In the Healthcare Solutions domain, we support the healthcare field by offering clinical testing services, developing and distributing healthcare IT solutions, and providing drug development support services. For medical institutions, we offer clinical testing services and healthcare IT solutions, including medical-receipt computers and electronic medical record systems. For pharmaceutical companies, we deliver research and development services, including non-clinical testing and clinical trial support. By supporting healthcare professionals and patients, we contribute to the advancement of medicine and drug discovery across Japan.
Fiscal Year 2025 Results
Revenue increased year on year, driven by growth in genetic testing in the Clinical Testing business and higher sales of EMR/medical-receipt systems in the Healthcare IT Solutions business, which more than offset lower e-prescription software sales and reduced revenue in the CRO business.
Despite revenue growth and cost reductions, operating profit decreased due to changes in the sales mix, higher procurement and amortization costs, lower CRO revenue, and restructuring costs.
- Impact of increased revenue
- Effect of cost reductions
- Lower sales of high-margin e-prescription software
- Increased procurement costs/amortization costs
- Decreased revenue in CRO business
- Restructuring costs
- JPY 80M impact from corporate function transfer
Operating profit margin: 4.9%
Domain Strategy
Koichiro Sato
Senior Executive Vice
President,
Representative Director,
COO, CSO,
Head of Healthcare
Solutions Domain,
PHC Holdings Corporation
Improving Profitability and Efficiency
WEMEX: Creation of synergies with the acquired business
and distribution of cloud-based solutions
LSIM、Mediford: Restructuring business
Operating profit margin improvement:
2.0% (Fiscal Years 2024–2027)
Providing Solutions to Support Healthcare in Japan,
Where Challenges Are Emerging
Japan’s healthcare system faces a wide range of challenges, including rising healthcare expenditures associated with an aging population, increasing burdens on the working-age population that supports the system, shortages and geographic imbalances of healthcare professionals, worsening operating conditions for medical institutions, and regional disparities in access to healthcare services.
The Healthcare Solutions Domain supports healthcare institutions and professionals through a broad portfolio of services designed to address the needs of Japan’s medical frontline.
In fiscal year 2025, the domain achieved a modest increase in revenue, while operating profit declined. In the Clinical Testing business, market conditions remained stable, growth in our strategic genetic testing services continued, and cost reduction initiatives proved effective. In addition, the Central Laboratory of LSI Medience Corporation successfully regained ISO 15189 accreditation, and performance improvements continue to progress steadily in line with the Value Creation Plan 2027. In the Healthcare IT Solutions business, demand for e-prescription solutions slowed compared with fiscal year 2024 despite continued Japanese government-led promotion of healthcare digital transformation initiatives. Strong sales of key offerings, including electronic medical record (EMR) and medical-receipt systems, helped offset the decline. We also reinforced our growth platform through the complete integration of Wemex Healthcare Systems and the introduction of Medicom Cloud Karte, a cloud-based EMR solution integrating EMR/medical-receipt functionality for clinics. In the CRO business, lower clinical trial demand resulting from the impact of the previously revoked ISO accreditation negatively affected performance. To support recovery, we are continuing initiatives to expand business opportunities and enhance profitability.
In fiscal year 2026, the Clinical Testing business will continue to offer a wide range of testing services while enhancing its capabilities in cancer diagnostics and genetic testing. Through these efforts, we will contribute to disease prevention, rapid and accurate diagnosis, and more effective treatment. In the Healthcare IT Solutions business, we will focus on expanding sales of Medicom Cloud Karte and capturing demand related to digital transformation in healthcare aimed at achieving a 100% EMR adoption rate in Japan by 2030. The CRO business has recently updated its management structure. In addition, we established a new infectious disease research facility (BSL-3 facility) to support the development of vaccines and other therapies in preparation for potential future pandemics. We seek to continue contributing to the advancement of emerging treatment modalities.
As an indispensable partner to Japan’s healthcare community, the Healthcare Solutions Domain will continue supporting the operations of healthcare institutions and healthcare professionals while contributing to solutions for the challenges facing Japan’s healthcare system.
Clinical Testing Business*
Market Environment & Outlook
Japanese Contract Clinical Testing Market Trends
Source: In-house research
Market Environment
- General contract testing is recovering, with particularly strong growth in the genetic field.
