Japanese conglomerate Fujifilm Holdings (TYO: 4901), best known for its photography and imaging operations, also has a sizeable business in healthcare, which it is hoping to expand.
The company has drawn up a new medium-term management plan, VISION2019, covering a three year period from the fiscal year ending March 2018 (FY2018/3) to the fiscal year ending March 2020 (FY2020/3) which includes ambitions in the healthcare sector.
Through a series of structural reforms, Fujifilm says it has been able to establish a solid management base that generates profits. By efficiently utilizing those profits, the company has built a diversified and extensive business portfolio. The VISION2019 aims to further enhance this portfolio by reinforcing each of the business segments and thus achieve sustainable growth.
For its healthcare business sector, Fujifilm is aiming for revenues of 500 billion yen ($4.59 billion), which compares with 423.5 billion yen in the 2016/7 fiscal year, with 40 billion yen in operating income and 8% in operating income ratio. For the group as a whole, it targets revenues of 2,600 billion yen. Projects outlined in its various healthcare groups were as follows:
(1) Pharmaceuticals and Bio Contract Development & Manufacturing Organization (CDMO)
In bio-pharmaceutical CDMO operations, it will expand production capacity through capital investments and technological development, and boost profitability through scale merit to accelerate business growth, so as to achieve a two-digit sales growth per annum, outstripping the market growth.
In innovative drug development, it will target disease areas with high un-met medical needs, such as cancer and Alzheimer’s disease and promote efficient R&D. It will further promote the development of candidate drugs in the pipeline, including T-817MA for the Alzheimer’s disease.
It will also accelerate initiatives for commercial application of formulation technology that makes use of its proprietary technologies such as micro-needles and liposomes.
(2) Regenerative Medicine
It will accelerate business growth by expanding the line-up of iPSC-derived differentiation cells in the drug discovery support business, and promoting the sales of autologous cultured epidermis / cartilage in the cell therapy business. In cutting-edge regenerative medicine products using iPSC (induced pluripotent stem cells), it will accelerate R&D for the areas of eye diseases, heart diseases, neurological disorders and cancer.
It will broaden the contract cell culture business and deploy the culture medium business globally.
(3) Medical Systems
It will provide extensive solutions to customers with its far-reaching product line-up unique to Fujifilm, covering X-ray diagnostic imaging systems, endoscopes, ultrasound and IVD systems, advanced medical IT systems of strong competitive edge, and the comprehensive capabilities based on these technologies. It will offer products and services that meet local needs of emerging economies’ markets to achieve the sales growth of 7% per annum. It will also promote the medical ICT business that makes maximum use of medical imaging data.
(4) Life Science
It will reinforce the ASTALIFT brand with the introduction of the top-of-the-range “ASTALIFT IN-FOCUS” series to attract new customers and increase per-customer spending among existing customers.
It will also target the markets of growth potential for lifestyle disease prevention and healthy aging skincare for business expansion with the introduction of “foods with function claims”- foods submitted to the Secretary-General of the Consumer Affairs Agency as products whose labels bear function claims based on scientific evidence, under the responsibility of food business operators.