In Japan, the baby boomer generation will be 75 years old or older in 2025, and in response to the accelerating progression of the super-aging society, various system reforms are underway to simultaneously "control the increase in medical expenses" and "provide high-quality medical services. In order to realize these goals, various institutional reforms are underway, including the "establishment of a community-based comprehensive care system and the promotion of differentiation, reinforcement, and coordination of medical functions. Against this backdrop, the environment surrounding the medical and pharmaceutical industries is undergoing major changes, and industry reorganization is expected to accelerate.


In the dispensing pharmacy industry, a certification system for pharmacies with specific functions by prefectural governors was initiated in August 2021 to enable patients to select a pharmacy that is suitable for them. Under this system, "Community Collaboration Pharmacies," which are capable of providing home medical care and coordinating medication information with other medical institutions, including those at the time of admission to and discharge from hospitals, and "Specialty Medical Institution Collaboration Pharmacies," which must be highly specialized and able to handle more advanced pharmacy management, such as for cancer patients, have begun to be certified. In addition, the government has introduced dispensing fee revisions that emphasize the strengthening and utilization of family pharmacy functions, provision of at-home medical care, and promotion of healthcare digitalization. These revisions indicate an expanding role of pharmacies and pharmacists as community medical institutions and healthcare providers, coupled with an increasing demand for their adaptability in response to significant changes in the operating environment.


We are actively promoting the central management of medication information using our electronic medication notebook, Okusuri Techo Plus, which provides medication guidance tailored to each patient, cooperates with medical institutions, and enhances post-dispensing consultations and follow-ups. We were among the first in the industry to expand online healthcare services, using our in-house developed online pharmacy service NiCOMS and handle electronic prescriptions. Further, to provide higher quality medical services to patients, many of our pharmacies have obtained certifications as specialized medical institution cooperation pharmacies and regional cooperation pharmacies ahead of industry peers. As such, we focus on developing pharmacies that serve as hubs for local medical institutions and advanced medical care, while also cultivating highly specialized pharmacists.


In the Pharmaceutical Manufacturing and Sales Business, the target of "80% or more in all prefectures by the end of FY2029, while ensuring the reliability of quality and stable supply of generic drugs" as the percentage of generic drugs used by volume remains unchanged. In addition, a new secondary target of "at least 65% of the market share of generic drugs by the end of FY2029" has been set, and the expansion of generic drugs is still required.Furthermore, the generic drug industry is undergoing a period of major change, as NHI drug prices will be revised every year from FY2021 onward, with NHI price revisions in intermediate years in addition to the regular biennial NHI price revisions. In addition, as generic drugs become more widely available, there is an increasing need to develop and strengthen systems for ensuring a stable supply and reliability of quality, as well as for collecting and providing information. As a company that aims to be "The most trusted partner in healthcare” by 2030, we recognize that we have a social responsibility to fulfill in meeting these demands.


In the medical professional staffing and placement business, market demand for the pharmacist business is shifting dramatically from temporary staffing to placement due to the launch of the Family Pharmacist System. The Group has been quick to seize on this change in demand and shift from the temporary staffing business to the placement and referral business, and is working to expand its share of the pharmacist business by raising awareness of the Medical Resource brand. In addition, in the physician business, we have been strengthening our efforts since 2017 to expand nationwide, and in November 2020, we began providing industrial physician services to meet the demands of health management, which is becoming increasingly important in corporate management, and we will continue to work on further business expansion to meet the demands of the human resources market. The Group will continue to expand its business to meet the demands of the human resources market.


The Group aims to overcome major changes in the business environment and become a corporate group that can survive the restructuring of the industry, and each company in the Group will improve its management efficiency and productivity. In addition, based on our new group philosophy, our mission, "To give people the closest possible support," we will strengthen our sustainability management and contribute to the development of a sustainable society through the resolution of social issues.