Integrated Report 2023

PHC Group Business StrategyBusiness Strategy

Business Strategy

Koichiro Sato

Koichiro Sato

PHC Holdings Corporation
Senior Executive Vice President,
Representative Director,
Chief Operating Officer (COO)

In 2022, PHC Group announced our Mid-Term Plan, or Value Creation Plan. In the plan, we categorize each business into Foundation Areas and Growth Areas. The Foundation Areas are our main businesses with highly competitive core technologies and solid customer assets. These are the pillars of our earnings, and we will continue to focus on them.

On the other hand, many markets in the Foundation Areas are already mature. We recognize that securing greater market growth is an important priority for the growth of PHC Group. Therefore, we have defined Growth Areas as adjacent areas where we can leverage synergies among our businesses while capitalizing on our strengths in Foundation Areas. Specifically, we aim to provide value unique to PHC Group through the three Growth Areas: Personalized Testing and Diagnostics Solutions, Digital Health Solutions, and Advanced Therapy Development Solutions.

In Personalized Testing and Diagnostics Solutions, we offer a unique solution to people with diabetes in the United States and some countries in Europe, through expanding sales of an implantable CGM, which can be used continuously for up to 180 days. Until recently, the development of POCT had been separately led by PHC Corporation and LSI Medience. We integrated these businesses and combined PHC Group’s strengths in order to develop and sell products unique to the group.

For Digital Health Solutions, we will vigorously promote digital transformation in healthcare by leveraging our customer base with the top market share among clinics for medical-receipt computers and electronic medical record systems for clinics.

In Advanced Therapy Development Solutions, we will leverage PHC Group’s technological strengths to provide unique value, such as cell metabolism analyzers utilizing sensor technology developed alongside our BGM technology.

Additionally, in digital pathology and AI diagnostic support, we will provide new value to existing customers through collaborations with our partners.

These are the businesses that will drive PHC Group into the future. We will contribute to realizing Value-Based Healthcare while expanding our businesses with intensive investment.