Integrated Report 2023

PHC Group Business StrategyDiagnostics & Life Sciences

Contributing to the evolution of new
treatments

Nobuaki Nakamura

Nobuaki Nakamura

Corporate Officer, PHC Holdings Corporation
President and Representative Director, Director of Biomedical Division, PHC Corporation

Message

The Biomedical Division entered the life science field in 1966 with the sale of medical refrigerators designed and developed for the purpose of storing pharmaceuticals.
By providing high-quality and highly reliable products and services, we are working to realize the division's mission of ”creating new value in life sciences and medicine and contributing to the creation of a healthy and prosperous society.”
In the future, in the growing cell culture field, PHC Group will strengthen its in-house development by leveraging the target compound detection technology cultivated in blood glucose monitoring (BGM) systems. We will expand the areas in which we contribute to the therapeutic manufacturing process of cell and gene therapy (CGT) and contribute to the evolution of new treatment options.

Overview

The Biomedical Division primarily provides products and services to medical institutions, universities, and pharmaceutical companies, from solutions for sample storage to cell culture, maintaining a sterile research environment, and research and development of cell and gene therapy. We provide innovative equipment and services needed for scientific research around the world.
The predecessor of this business was Sanyo Electric's Biomedical Division, which joined PHC Group in 2012 when Sanyo Electric was integrated into Panasonic. The manufacturing strengths of both companies have since fused and become even stronger together.
Our products, which are based on sophisticated designs that pursue efficiency and ease of use, feature advanced technology, high quality and reliability, and excellent performance and energy efficiency.
We will continue to be a research partner in the life science field with our cutting-edge products and services.

Strengths

  • Products with industry-leading quality and energy-saving performance
    Ultra-low temperature freezers have the industry’s highest level of temperature accuracy, and their energy efficiency is also world-class. Our CO2 incubator features a unique contamination prevention function, and its quality, energy saving, and ease of use are highly rated.
  • Manufacturing power that supports high-quality products
    In the welding process, which requires concentration and precision craftsmanship, we strive to minimize the impact of the welder's condition on the day's performance. Our operations team has the deep knowledge necessary to support high-quality manufacturing, enhanced by an on-site training system within the factory that enables us to further build our expertise.
  • High market share and customer reach
    Our mainstay ultra-low temperature freezers and CO2 incubators have the number-one market share in Japan and the number-two market share globally. Leveraging this position and the trusted relationships we have built with customers, we will continue to develop new products and services in new areas.

FY2022 Snapshot

Revenue: JPY59.3billion

Main Customers

  • Hospitals/clinics
  • Pharmaceutical companies
  • Research institutions/universities
  • Dispensing pharmacies

Main Products/Services

  • Ultra-low temperature freezer
    This product uses highly efficient refrigerant and heat exchangers and insulation technology to achieve world-class energy-saving performance, and is equipped with two independent refrigeration circuits that maintain the temperature at -70℃ even if one breaks down. The ULT freezer provides safe and secure storage.
  • CO2 incubator
    Industry-leading products featuring hydrogen peroxide technology that significantly shortens decontamination time, copper alloy stainless steel that prevents contamination while culturing without interrupting customer research, and UV sterilization technology.
  • Pharmacy solutions
    Equipment that meticulously supports operations from dispensing to administration in pharmacies and hospitals, using automation technology that enables high-speed, accurate, and stable operation and human error prevention.
  • Food catering
    The Delicart, which contributes to the proper temperature of meals at medical facilities, supports safe and efficient meal delivery with advanced functions such as power assist.
  • Ultra-Low Temperature Freezer

    Long-term stable storage of specimens with highly accurate temperature control.

    Ultra-Low Temperature Freezer
  • CO2 Incubator

    Provides an optimal culture environment to improve cell culture productivity.

    CO<sub>2</sub> Incubator
  • Medicinal Cold Storage

    Equipped with natural refrigerant and inverter-controlled compressor, providing significant energy savings.

    Medicinal Cold Storage
  • Wireless Monitoring System

    Stores internal temperature data on the cloud and centrally manages operating status in real time.

    Wireless Monitoring System
  • Automatic Tablet Packaging Machine

    Automates the counting, dispensing, and packaging of prescription drugs. Contributes to improving pharmacist work efficiency and reducing dispensing errors.

    Automatic Tablet Packaging Machine
  • Delicart

    Heat and cold insulation function and power assist driving function. Reduces the burden of serving hospital food.

    Delicart

*1, 2 In-house research

Biomedical Division

Biomedical Division

In the life sciences field, though economic activity has been affected by inflation among private companies, government investment continues to be strong, especially in new treatment options and cutting-edge technologies such as cell and gene therapy (CGT), mRNA medicine, and nucleic acid medicine.
In particular, research and development in the field of CGT involves processes such as cell culture, analysis, and preservation, and with considerable room for market growth in all of these, the overall market is expected to grow by double digits annually.
On the other hand, even in a global inflationary environment, price competition is progressing in some commodity equipment due to the rise of Chinese manufacturers.
For high-value-added products such as ULT freezers and CO2 incubators, we will advance the development of new products to differentiate us from our competitors. As for general-purpose products, we will promote cost reductions by improving manufacturing operations, including leveraging our plant in Indonesia.

We will also focus on the field of cell and gene therapy, which is expected to see significant market growth. In cell culture, cell metabolites is are important indicators in determining the health of cells. Previously, it was difficult to constantly monitor the state of the cells due to manual, intermittent measurement of metabolites. Our cell metabolism analyzer, which uses technology for quantifying specific compounds that we have cultivated through our blood glucose monitoring systems, can continuously measure cell metabolites and visualize the state of cells in real time. This technology allows us to gain new knowledge never obtainable by conventional methods, and through this knowledge, we can contribute to the reliable and stable production of therapeutic cells.

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