- Demand for the implementation of FMS*1/Branch*2 Lab services remains strong, driven by efforts to reduce expenses and convert fixed costs into variable costs.
- *1FMS (FMS method): A service that supplies testing equipment, systems, reagents, consumables, etc. to hospital testing departments and provides testing laboratory management know-how.
- *2Branch (branch lab method): A model in which specimen testing is conducted within medical institutions. The service provides the personnel, testing equipment and systems, and other resources required to establish and operate a laboratory.
Outlook
- Although contract testing will be affected by price reductions resulting from medical fee revisions, continued growth is expected in the genetic field.
- A more strategic approach will be required to expand FMS and Branch Lab adoption.
Key Products & Services
- Clinical Testing Services
- As part of our clinical testing services, we offer a diverse range of tests in biochemistry, hematology, immunology, microbiology, genetics, and other fields. We help meet the need for greater accuracy and speed in advanced clinical testing through our laboratory automation systems. Additionally, we maintain a sales network across Japan and serve a broad range of customers, including medical institutions ranging from university hospitals to clinics, as well as government and public-sector institutions.
Source: In-house research
Strategy & Target
Strategy
- Promote price optimization initiatives
- Expand business areas in genetic testing and uninsured sectors
- Optimize business footprints
- Improve testing operations and strengthen quality management systems through IT utilization
Target (Fiscal Years 2024-2027)
Revenue CAGR: 2.1%
Business Strategy
Kenichi Uchino
Corporate Officer,
PHC Holdings Corporation
President and Representative
Director,
LSI Medience Corporation
Although demand for general contract testing is recovering, we recognize that rising fuel and material costs due to global instability, together with intensifying competition for talent in Japan due mainly to the declining birth rate and aging population, remain significant challenges.
After resolving a quality management issue, restoring the trust of customers and society was our highest priority in fiscal year 2025. We strengthened our quality management systems, while also focusing on profitability and efficiency.
To achieve the Value Creation Plan 2027, we will adjust our site network based on regional strategies—including collaboration with regional hub medical institutions and partner testing centers—strategically reallocate resources, and review workflows to improve the operating efficiency of the Central Laboratory.
In the growth areas of genetics and non-reimbursed testing, we will strengthen our presence in the research testing market for cancer genetics and expand services through strategic business partnerships that address market needs, aiming for sustainable growth and enhanced corporate value.
Our Precision Technologies
- Development of New Tests Using a Digital PCR Method
- As a wide variety of tests based on PCR technology are being implemented and genetic testing becomes increasingly sophisticated, we are focusing on digital PCR, a technology that enables efficient and quantitative analysis of multiple target genes, and are proceeding with the development of new testing assays.
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Digital PCR achieves absolute quantification by dividing a sample into microscopic partitions, performing PCR in each partition, and digitally counting the results. Because no standard curve is required, the process allows for efficient measurement and high workflow productivity, even when used with multiple target genes. Leveraging these characteristics, we launched a Multiplex Quantitative Analysis for Opportunistic Viral Infections. Opportunistic infections arise when immune function is compromised; the risk of severe illness is especially high in immunosuppressed patients following transplantation, making early therapeutic intervention essential. Because multiple viruses can cause these infections and are often difficult to identify from clinical symptoms alone, this test can detect several viruses simultaneously within a short timeframe. Clinicians have praised it as a test that is genuinely useful in actual clinical practice.
Going forward, we will continue to listen to the voices of healthcare professionals and bring needed tests to market.
Healthcare IT Solutions Business
Market Environment & Outlook
Healthcare Information Systems Market Trends
Source: In-house research
Market Environment
- With the advancement of the digital transformation (DX) of healthcare in Japan, the adoption of electronic medical record information sharing services is expected to accelerate, in addition to online verification of eligibility and e-prescriptions. To support this trend, a certification program for electronic medical record systems compliant with government-defined standard specifications was introduced.
- Adoption of affordable cloud-based electronic medical record systems is increasing among newly established medical institutions.
Outlook
- Policies are being promoted to achieve a 100% adoption rate of electronic medical records by 2030. More than 40,000 medical institutions in Japan have yet to introduce electronic medical records, so the market is expected to continue growing.
