PHC GROUP Integrated Report

PHC Group Business StrategyDiabetes Management

As a global leader in diabetes technology,
we have been helping people with diabetes improve
their health and quality of life for over 80 years.

Robert Schumm

Robert Schumm

Corporate Officer, PHC Holdings Corporation
President, Ascensia Diabetes Care Holdings AG

Message

Over 500 million people globally live with diabetes*1, and this figure is predicted to rise to over 600 million by 2030. At Ascensia, we are committed to improving the health and quality of life for people with diabetes.
Our sole focus on diabetes means that we deeply understand people’s needs, enabling us to develop, manufacture, and deliver innovative products that help make life with diabetes more manageable. From our high-precision glucose monitoring systems to our digital diabetes management solutions, we empower people to better manage their diabetes and help make their daily lives more comfortable.

Overview

In our diabetes management business, we offer high-quality blood glucose monitoring (BGM) systems, continuous glucose monitoring (CGM) systems, and digital diabetes management solutions that meet the diverse needs of people living with diabetes.
Our BGM products are developed and manufactured by PHC Corporation, and brought to people across the globe by Ascensia Diabetes Care, a PHC Group company. These BGM systems collect a small blood drop from a fingertip and measure the blood glucose level to give people with diabetes the information they need to make treatment or lifestyle decisions. Since launching the industry’s first personal BGM in 1981, we have continued to improve our products through our innovation and manufacturing excellence, and we are proud to offer the highest level of accuracy*3 in the industry, at a competitive cost.
The CGM systems we provide are developed and manufactured by our business partner Senseonics, and brought to people with diabetes by Ascensia. As the exclusive global distributor of the Eversense® E3 Continuous Glucose Monitoring System as well as any future Eversense® products, Ascensia is able to leverage its commercial capabilities and network in BGM to offer a highly-differentiated CGM option.
The Eversense® CGM System is the industry’s first and only fully implantable CGM system, and allows continuous measurement of glucose levels, with data automatically sent every five minutes to a mobile app on the user’s smartphone. Unlike any other CGM on the market, the Eversense® sensor can be used continuously for up to six months. Sensors of other available CGM systems are short-term and need to be replaced every seven to fourteen days.
This business and its people have been committed to supporting people with diabetes for more than 80 years. Looking ahead, we will continue to simplify and improve lives through our advanced diabetes management solutions.

Strengths

  • Global business operations and expertise
    Our products are sold in more than 100 countries and regions, and are used by an estimated 10 million people. We respond to customer needs around the world through our experienced global sales network.
  • High-quality, high-precision, cost-competitive products
    Our BGM products are manufactured in facilities using fully automated equipment. Optimized product technology and production processes enable us to achieve the industry’s highest standards of precision and reliability, whilst maintaining low-cost manufacturing.
  • Innovative products/advanced technology
    We support more effective self-management of diabetes through innovative products and digital solutions. The Eversense® E3 CGM System provides users with unparalleled reliability and flexibility and up to six months of real-time glucose readings with two sensor changes per year, a removable*2 transmitter and on-body vibratory alerts, including for high and low glucose values. Our BGM products are considered among the most accurate available, enabling people to identify blood glucose fluctuations with precision, and empowering them to make confident treatment and lifestyle decisions.

*1 IDF https://diabetesatlas.org/ *2 There is no glucose data generated when the transmitter is removed *3 Klaff LJ, Brazg R, Hughes K, Tideman AM, Schachner HC, Stenger P, Pardo S, Dunne N, Parkes JL. Accuracy evaluation of contour next compared with five blood glucose monitoring systems across a wide range of blood glucose concentrations occurring in a clinical research setting. Diabetes Technol Ther. 2015 Jan;17(1):8-15. doi: 10.1089/dia.2014.0069. PMID: 25260047.

FY2022 Snapshot

Revenue: JPY111.8billion*

*Includes revenue of PHC IVD

Main Customers

  • People with diabetes
  • Dispensing pharmacies
  • Hospitals/clinics

Main Products/Services

Our highly accurate glucose monitoring systems*3, designed for ease of use by people with diabetes, are used by an estimated 10 million people around the world. Through our integrated diabetes management technology platform, we provide solutions that help people use data to effectively manage diabetes.

  • Blood glucose monitoring (BGM) systems

    People with diabetes can easily and accurately measure their blood glucose levels at home. Systems allow users to sync data with smartphones and other devices.

    Blood glucose monitoring (BGM) systems
  • Continuous glucose monitoring (CGM) systems

    Continuously measures glucose levels using the world's first fully implantable subcutaneous sensor that can be worn for up to six months. Able to notify users of rises and falls in glucose levels, with a removable*2 transmitter and the ability to provide unique on-body vibratory alerts.

    Continuous glucose monitoring (CGM) systems
  • Digital diabetes management solutions

    Integrated diabetes management solutions that support more effective self-management and data sharing.

    Digital diabetes management solutions

Diabetes Management

Diabetes Management

The glucose monitoring market for diabetes is expanding, but a shift from Blood Glucose Monitoring (BGM) to Continuous Glucose Monitoring (CGM) is in progress, particularly in Europe and the United States. The BGM segment is expected to shrink 3% by 2025, while CGM is expected to grow substantially.

shift from Blood Glucose Monitoring (BGM) to Continuous Glucose Monitoring (CGM)

Source: In-house analysis

While continuing to enhance focused segments within BGM, we are investing heavily in Growth Areas centered on CGM. Specifically, for BGM, we seek to maintain profitability by increasing sales in growth segments such as the over-the-counter drug sales channel in the United States, and by introducing low-priced products mainly in emerging markets, while expanding our market share in mature markets.
We have defined CGM as one of our Growth Areas and are focused on strengthening this business. We will accelerate growth by increasing sales of the Senseonics Eversense® E3 CGM System, which provides users with unparalleled reliability and flexibility with a unique sensor providing up to six months of real-time glucose readings, the need for only two sensor changes per year, and a removable*2 transmitter with on-body vibratory alerts.
The Eversense® CGM System, which we exclusively distribute, is the industry’s first and only fully implantable CGM system, and allows continuous measurement of glucose levels, with data automatically sent every five minutes to a mobile app on the user’s smartphone. Unlike any other CGM on the market, the Eversense® E3 sensor can be used continuously for up to six months. Sensors of other available CGM systems are short-term and need to be replaced every seven to fourteen days. In addition, our partner Senseonics announced on January 2, 2024 that it would soon be seeking approval for a 365-day Eversense® system*.

Potential needs for implantable CGM Eversense®

Potential needs for implantable CGM Eversense

Eversense® E3 subcutaneous implantable sensor and removable transmitter

Eversens E3 subcutaneous implantable sensor and removable transmitter

*Senseonics Holdings, Inc. Announces Business Updates – Senseonics

https://www.senseonics.com/investor-relations/news-releases/2024/01-02-2024-210523872