Pharmarise Holdings Corporation

Business Details

A dispensing pharmacy business operating as licensed pharmacies under the Health Insurance Act, providing dispensing services for prescription drugs to general patients based on prescriptions issued by medical institutions. As of the end of the fiscal year under review, the company operated 406 stores (a net increase of 5 stores, reflecting 23 new openings and 18 closures compared to the prior period). In February 2026 (Reiwa 8), Sanko Medical Group Co., Ltd. (16 stores) joined the group, strengthening the dominant strategy in the Kanto area. The company is also focusing on expanding home/facility dispensing and strengthening the calculation of dispensing technical fees through acquisition of facility standard certifications.

Recent Overview

Significant V-shaped recovery achieved through M&A effects and PMI promotion, with revenue up 12.7% and segment profit up 139.8%.

In the fiscal year under review (June 2025 to May 2026), rapid promotion of store count increases and integration activities from M&A conducted through the prior fiscal year resulted in revenue of ¥59,331 million (up 12.7% year on year) and segment profit of ¥1,386 million (up 139.8% year on year). On February 13, 2026 (Reiwa 8), Sanko Medical Group Co., Ltd. (16 stores) joined the group, contributing to strengthening the pharmaceutical distribution system through collaboration with the pharmaceutical wholesale business and promoting the dominant strategy in the Kanto area. Strengthened acquisition of facility standards, reduced SG&A expenses, and expansion of home dispensing drove profit improvement. Note that since Sanko Medical Group's deemed acquisition date is set as March 31, 2026 (Reiwa 8), its performance contribution is not included in the income statement for the fiscal year under review.

Key Products

Growth Drivers

• Expansion of store count through M&A (406 stores at the end of the fiscal year under review) and strengthened collaboration/synergy creation with the pharmaceutical wholesale business through the acquisition of Sanko Medical Group
• Profit contribution from integrated stores and reduction of SG&A expenses through headquarters operational efficiency improvements achieved through post-M&A PMI promotion
• Increased calculation of dispensing technical fees through strengthened acquisition of facility standards such as the regional support system addition
• Further expansion of home/facility dispensing (597 thousand prescriptions, revenue of ¥4,585 million, both increased year on year)
• Increased store visits and expanded prescription volume through digital initiatives such as utilizing the official LINE account
• Deepening of patient retention and community-based operations through strengthened family pharmacist functions (such as the expansion of the dementia cafe to 109 locations)

Risks

• Revenue pressure from dispensing fee schedule revisions (expected to impact the next fiscal year) and annual drug price revisions (particularly the risk of reduced basic dispensing fees targeting large chains)
• Profit pressure from increased goodwill amortization associated with M&A (¥728 million in the fiscal year under review) and PMI costs from Sanko Medical Group
• Risk of amount fluctuation associated with the finalization of identifiable assets and liabilities related to goodwill (¥1,232 million, provisionally calculated) arising from the acquisition of Sanko Medical Group
• Cost increase risk associated with fluctuations in the procurement environment (stable supply issues for pharmaceuticals, quality issues at generic drug manufacturers)
• Rising personnel expenses due to wage increases and intensifying competition to secure pharmacists
• Operational risks such as dispensing errors and personal information leaks (directly linked to patients' life and health)