TAUNS Laboratories,Inc.
197A・Standard Market・Pharmaceuticals
Business
Towns Co., Ltd. is a manufacturer specializing in in-vitro diagnostics, founded in 1987, and operates as a single-segment business manufacturing and selling antigen test kits for infectious disease POCT (point-of-care testing) using immunochromatographic methods. Its flagship product line, the "ImmunoAce®" series, covers a wide range of infectious diseases centered on respiratory infections such as influenza, COVID-19, RSV, and adenovirus, with domestic hospitals and private practitioners as its main customers. The company leverages a distribution network through pharmaceutical wholesalers (with the Suzuken Group accounting for 59.4% of sales) and also supplies products to international organizations such as the WHO, as well as research institutions and biotech ventures. It listed on the Standard Market of the Tokyo Stock Exchange in June 2024.
Business Model
The company produces antigen test kits using immunochromatography on a make-to-forecast basis at its own factory (Kamishima Plant, Izunokuni City, Shizuoka Prefecture), and sells them to medical institutions nationwide through pharmaceutical wholesalers led by the Suzuken Group. Product differentiation is supported by its proprietary platinum-gold colloid technology, which enables the highly visible "Black Line," as well as a design that allows common use of the specimen extraction solution, achieving a high-profitability structure with a gross profit margin of 68.6% and an operating margin of 44.4% in FY2025 (ended June 2025).
Company Strengths
Against net sales of ¥18,627 million in FY2025 (ended June 2025), the company achieved operating profit of ¥8,265 million and an operating profit margin of 44.4%. The gross profit margin also remained at a high level of 68.6%, continuing to improve from the previous period (43.6% and 67.8%, respectively). The EBITDA margin reached 48.2%, and even amid a shrinking scale of infectious disease outbreaks, the company achieved higher sales and profits through market share expansion and improvement in the high-value-added product mix.
Using platinum-gold colloid particle technology patented in 2007, the determination line is displayed in black (black line). Compared to gold colloid (reddish-purple) and colored latex (red/blue), this offers higher contrast against the white membrane and superior visibility. This proprietary technology is applied across the entire "ImmunoAce®" series and has earned high praise from healthcare professionals.
Sales of the combo test kit capable of simultaneous SARS-CoV-2/Flu testing increased 24.2% from ¥6,375 million in FY2024 (ended June 2024) to ¥7,921 million in FY2025 (ended June 2025). Reflecting on the previous period's forced supply adjustments, the company secured sufficient inventory in advance, maintaining stable supply even during the year-end/New Year demand surge. Even amid a shrinking scale of outbreaks, sales of the standalone COVID-19 kit also grew 3.0%, confirming market share expansion.
ENVALITH's Perspective
Performance Trend
The company achieved two consecutive periods of revenue and profit growth in FY2024 (ending June 2024) and FY2025 (ending June 2025) (net sales ¥18,435 million → ¥18,628 million; operating profit ¥8,030 million → ¥8,265 million), but FY2026 (ending June 2026) has turned into a phase of sharp earnings deterioration. Cumulative sales for the first three quarters were ¥10,663 million (down 39.4% year on year), with operating profit of ¥3,509 million (down 62.4% year on year). External factors included the shrinking of the COVID-19 pandemic combined with the digestion of market inventories that wholesalers had built up in the same period of the prior year. Influenza began spreading early from late September and continued for an extended period, but this was not enough to offset the decline in COVID-related demand. The full-year earnings forecast (net sales of ¥15,048 million, operating profit of ¥4,368 million) anticipates significant declines of 19.2% and 47.1% year on year, respectively.
Growth Strategy
Strengthening the production base through the new plant and expanding the business domain into next-generation technologies and new disease areas
The company has made large-scale capital investment in a new plant. As of the end of March 2026, construction in progress declined significantly from ¥8,213 million to ¥180 million, indicating that completion and startup of the new plant are progressing. The two-site structure aims to diversify production risk, reduce logistics costs, and improve supply stability.
The COVID-19/influenza combo test kit is the company's core product, accounting for approximately 39% of total sales at ¥4,172 million on a cumulative basis for the third quarter. The company aims to maintain a stable supply structure even during periods of declining epidemic activity, so as to capture demand when infectious disease outbreaks recover.
Aiming to shift to a revenue structure that is not dependent on infectious disease outbreaks, the company is promoting new product development in digital immunoassay (D-IA) technology and in the chronic disease and preventive health (pre-disease) areas. The timing of monetization remains unclear, and this is currently at the development stage.
Last updated: July 17, 2026