- Driven by Japanese government policy and systems, and continued adoption by small- and medium-sized companies, we expect continued significant growth in the health management field.
Key Products & Services
- Systems for Clinics
- By providing cloud-based, on-premises, and hybrid systems, we offer electronic medical record systems integrated with medical-receipt computers and tailored to customer needs. Robust claims-checking capabilities reduce data-entry burdens and prevent billing omissions and errors.
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Source: In-house research
- Systems for Pharmacies
- Standard inclusion of medication checking functions. Electronic medication history (EMH) to prevent prescription errors and support pharmacy management.
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- *No.1 share in electronic medical records for clinics
Source: Fuji Keizai Co., Ltd., “2025 Current Status and Future Outlook of the Medical, Healthcare, and Pharmaceutical DX-Related Markets,” 2024 results (value basis), electronic medical records for clinics (on-premises/cloud-based) No.1 share in medical-receipt computer systems for clinics and hospitals Source: Fuji Keizai Co., Ltd., “2022 Current Status and Future Outlook of the Medical Collaboration Medical Platform-related Markets,” based on 2020 Company shares (volume basis), medical-receipt computer systems (PHC results)
Strategy & Target
Strategy
- Develop the business around healthcare DX in Japan by supporting healthcare policy initiatives and providing highly innovative solutions
- Generate synergies and enhance competitiveness through the business integration with Wemex Healthcare Systems (WHS) in fiscal year 2025
- Strengthen the customer base and expand market share through the enhancement of cloud products
- Strengthen health management-related products and solutions
Target (Fiscal Years 2024-2027)
Revenue CAGR: 5.4%
Business Strategy
Hideaki Takahashi
Corporate Officer,
PHC Holdings Corporation
President and Representative
Director,
Wemex Corporation
Wemex integrated with Wemex Healthcare Systems (WHS) on October 1, 2025, bringing the two companies together as one. With a customer base of more than 50,000 and a nationwide support network, we are combining the businesses, technologies, and customer bases of both organizations amid rapid changes in the external environment. By accelerating management decision-making and improving operational efficiency, we are creating synergies and strengthening competitiveness. We are seizing opportunities arising from government-led healthcare DX initiatives and applying the latest technologies to products and services that address both policy trends and customer needs. For clinics, we offer a full lineup of cloud-based, on-premises, and hybrid solutions, including Medicom Cloud EMR, a cloud-based electronic medical record system integrated with medical-receipt functionality that was launched in April 2025. For pharmacies, we provide the Generative AI Medication Record Input Support Service and Wemex Pharmacy Management Support, a comprehensive management support system. By improving operational efficiency at major pharmacy chains and drugstores, these solutions enable pharmacists to spend more time with patients. In the area of prevention and pre-symptomatic diseases, we are providing preventive medicine solutions that improve operational efficiencies for companies, health insurance associations, and others. In telemedicine, we are developing support frameworks for healthcare in remote areas as well as organ donation, helping reduce the burden on healthcare professionals and improve patients’ access to care.
Our Precision Technologies
- A Development Leader Discusses How the Precision Technologies Behind Medicom Cloud EMR Solve Challenges in Healthcare Settings
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Wemex developed Japan’s first medical-receipt computer in 1972 and has advanced the digitalization of healthcare operations for more than 50 years. The expertise accumulated through close engagement with healthcare settings, coupled with persistent efforts to solve a wide range of challenges, is what underpins the precision-engineered design of Medicom Cloud EMR (“MCK”), which we launched in April 2025. One example of MCK’s problem-solving capabilities is its innovative integration with external testing centers. With conventional on-premises EMR systems, each medical institution had to manage and maintain test master data for approximately 80 external testing centers. Implementation staff at each institution were required to configure testing centers, import test master data, create and link test codes, and build order-entry screens, creating a substantial workload. MCK centrally manages testing-center master data in the cloud, enabling test orders and results to be exchanged without configuration work at the medical institution. This innovation dramatically reduces the implementation burden at healthcare sites and supports the rapid adoption of MCK. A patent application has been filed for the function, and we have built valuable capacity on our development team. Going forward, we will continue addressing challenges in healthcare settings and applying cutting-edge technologies, including generative AI, to stay at the forefront of healthcare DX.
