MEDICAL&BIOLOGICAL LABORATORIES CO., LTD. (E00978) Stock Price

Medical & Biological Laboratories Co., Ltd. is a biotechnology company that develops, manufactures, and sells clinical diagnostic reagents and basic research reagents for medical institutions and research organizations. The company's main products include immunological and serological diagnostic reagents used in hospital diagnostics, genetic testing reagents, and basic research reagents required for experiments at universities and research institutes. It provides a wide range of specialized reagents that support both medical diagnostics and scientific research.

The company's primary customers are medical institutions, diagnostic centers, universities, and research organizations. It sells directly to these facilities and also supplies materials to diagnostic equipment manufacturers. The revenue structure is centered on the reagent business, with clinical diagnostic reagents and research reagent sales forming a stable revenue base. Sales of related diagnostic equipment and instruments also contribute to revenues.

The company operates two business segments: reagent business and investment business. The reagent business is further divided into clinical diagnostic reagents and LSTR (Life Science Tools & Reagents) business. The clinical diagnostic reagents business offers diagnostic reagents for autoimmune diseases, cancer diagnosis, and infectious disease testing. The LSTR business provides advanced research tools including antibodies for basic research, fluorescent protein-related reagents, and tetramer reagents specialized for immunological research. Through its investment business, the company invests in and nurtures biotech venture companies via subsidiaries, supporting the discovery of new technologies and their commercialization.

Medical Biology Institute is advancing its medium-term management strategy "Next Stage 2020-2024," which aims to strengthen its competitive position in global markets through innovative diagnostic technologies. The company has set clear numerical targets for fiscal year 2024: revenue of 13 billion yen, operating profit margin of 20%, and return on equity exceeding 13%. In its previous medium-term plan, the company significantly exceeded its target operating profit margin of 10%, achieving 14.5% in the fourth year. The core of this growth strategy is maximizing corporate value through technological innovation in advanced diagnostics and expansion of overseas operations.

The company's priority investment areas are two pillars: immunological and serological diagnostic reagents in autoimmune disease and cancer fields, and genetic testing reagents. Notably, the company has been fully developing companion diagnostic drug contract development services since 2019 to address advances in personalized medicine, building new revenue streams through partnerships with pharmaceutical companies. The company is also focusing on biomarker development that covers disease early diagnosis through post-treatment monitoring, transitioning from conventional diagnostic products to high-value-added products directly linked to treatment decisions.

Strengthening China operations is the top priority in overseas market development. Through its Chinese subsidiaries Beijing Bole Biotech and Enbile (Hangzhou) Biotech, the company is building an integrated system spanning diagnostic reagent material supply to local manufacturing and regulatory approval. Through localization strategies, the company aims to reduce manufacturing costs and establish itself as a diagnostic reagent manufacturer capable of rapidly responding to China market needs. Additionally, the company is advancing efficient market development and customer acquisition through digital marketing that leverages the characteristics of China's vast market.

In technological innovation, the company is actively moving away from self-reliance and promoting strategic partnerships with academia and companies in different industries. Through participation in joint research with JSR and Keio University School of Medicine Chemical Innovation Center, and collaboration with U.S. equity method affiliates, the company is targeting expanded global market share in MHC tetramer technology. The company is also focusing on building research and development systems capable of responding to social needs—as demonstrated by rapid development of COVID-19 diagnostic tests—and creating new business models utilizing digital technology.