In the Diagnostics & Life Sciences domain, we support the advancement and efficiency of diagnostics and life sciences research. We develop, manufacture, sell, and service products including anatomical pathology laboratory solutions, diagnostic reagents and devices, research and medical support equipment. By providing highly accurate and comprehensive solutions that enable precise and rapid diagnosis of diseases such as cancer, as well as products that support advanced life sciences research, we contribute to improving the quality of healthcare.
Fiscal Year 2025 Results
Despite solid performance in Europe and favorable FX, revenue declined mainly due to lower diagnostic reagent sales and continued weakness in equipment demand in the U.S.—despite signs of recovery.
Operating profit increased significantly in Q4, driven by the effects of price revisions and manufacturing footprint optimization. However, full-year operating profit declined substantially YoY, largely due to lower revenue, tariffs, and corporate function transfer.
- Pricing revision
- Cost reduction initiatives (e.g., supply chain optimization)
- Approx. JPY 500 M in other income from the re-classification of affiliate
- Impact of decreased revenue
- Inventory reduction impact
- Tariff impact of approx. JPY 1.0B
- JPY 1.2B impact from corporate function transfer
- One-time income of JPY 630M recorded in FY24
Operating profit margin: 3.0%
Domain Strategy
Nobuaki Nakamura
Executive Corporate Officer,
Head of Diagnostics & Life
Sciences Domain,
PHC Holdings Corporation
President, Representative
Director,
PHC Corporation
Concentration of Management Resources
on Growth and New Business Development
Operating profit margin improvement:
7.1% (Fiscal Years 2024-2027)
Bringing Together the Comprehensive Strengths of the Domain
to Become a Driving Force of Group Growth
In fiscal year 2025, the Diagnostics & Life Sciences domain experienced a difficult year in terms of business performance, impacted by tariffs in the United States and a slowdown in demand for laboratory equipment. On the other hand, business in Europe performed well, and signs of demand recovery began to emerge in the U.S. in the second half of the year, including continuing acquisition of large-scale orders in the pharmaceutical and biotech sectors throughout the fiscal year. Under these circumstances, we implemented many of the initiatives set forth in the Value Creation Plan 2027. Regarding sales, we integrated sales and customer support of the three businesses within this domain in Japan and restructured organizations to expand sales even further. We also launched numerous collaborative initiatives in Europe and China. In terms of manufacturing, we implemented measures to strengthen cost competitiveness by transferring production in the pathology business from our UK facility to our Indonesia facility. We also expanded use of the pathology facility in China in response to China’s policies that prioritize domestic production, thereby steadily advancing optimization across the domain. In the cell and gene therapy (CGT) field, following the launch of the LiCellMo™ live cell metabolic analyzer in fiscal year 2024, we released the LiCellGrow™ cell expansion system in some geographies in fiscal year 2025. We also released an improved version of the PATHFAST™ portable immunoassay analyzer as well as new models of ultra-low temperature freezers and CO2 incubators.
In fiscal year 2026, we will bring together the comprehensive strengths of this domain to accelerate further growth. First, we established the Life Sciences Business Unit by integrating the Biomedical and IVD Business Units. Through this integration, we will advance optimization and productivity improvements in the sales, manufacturing, and operational functions, strengthening business foundations even further. In addition to continuing domain optimization in both sales and manufacturing, we are also collaborating with the Core Technology Laboratory, which drives technology development throughout the entire Group, to advance the development of new solutions that leverage our core technologies.
Under the Value Creation Plan 2027, this domain is positioned as a driving force of Group growth. We seek to become an innovator in cancer diagnostics that enables more accurate, efficient, and simple diagnosis, and an accelerator of the development of advanced cancer treatments. To achieve this vision, we are steadily strengthening business foundations and advancing R&D as a unified domain. We aim to develop solutions that support faster diagnosis and personalized medicine for cancer, and technology that supports new modalities such as cell and gene therapy, creating new value and contributing to the advancement of healthcare worldwide.
Market Environment & Outlook
Consumables and Pathology Testing Equipment Market Trends
Source: In-house research
Market Environment
- The market for pathology testing solutions is expanding due to the increasing number of cancer cases globally.
- More laboratories are adopting digital pathology to automate workflows, enable remote collaboration, use AI-assisted diagnostics, and improve efficiency.
- Regulatory approvals and government-funded programs are helping to speed up the use of high-throughput digital pathology solutions in the United States, Europe, and China.
