purpose of diagnosing renal disease.
Sales exceeded that of the previous year due to sales increase of orphan drugs. Although operating loss was recorded due to R & D expenses and others, we are continuing to expand our business scale through provision of new solutions aiming for positive turnaround.
|Interim Dividend (yen)||Year End Dividend (yen)||Annual (yen)||Dividend Payout|
See “Dividends” in the Stock Information for details of past.