Atsushi Ohata
General Manager
Medical Development Department, Development Division
Wemex Corporation
Market Environment & Outlook
Japanese CRO Market Trends
Source: In-house research
Market Environment
- Both the non-clinical and clinical trial markets in Japan are expanding, driven by factors including increasing R&D expenses at Japanese and global pharmaceutical companies, growth in Japan's clinical trial market resulting from efforts to address drug loss and drug lag, and Japanese government initiatives to strengthen the domestic ecosystem for academia and biotech ventures.
Outlook
- The narrowing and deepening of target areas by pharmaceutical companies and the growing number of pharmaceutical developments with new modalities are leading to a rising demand for CRO testing technology and responsiveness.
Key Products & Services
- Non-Clinical Contract Research Service
- Utilizing facilities that comply with GLP standards and state-of-the-art equipment, we conduct a wide variety of activities including tests for pharmaceutical approval applications, exploratory studies in the early stages of research and development, and consulting for private sector companies such as pharmaceutical and food companies, government and public offices, and academia.
- Bioanalysis Service
- We provide analytical method development, method validation, and biological sample analysis for drugs, their metabolites, and biomarkers. Leveraging a broad range of analytical techniques, we offer services tailored to each stage of research and development for new therapeutic modalities.
Strategy & Target
Strategy
- Strengthen competitiveness and expand the business through testing technologies and product offerings
- Expand engagement with academia and venture companies through networks with AMED and other organizations
Target (Fiscal Years 2024-2027)
Revenue CAGR: 4.5%
Business Strategy
Tetsuya Ueda
Representative Director and
President,
Mediford Corporation
Mediford is a leading contract research organization (CRO) in Japan that provides end-to-end support to global customers ranging from non-clinical and clinical fields through post-marketing activities. Amid the major changes taking place in the drug development environment, Mediford uses technical expertise accumulated over many years and state-of-the-art equipment to support a wide range of drug development areas, from analytical method development to safety and efficacy evaluation. In addition to small-molecule drugs, the business also addresses new modalities such as nucleic acid therapeutics and cell therapy products. The pharmaceutical industry in Japan is facing serious challenges of “drug lag” and “drug loss,” and we are working to help solve these issues by helping drug developers deliver innovative medicines to patients as quickly as possible. Separately, the adoption of new approach methodologies (NAMs) by the FDA and EMA is advancing in the United States and Europe, and in light of this global trend, we are building systems that can respond to increasingly diverse modalities and clinical trial markets, which are expected to expand. Going forward, we will continue to strengthen partnerships with academia and bio-ventures, adopt new technologies, and expand the areas we can support, all with the aim of achieving sustainable growth and enhancing corporate value. We see change as an opportunity and will continue to contribute to society as a partner in drug development.
Our Precision Technologies
- Deploying the PAC-LC Contract Analysis Service to Accelerate the Development of New Modalities
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In January 2025, we launched a cutting-edge contract analysis service using peptide adsorption-controlled liquid chromatography (PAC-LC) under a consulting agreement with Future Peak Co., Ltd., led by Ryoya Goda, the inventor of the technology. PAC-LC uses a proprietary adsorption-control mechanism. Compared with conventional liquid chromatography (LC) systems, it not only enables highly precise and sensitive analysis but also greatly simplifies complex sample-preparation processes, dramatically improving the speed and efficiency of drug-discovery research. This technology is particularly valuable for measuring highly complex new modalities and in vivo biomarkers that are essential for understanding pharmacokinetics. These new modalities include mid-sized therapeutics such as peptide and nucleic acid drugs, as well as antibody drugs and antibody-drug conjugates (ADCs), all of which are becoming increasingly prevalent in modern drug discovery. By combining Mr. Goda’s exceptional expertise from 28 years leading analytical operations and quantitative-method development at Daiichi Sankyo Co., Ltd., with our robust drug-discovery support platform, we have fundamentally strengthened our ability to meet increasingly complex analytical needs. From discovery research through clinical trials, we support earlier market introduction of new drugs by providing high-quality, scientifically robust data. We will work to support delivery of innovative treatment options to patients as quickly as possible.