Outlook
- The market is expected to continue expanding due to the increasing number of cancer cases and the growing demand for complex pathology testing.
- In addition, due to the demand for workflow efficiency improvements associated with the above, an overall pre-analytical market growth of 4% is expected for equipment and reagents.
- Demand for workflow optimization and high-throughput scanning solutions is increasing as pathology laboratories face both staffing shortages and growing testing volumes.
- Price competition is intensifying due to the rise of low-cost manufacturers.
Key Products & Services
- Pathology Consumables
- Our business has 85 years of history supplying one of the broadest core consumable portfolios focused on quality and precision for the clinical laboratory.
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- Pathology Equipment
- We support every step in the pathology workflow with a comprehensive portfolio of high quality, precision instruments used in cancer diagnostics around the world.
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- Digital Pathology
- With a comprehensive offering of digital pathology solutions for clinical and research purposes, we lead the way in the modern-day pathology lab, which requires efficiency, accuracy, and high throughput.
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Strategy & Target
Strategy
- Focus on tissue processing, digital pathology, and eco-friendly laser marking equipment as growth areas
- Improve quality and strengthen cost competitiveness
- Improve operational efficiency and manufacturing capabilities
- Advance environmentally responsible and sustainable product development
Target (Fiscal Years 2024-2027)
Revenue CAGR: 4.8%
Continue to exceed pre-analytical market growth rate, where we remain the global leader, and begin share expansion in strategic growth areas.
Business Strategy
Steven Lynum
Corporate Officer,
PHC Holdings Corporation
President, Epredia Holdings
Ltd.
Epredia is a global leader in precision cancer diagnostics, offering integrated solutions for tissue processing, staining, slide printing, consumables, digital pathology, and AI-powered image management. We are expanding our digital pathology offerings to meet the growing need for efficient and accurate cancer diagnostics.
The increasing adoption of digital pathology is transforming laboratory operations by enabling high-resolution whole-slide imaging, remote pathology review, workflow standardization, and AI-assisted analysis. Epredia’s E1000 Dx Digital Pathology Solution supports laboratories with high-throughput scanning capabilities of up to 1,500 slides per day, advanced quality control functionality, and interoperability with existing laboratory systems.
Epredia continues to invest in digital pathology solutions including hardware and software, automation, and AI partnerships to strengthen laboratory workflow efficiency and diagnostic confidence. Epredia has strategic collaborations with companies such as 3DHISTECH and Mindpeak that will permit expansion of capabilities in digital imaging, including AI-powered image recognition.
The company is also focused on operational excellence through automation and sample chain of custody, environmentally responsible technologies, and recurring consumables. By combining proprietary technologies with a global commercial network, Epredia aims to strengthen its position as a comprehensive pathology workflow solutions provider and support sustainable long-term growth.
Our Precision Technologies
- Epredia E1000 Dx Digital Pathology Solution: Powering the Future of Digital Pathology
-
The Epredia E1000 Dx Digital Pathology Solution showcases Epredia’s expertise in advanced imaging and digital workflow technologies. The platform enables pathology laboratories to convert traditional glass slides into high-quality digital images, helping improve operational efficiency, information sharing, and diagnostic workflows. Epredia’s continued commitment to enhancements in automation, image quality, and AI readiness has earned significant industry recognition. Most notably, the E1000 Dx received the 2026 MedTech Breakthrough Award for Best New Diagnostic Technology Solution and top performance recognition in the EMPAIA International Scanner Benchmark, which evaluates digital pathology scanners for image quality, speed, and AI interoperability.
A key component of the E1000 Dx is Epredia’s Image Management System (IMS), which provides secure storage, organization, and sharing of digital pathology images across laboratories and healthcare networks. Together, the E1000 Dx and IMS create an integrated digital pathology workflow that allows pathologists to access cases more efficiently, facilitate diagnostic support remotely, and manage growing image volumes with ease. For customers, this translates into improved productivity, greater workflow flexibility, and a future-ready platform that supports the growing adoption of AI-enabled diagnostics and digital healthcare solutions.
Life Sciences Business Unit
(formerly the Biomedical Business Unit)*
- * Effective April 1, 2026, the Biomedical and IVD Business Units were integrated into a single business unit called the Life Sciences Business Unit. For details, see the PHC Group Organizational Chart.
