News releaseMay 14
PHC Holdings announces Strategic Capital Alliance Agreement with Life Science Institute, Inc.
TOKYO, May 14, 2019 ―PHC Holdings Corporation (headquarters: Tokyo, Japan, hereafter PHCHD) today announced that it has signed a definitive agreement for a Strategic Capital Alliance with Life Science Institute, Inc. (headquarters: Tokyo, Japan, hereafter LSII), a subsidiary of Mitsubishi Chemical Holdings Corporation. Under the terms of this agreement a stock exchange will take place, whereby PHCHD will acquire all shares of LSI Medience Corporation (headquarters: Tokyo, Japan, hereafter LSIM), a wholly owned subsidiary of LSII, and LSII will receive 13.7% shares of PHCHD.
LSIM has developed businesses in Clinical Testing, Diagnostics Reagents and Instruments, and Drug Development Support Services, mainly operating in Japan. With an excellent reputation for its analytical capabilities and the quality of its related services among Japanese healthcare institutions, LSIM has established the third position in the domestic clinical testing industry. The company has approximately 3,500 employees and 60 sales offices throughout Japan.
Due to the growing aging population in Japan, the clinical testing market is expected to increase steadily, especially in the areas of oncology testing and lifestyle-related diseases. The genetic testing field is also forecasted to grow significantly following recent technological innovations.
PHCHD is a global healthcare company that offers value-added products and services across diabetes care, diagnostics, life sciences, and healthcare IT. Through the recently announced agreement to acquire the anatomical pathology business from Thermo Fisher Scientific, PHCHD will strengthen its diagnostics business mainly in oncology, and by acquiring all shares of LSIM that was announced today, PHCHD will enter high growth segments such as oncology and genetic testing and create a more comprehensive healthcare solutions business in Japan together with its healthcare IT business. By adding these new exciting businesses to its existing portfolio and building leading positions in its focus areas, PHCHD is aiming to achieve further growth for the future.
Michael Kloss, President and CEO of PHCHD, explained, “We are pleased to have signed the agreement with LSII to acquire all shares of LSIM. LSIM has gained a large market share and vast customer base in hospitals and clinics, and is a leader in the clinical testing market in Japan. We see significant potential for growth in all of the LSIM business areas and believe there is an opportunity to expand the customer base of both companies and further improve innovation by bringing together the strengths of the PHCHD Group and LSIM. By realizing these synergies, we will be able to further strengthen our healthcare solutions business in Japan and expand LSIM’s diagnostics reagents and instruments business overseas, supporting high quality clinical care for patients.”
Michael added, “I am also delighted to have LSII, a member of Mitsubishi Chemical Holdings Group, join our group as a new shareholder. By making the best of their networks and businesses, we will be able to pursue further business growth opportunities and enhance our competitive edge.”
PHCHD currently expects to close the stock exchange by the end of July of 2019, subject to customary closing conditions and the receipt of applicable regulatory approvals.
About PHC Holdings Corporation
Incorporated in 2014, PHC Holdings Corporation is a global healthcare company. Its subsidiaries include PHC Corporation and Ascensia Diabetes Care Holdings AG. Committed to its corporate mission, “We contribute to the wellbeing of society through our diligent efforts by creating new value propositions for all the people who wish for better health,” the company develops, manufactures, sells and services medical equipment and solutions across global diabetes care, diagnostics, life sciences and domestic healthcare solutions businesses. PHC Holdings Corporation group’s consolidated net sales in FY2017 was 192.6 billion yen with global distribution of products and services for more than 125 countries.
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About Life Science Institute, Inc.
Founded in 2014, Life Science Institute, Inc. promotes business in three healthcare domains: health and medical ICT business, next generation healthcare, and drug discovery solutions. By offering diverse solutions to people hoping for good health, such as a solution to meet patients’ unmet medical needs, it aims to realize KAITEKI society in which people can lead healthy and comfortable lives. The consolidated net sales of Life Science Institute, Inc. in FY2017 was 132.4 billion yen.
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About LSI Medience Corporation
Founded in 1975, LSI Medience Corporation is engaged in clinical testing, diagnostics reagents and instruments, and drug development support service as its three core businesses. By utilizing its power of analysis developed in various testing fields in its long history as a core competence and analytical abilities on test results as well, LSI Medience Corporation aims to create new solutions. Contributing to prevention and early detection of diseases and medical care, it also actively supports next-generation healthcare including personalized medicine. LSI Medience is one of the comprehensive leading comprehensive healthcare service companies in Japan with 89.4 billion yen net sales in FY2017 and approximately 3,500 employees (as of March 31, 2018).
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