Ina Research Inc. (E20922) Stock Price

Inari Research is a company whose main business is contract testing services that support pharmaceutical safety evaluations. The company conducts non-clinical testing on behalf of pharmaceutical development companies, using laboratory animals and cells to confirm the toxicity and efficacy of new drug candidates. As a facility that complies with GLP standards established by Ministry of Health, Labour and Welfare regulations, the company provides test data necessary for new drug approval applications.

The company's primary revenue comes from contract testing services for pharmaceutical development companies, food-related companies, and research institutions such as universities. In addition to safety tests including single-dose and repeated-dose toxicity tests, reproductive and developmental toxicity tests, and genotoxicity tests, the company also conducts pharmacology efficacy tests and pharmacokinetic studies. Testing periods range from several months to long-term projects, and the company has established a system to provide consistent support through final test report submission.

The company operates two business segments: "Contract Testing" and "Environment." In the environment business, the company leverages air quality management technology developed through years of operating laboratory animal facilities to design and sell deodorization and sterilization equipment to pharmaceutical companies and universities. For the food industry, the company provides micro-acidic electrolyzed water generation equipment effective for infection control, and also sells laboratory animal equipment to meet facility upgrade needs at research institutions.

Inari Research is advancing a growth strategy centered on overseas market development and support for domestic drug discovery ventures under its medium-term management plan, with fiscal year 2024 as the final year. The company has announced performance targets for the fiscal year ending March 2023 of 4.328 billion yen in revenue, 350 million yen in operating profit, and 298 million yen in net income, aiming for balanced business growth both domestically and internationally. While maintaining relationships with existing customers, the company is working to build a comprehensive service network by strengthening its presence in global markets and reinforcing partnerships with business partners.

The company's priority investment area is the advancement of gene therapy drug testing. Centered on the Gene and Cell Therapy Research and Development Center, established through joint research with Shinshu University, the company aims to establish an industry-leading position in the field of gene therapy drugs and treatments. Additional investment from the National Institute of Biomedical Innovation, Health and Nutrition is expected to enhance the company's capacity to handle gene variable samples and accelerate the accumulation of expertise in this field. In addition to the SEND business, where the company has already established competitive advantages, the company is also focusing on creating new business opportunities in the digital transformation sector.

In new market development, the SEND contract service and overseas distributor business are showing steady revenue growth, and the company plans to develop these as its third and fourth pillar businesses following the environmental business. Against the backdrop of expanding drug discovery in Asia, the company is actively pursuing contract testing demand in overseas markets. In the environmental business, the company is also pursuing revenue expansion by introducing new products and implementing cost reduction measures to meet the renewal needs of research facilities.

Regarding technological innovation, the company has positioned productivity improvement through automation and labor-saving measures as a key priority. In labor-intensive non-clinical testing operations, the company is identifying tasks that can be automated or systematized and promoting efficiency through active capital investment, aiming to achieve both stable quality assurance and improved employee satisfaction. In response to fluid international conditions, the company is also working to secure stable supplies of energy and testing materials by securing alternative energy sources independently and establishing stable procurement routes for large animals.