Market Environment & Outlook
Life Sciences Equipment Market Trends
Source: In-house research
Market Environment
- Despite ongoing economic slowdowns and restrained investment in some regions, signs of recovery are beginning to emerge in key markets.
- Among pharmaceutical companies and CDMOs, demand to replace equipment with energy-efficient models and requests for business partners to address ESG requirements are becoming more evident.
Outlook
- Focused investment continues in advanced therapy technology development and manufacturing processes, including CGT, and market growth is expected to accelerate toward 2027.
- With the expansion of life science research markets using cells, demand for ultra-low temperature freezers, CO2 incubators, and other laboratory products is expected to grow steadily over the medium to long term.
Key Products & Services
- Ultra-Low Temperature Freezers
- Research support through temperature stability, energy saving performance, and ease of use essential for specimen storage.
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Source: In-house research
- CO2 Incubators
- Improved cell culture efficiency and reproducibility through proprietary humidification control and contamination prevention functions.
-
Source: In-house research
- Cell Expansion System
- Culture medium is automatically exchanged based on data from In-Line sensors that monitor metabolic changes in cells. By continuously optimizing the cell-culture environment, the system contributes to improved cell quality, greater efficiency, and lower costs by reducing manufacturing losses.
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Strategy & Target
Strategy
- Expand the product lineup and drive sales growth through differentiated technologies, including energy-efficient and environmentally conscious products, and value creation through IoT
- Develop and commercialize CGT products, including the LiCellMo™ Live Cell Metabolic Analyzer and LiCellGrow™ Cell Expansion System
Target (Fiscal Years 2024-2027)
Revenue CAGR: 5.6%
Business Strategy
Chikara Takauo
Corporate Officer,
PHC Holdings Corporation
Representative Director &
Senior Executive Director,
PHC Corporation
As the core products of the Life Sciences Business, ultra-low temperature freezers and CO2 incubators play a fundamental role in supporting research and development in the life sciences market. Supported by recovering capital investment across regions, we will continue to offer researchers laboratory solutions with the stable quality and performance they need to conduct research with confidence.
The cell and gene therapy (CGT) field, which offers the prospect of curative treatments, is expected to grow rapidly as pharmaceutical companies and CDMOs expand manufacturing investment. We aim to increase market adoption of metabolic analyzers and cell expansion systems that leverage our core technologies and, through collaboration with partner companies, establish our position as a solution provider that contributes to solving challenges in CGT manufacturing processes.
In addition, under the Value Creation Plan 2027, we have designated Diagnostics & Life Sciences as our priority domain. We will contribute to an environment in which more people can access advanced therapies while both strengthening our earnings base and investing in growth.
Building on stable growth in our existing businesses, we will lead the further development of the life sciences market by combining the expansion of solutions in new areas with the provision of added value through IoT technologies.
Our Precision Technologies
- Insights From the Head of Development: Precision Core Technologies Built Over Decades
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Since joining PHC Group, I have been involved in product and technology development in the Biomedical Business Unit, now part of the Life Sciences Business Unit. From that experience, I have seen firsthand how our precision technologies have evolved.
The Biomedical Business Unit entered Japan’s life science equipment market in 1966 as a division of a consumer electronics manufacturer. The market was then small and dominated by manufacturers outside Japan. As the domestic market grew, however, the business steadily expanded in Japan and then globally, and today we hold the No. 1 share in Japan and the No. 2 share* worldwide.
At first, our product development drew on existing safety-design technologies. Yet the distinctive characteristics of life science equipment presented numerous challenges, which we tackled through trial and error. Working closely with suppliers, we improved components and enhanced quality, while establishing manufacturing processes and inspection systems. Through this work, we built an end-to-end technology platform for laboratory equipment, from product development to commercialization. We also continued to meet the exacting requirements of highly specialized customers with rigorous evaluation standards, including researchers in the pharmaceutical and biotechnology fields. This process refined performance attributes such as accuracy, reproducibility, and reliability.
Our dedication to continuous improvement extended beyond product development and design to production engineering and manufacturing processes, which strengthened quality assurance across the business even more.
Alongside deepening laboratory freezer and incubator technologies, we have maintained a strong spirit of taking on new fields, broadening our capabilities to create new value. By advancing those existing technologies while also pursuing new ones like live cell metabolic analyzers and cell expansion systems, we remain agile in responding to environmental change and evolving customer needs.
These accumulated precision technologies enable stable data acquisition and high reproducibility in research environments, contributing to the reliability of our customers' research outcomes. Going forward, we will combine the expertise accumulated over decades to continue advancing technologies that support the future of life sciences.
