Key Initiative 3: Focus on Diagnostics & Life Sciences
For cancers with a high mortality rate, early detection and affordability of advanced treatments, including personalized medicine, are becoming increasingly important. PHC Group will leverage the assets and strengths we have developed over many years to contribute to healthcare that reduces cancer mortality rates and enhances treatment outcomes. In this domain, we aim to become an innovator in cancer diagnostics solutions, enabling more accurate and timely diagnoses, and an accelerator and enabler of the early adoption of advanced cancer treatments.
Social Background
Early detection and affordability of advanced treatments are becoming increasingly important due to:
- Increase in number of cancer cases
- Emergence of advanced treatments including personalized medicine
- Accompanying growth of disparities in healthcare
Our Assets and Strengths
- Products and technologies designed to drive efficiency and cost reduction in diagnostics and advanced treatments
- Strong relationships with customers and a global sales network spanning from research to clinical applications
- Manufacturing capabilities strategically located around the globe
Realizing Our Vision Through a Three-Stage Approach
Domain Vision
- Innovator in cancer diagnostics solutions, enabling more accurate and timely diagnoses
- Accelerator and enabler of the early adoption of advanced cancer treatments
Strengthening Business Foundations
We will enhance the efficiency and effectiveness of sales, manufacturing, and operations by transitioning from activities conducted on an individual business unit basis to an integrated domain-wide approach.
In sales, we will leverage our global sales network, spanning over 125 countries and regions, to provide one-stop domain solutions and drive business expansion. Additionally, we will optimize our sales structure and customer service to deliver enhanced value to our customers.
In manufacturing, we will strengthen our manufacturing excellence by optimizing manufacturing locations based on regional characteristics, such as access to key markets and compliance with local regulations. Furthermore, we will achieve advanced standardization by horizontally deploying best practices in production technology and quality management across the organization.
In operations, we will improve productivity through the standardization of indirect functions, including logistics and back-office operations.
Current State (Segmented)
Strengthening Business Foundations
- Sales: Optimization of solutions and systems
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- Provide one-stop solutions utilizing a shared domain sales network spanning over 125 countries and regions worldwide.
- Optimize sales structure and customer service.
- Manufacturing: Enhancement of manufacturing excellence
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- Optimize manufacturing locations based on regional characteristics such as access to key markets and compliance with local regulations.
- Achieve high-level standardization through the horizontal deployment of best practices in production technology and quality management across the organization.
- Operations: Standardization of indirect functions
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- Improve productivity through the standardization of indirect functions, including logistics and back-office operations.
Creating Domain Solutions
Going forward, we will focus mainly on efforts in regenerative medicine therapy in cancer. The global market for cell and gene therapy in particular, currently valued at JPY 2.7 trillion a year, is forecast to grow at an annual rate of 16%. In this promising growth area, we will leverage our core technologies and products to provide solutions that contribute to advancements in cancer diagnosis and treatment.
Domain Solutions for Cancer Diagnosis and Treatment
Improve efficiency and accuracy of diagnoses
- Leveraging our reagent development technology to provide reagents for biomarkers and patient monitoring to promote personalized medicine
- Providing next-generation digital pathology solutions that enhance cancer diagnostic efficiency through AI-powered technology
Improve quality, reduce cost and delivery time in cell medicine manufacturing
- Provide next-generation cell expansion system that establishes optimal cell culture environment utilizing sensors and real-time predictive analytics
- Offer new solutions that enhance the efficiency and cost-effectiveness of cell cultures in cell and gene therapy manufacturing
Expanding Solutions by Launching New Businesses
Building on our core technologies and core products, we will create new businesses by driving domain R&D and incubation, collaborating with external partners and leveraging M&A opportunities. First, to advance domain R&D and incubation, we will further enhance development of products and solutions that leverage our core technologies, including in new business areas. Next, through collaboration with external partners, we will accelerate the development of solutions for ongoing projects. They include a collaboration with the Centre for Commercialization of Regenerative Medicine (CCRM) in Canada in the area of regenerative medicine, and a collaboration with Wake Forest University in the U.S. in the area of digital pathology. Finally, by utilizing M&A, we will explore future acquisitions of complementary technologies, products, and sales channels to accelerate non-organic growth of our solutions.