Since announcing our previous Mid-term Plan in 2022, a number of challenges have arisen due to changes in the external business environment. To address these challenges, we formulated our Value Creation Plan 2027 with a focus on the area of Diagnostics & Life Sciences.
| Current Status |
| On Track |
Reorganization of business segments
Healthcare IT Solutions
- Expanded customer base and captured policy-related demand through Wemex Healthcare Systems (WHS) acquisition.
- Reorganized health management business within PHC Group.
Biomedical Business
- Launched a new product in the cell and gene therapy (CGT) field: Live Cell Metabolic Analyzer (LiCellMo™).
|
| Off Track |
Diabetes Management (BGM/CGM)
- The BGM market has shrunk more than expected in developed countries, leading to greater than anticipated deterioration in revenue and profit margins.
- CGM shows strong promise, though global user growth is falling short of expectations driven by operational challenges and low awareness.
Pathology Business
- Transformation is ongoing, with notable progress, though pace is slower than expected.
LSI Medience
- Inappropriate management of a precision control chart emerged and has been addressed.
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Immediate Challenges
Business environment volatility is highlighting areas where we are facing headwinds that will be addressed.
Decline in Cash Generation
Deterioration in Capital Efficiency
Delay in Monetizing Three Growth Areas
- Diabetes Management:
- Market expansion due to increases in the number of people with diabetes and transition from BGM to CGM, mainly in developed countries.
- Healthcare Solutions:
- Advancement of healthcare DX, increased demand for esoteric testing, and robust demand for drug development support.
- Diagnostics & Life Sciences:
- Increasing importance of affordability of advanced treatments, including early detection of cancer and personalized medicine, and strong growth potential of the cell and gene therapy market.
Formulated a new vision and developed a new Value Creation Plan centered on leveraging strengths in the Diagnostics & Life Sciences domain
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