- * Source: In-house research
Susumu Kobayashi
General Manager LS Solutions Development Department,
PHC Corporation
Life Sciences Business Unit
(formerly the IVD Business Unit)*
- * Effective April 1, 2026, the Biomedical and IVD Business Units were integrated into a single business unit called the Life Sciences Business Unit. For details, see the PHC Group Organizational Chart.
Market Environment & Outlook
In Vitro Diagnostics (IVD) Market Trends
Source: In-house research
Market Environment
- IVD
The market is expanding as the prevalence and incidence of chronic and infectious diseases continue to rise.
- Injectors
The market is growing due to the increased adoption of biopharmaceuticals.
Outlook
- IVD
Further market expansion is expected, especially in developing countries, as these solutions contribute to early disease detection even in environments with limited medical resources.
- Injectors
The market for motorized digital injectors is expected to grow as the use of self-administered injectable drugs continues to increase.
Key Products & Services
- Diagnostic Reagents
- Extensive development of in vitro diagnostic reagents for measuring blood components, including those used in blood coagulation and fibrinolysis testing.
- Diagnostic Equipment
- The portable immunoassay analyzer delivers highly sensitive and rapid measurements. Additionally, systems like the fully automated blood coagulation testing system are designed to meet the needs of large medical institutions.
Strategy & Target
Strategy
- Strengthen and accelerate the reagent business
- Leverage our strengths in coagulation and fibrinolysis to expand our presence in the cardiovascular field, particularly in thromboembolism, a high-risk complication associated with cancer and other diseases
Target (Fiscal Years 2024-2027)
Revenue CAGR: 5.9%
Business Strategy
Chikara Takauo
Corporate Officer,
PHC Holdings Corporation
Representative Director &
Senior Executive Director,
PHC Corporation
The In Vitro Diagnostics Division is committed to enhancing the reagent business to accelerate growth.
PATHFAST™, one of our flagship portable immunoassay analyzers, recently marked its 20th anniversary on the market. It has supported rapid testing at medical institutions in Japan and approximately 50 countries and regions across North America, Europe, Asia, the Middle East, and Latin America. An updated model was launched in Japan in March 2026. The redesigned PATHFAST™ features a larger operating screen and an intuitive graphical user interface (GUI), as well as a wide-access door for smooth reagent loading and removal. It also includes a built-in barcode reader and a status indicator light, further improving ease of use. Going forward, we aim to launch the updated PATHFAST™ in the United States, Europe, and other Asian markets.
PHC Group will work to create new value based on our core products, including reagent development technology, biosensing technology, reagents, and point-of-care testing devices.
Our Precision Technologies
- Precision Technology Behind the Development of an sCLEC-2 Measurement Reagent
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The IVD Business Unit developed reagents for measuring soluble C-type lectin-like receptor 2 (sCLEC-2), a marker of platelet activation, by leveraging the precision technology platform cultivated in the coagulation and fibrinolysis fields.
The precision technologies in our coagulation and fibrinolysis reagents can accurately reproduce blood reactions occurring in the body within a test system, reliably capturing only the targeted substances and minimizing variability in results. For example, in the case of D-dimer
*, highly specific antibodies are used to detect only the target substance, while for PT
* and APTT
*, the reagent composition is adjusted to achieve a stable coagulation reaction. As a result, we achieve highly reproducible measurement performance, enabling reliable testing in clinical settings.
These reagents were jointly developed with the University of Yamanashi and were commercialized as dedicated reagents for the STACIA
® fully automated clinical testing system. As a biomarker that reflects platelet activation, sCLEC-2 is expected to be used as a biomarker for early detection and risk evaluation of arterial thrombotic events such as cerebral and myocardial infarction. A key feature of the reagents is that they overcome the blood collection and sample handling constraints associated with conventional markers, enabling simple measurement using standard citrated plasma. They were launched in Japan in March 2025 as reagents for certified laboratory testing, and we are working to obtain approval for their use as in vitro diagnostic products while we accumulate clinical data. By expanding applications beyond arterial thrombosis into a broader range of disease conditions, we seek to further grow our business in the cardiovascular field related to thromboembolism.
- * Types of blood coagulation tests
Yuichi Shintani
General Manager,
Technology Development
Department, Diagnostic Reagents Business Group,
Life Sciences Business Unit, PHC Corporation