KOKANDO CO.,LTD. (E00959) Stock Price

Kokan-do is a pharmaceutical manufacturer based in Toyama Prefecture, primarily engaged in the manufacture and sale of over-the-counter (OTC) medicines. The company carries forward Toyama's traditional medicine distribution practices while operating modern pharmaceutical business, focusing on household medicines such as cold remedies and gastrointestinal medications.

The company's revenue structure centers on product sales through domestic and international sales subsidiaries. Group companies including Toyama Megumi Pharmaceutical, Nihon Yakuzai, Kokan-do Korea, and Kokan-do Hong Kong handle sales of the company's products. Meanwhile, the company also procures products from these subsidiaries, building its revenue base through inter-group transactions.

The company's business consists of a single pharmaceutical segment, employing a business model that combines manufacturing, sales, and contract manufacturing. The company also undertakes manufacturing contracts from Nihon Yakuzai and other group entities, optimizing manufacturing functions within the group to achieve efficient business operations.

Kokan-do is pursuing a growth strategy centered on "Vision 2030," a long-term plan through 2030, to address the social challenge of extending healthy life expectancy. The company aims to achieve two corporate visions by 2030: first, to develop into an enterprise capable of delivering health-promoting products to remote and underserved areas; and second, to establish the top position in Japan's pharmaceutical mail-order business alongside its existing operations. The company has positioned the modernization of Toyama's traditional distribution pharmacy system and the construction of an accessible pharmaceutical supply infrastructure as core missions.

On the manufacturing front, the company is actively promoting internal business reforms compliant with pharmaceutical regulations and GMP standards to address increasingly stringent pharmaceutical manufacturing requirements. Through the advancement of its "Manufacturing Vision," the company is working to improve production capacity and establish manufacturing systems that balance quality with efficiency. This approach aims to further strengthen the reliability cultivated through its traditional distribution pharmacy business and reinforce competitive advantages in the modern pharmaceutical market.

The core of business expansion lies in strengthening the general pharmaceutical business in response to post-COVID market changes and full-scale entry into the mail-order business. The company positions the mail-order business as a new growth engine and is simultaneously advancing product development and sales infrastructure to enable rapid market entry in this sector. By integrating traditional distribution pharmacy expertise with modern mail-order systems, the company aims to build a business model that reaches a broad customer base.

Supporting these strategies, the company is prioritizing improvements to its human resource management systems. To achieve sustainable growth, it is reviewing talent development cycles and strengthening organizational capabilities to respond to changing business environments. The company is implementing initiatives to support its transformation from a traditional Toyama-based pharmaceutical enterprise to a modern company pursuing nationwide mail-order expansion.