Kawasumi Laboratories, Incorporated (E02310) Stock Price

Kawasumi Chemical Industries is a medical device manufacturer that produces and sells medical devices and pharmaceuticals related to blood, blood vessels, and extracorporeal circulation. The company's core products encompass a wide range of blood-processing medical devices, including blood bags, blood collection kits, infusion sets, artificial kidneys (dialysis equipment), and blood purification devices. These products play essential roles in medical settings and hold important positions particularly in dialysis treatment, blood transfusion, and vascular treatment fields.

The company's revenue structure is centered on supplying products to medical institutions both domestically and internationally. In Japan, products are distributed to hospitals and medical facilities through sales agents, while overseas expansion is pursued through subsidiaries and local partners. Specifically, Kawasumi Laboratories America, a subsidiary, handles direct sales in the United States, Central and South America, and Canada regions, while the parent company conducts direct sales in Europe.

The company's business is divided into two main segments: "Blood and Vascular-Related" and "Extracorporeal Circulation-Related." The blood and vascular segment manufactures blood bags, component collection kits, and stent grafts, while the extracorporeal circulation segment produces artificial kidneys, blood circuits, and artificial heart-lung circuits. The production system comprises three domestic factories (Mie, Saiki, and Nozu) and a Thai subsidiary, establishing an international division of labor that balances cost efficiency with quality control.

Kawasumi Chemical Industries has set targets of 220 billion yen in sales and 10 billion yen in operating profit for the fiscal year ending March 2021, the final year of its medium-term management plan. Under its long-term vision of becoming "a company with distinctive originality on the global stage," the company is pursuing a dual strategy combining strengthened profitability through structural reform and growth in new business areas. While withdrawing from unprofitable operations, the company is concentrating management resources in high-growth areas such as endovascular treatment and gastroenterology to achieve fundamental improvements in corporate performance.

The company has designated minimally invasive treatment fields, including endovascular and endoscopic procedures, as priority investment areas and is establishing revenue foundations through new product development. Following the manufacturing and sales approval of the "Kawasumi Duckbill Biliary Stent" in 2018, the company obtained approval for the "Kawasumi Bellows Colonic Stent" in 2019. These products were developed using the company's proprietary technology and are being introduced to the market as differentiated products with features unavailable in conventional products. Additionally, through a capital and business alliance with Sumitomo Bakelite, the company is pursuing polymer technology applications and joint development of next-generation medical devices.

In new market development, the company is actively strengthening sales capabilities domestically and internationally. Domestically, it is building specialized information provision systems in growth fields. Internationally, it is planning expanded sales of stent grafts in European markets including Italy and Germany. Organizationally, the company has restructured by business segment, establishing a system capable of executing sales strategies from planning through implementation. Sales operations have been consolidated to three bases in Tokyo, Osaka, and Fukuoka, enabling efficient sales activities.

In technology innovation efforts, the company is constructing a new research and development facility in Kawasaki, Kanagawa Prefecture at Kings Skyfront, with operations scheduled to begin in October 2021. This new facility will consolidate development operations and headquarters functions to shorten the period from product development to market launch. In research and development, the company is focusing on vascular surgery and gastroenterology as core areas, concentrating efforts on developing advanced medical devices that minimize patient burden and creating products that address evolving medical needs.