ENVALITH
株式会社ファーマフーズ logo

Pharma Foods International Co., Ltd.

2929・Prime Market・Foods

Official website
株式会社ファーマフーズ logo
Pharma Foods International Co., Ltd.2929

Business

Pharma Foods International Co., Ltd. is a healthcare company founded in Kyoto in 1997. Under its mission of "contributing through medical and food research," the company leverages its proprietary egg-derived biotechnology as its core competency to operate three businesses: (1) contract manufacturing of functional ingredients and pharmaceuticals for food and pharmaceutical manufacturers (BtoB business), (2) direct-to-consumer mail order sales utilizing its proprietary ingredients (BtoC business), and (3) drug discovery R&D for antibody drugs and peptide drugs (biomedical business). The company is listed on the Prime Market of the Tokyo Stock Exchange. Consolidated net sales for FY2025 (ended July 2025) were ¥65,260 million, with the BtoC business accounting for 86.9% of sales composition. Against the backdrop of a super-aging society and demand for extending healthy life expectancy, the company is pursuing its medium-term management plan, the "New Value Creation 1K Project," targeting sales of ¥100 billion. Through a capital and business alliance with ITOCHU Corporation (concluded in October 2024), the company aims to expand its sales channels both domestically and internationally.

Business Model

In the BtoB business, the company sells proprietary functional ingredients such as "Pharma GABA" to food and beverage manufacturers, securing stable revenue. In the BtoC business, it sells supplements, quasi-drugs, and cosmetics containing the same ingredients via mail order, maintaining and expanding its base of 773,009 subscription customers (as of end-July 2025) through advertising efficiency optimization based on CPO and LTV monitoring. In the biomedical business, the company conducts in-house development through preclinical trials and adopts a licensing-out model to major pharmaceutical companies, earning upfront contract payments, milestones, and royalties. The company has a vertically integrated revenue cycle structure in which operating cash flow from the BtoB and BtoC businesses funds drug discovery R&D, capital expenditure, and M&A.

Company Strengths

Launched in 2001, the GABA material "PharmaGABA" supports six function claims including "stress relief," "blood pressure improvement," and "sleep quality improvement," and has been adopted by major domestic beverage and food manufacturers, with strong exports to North American supplement manufacturers. In FY2025 (ended July 2025), Functional Materials sales reached ¥3,128 million (up 20.8% year on year), driving growth. Brand awareness expansion is being promoted through collaboration with the Mitsubishi Corporation group.

In the BtoC Business, sales of "Pharmaceuticals & Quasi-drugs" reached ¥43,266 million in FY2025 (ended July 2025), up 18.0% year on year, marking substantial growth. The number of regular customers at Meiji Yakuhin Co., Ltd. expanded rapidly to 2.7 times the level at the end of the previous fiscal year. Cumulative shipments of "Neumo Hair Growth Lotion" exceeded 30 million bottles. The number of regular customers across the group reached 773,009 (up 3.5% year on year), forming a stable recurring revenue base.

Based on the proprietary platform technology "ALAgene Technology," the company concluded an exclusive license agreement with Mitsubishi Tanabe Pharma Corporation in 2021. In FY2025 (ended July 2025), Takeda Pharmaceutical Company Limited exercised a buyout option, transferring antibody sequence information and patents in exchange for consideration received. Phase I clinical trials conducted by Mitsubishi Tanabe Pharma Corporation were also completed in July 2025, confirming progress in the drug discovery pipeline.

ENVALITH's Perspective

Operating loss for the cumulative third quarter of FY2026 (ending July 2026) was ¥1,430 million, deteriorating significantly from the loss of ¥217 million in the same period of the prior year. Advertising expenses expanded to ¥30,061 million (up 6.2% year on year), while sales growth remained limited at 3.7%. The full-year forecast of ¥2,000 million in operating profit (down 15.5% year on year) has been maintained, but this requires recording approximately ¥3,430 million in operating profit in the fourth quarter alone, a level far exceeding the prior-year fourth quarter (¥2,584 million). Whether this target can be achieved warrants careful scrutiny.

Cumulative operating cash flow for the third quarter of FY2026 (ending July 2026) was -¥3,557 million (versus -¥982 million in the same period of the prior year), a significant deterioration. Corporate tax payments of ¥2,525 million weighed on the results. Short-term borrowings increased by ¥5,000 million, from ¥11,400 million at the end of the prior fiscal year to ¥16,400 million, and the equity ratio declined from 35.4% to 28.9%. Cash and cash equivalents at quarter-end stood at ¥8,665 million, down from ¥9,057 million at the end of the prior fiscal year, indicating a need for attention to the declining trend in liquidity on hand.

Segment income for the BtoC business fell from a profit of ¥591 million in the same period of the prior year to a loss of ¥342 million. While advertising expenses of ¥29,975 million (up 6.5% year on year) were invested, supplement sales fell sharply to ¥4,209 million (down 22.3% year on year), which weighed on results. Cosmetics also declined 3.4% year on year. Although growth in pharmaceuticals and quasi-drugs (up 11.5% year on year) provided support, the outlook for investment recovery warrants careful assessment. As for the external environment, rising health consciousness is a tailwind for the BtoC market, but there is also a risk of declining advertising efficiency due to intensifying competition.

Growth Strategy

Toward a sales target of ¥100 billion, the company is driving growth along three axes: cultivating new products, expanding globally, and licensing out its drug discovery pipeline.

The company is accelerating acquisition of subscription customers for new products addressing deep-seated health needs such as intestinal regulation, tinnitus, and nocturia—including "Lactron Tablets" (up 46.6% year on year), "Tenrai Seiryu Tablets," "Health Pan C Tablets 2000," and "Tenrai Kobo-o"—to cultivate a revenue pillar to follow the "Newmo" brand.

Preparations for obtaining US FDA GRAS (Generally Recognized as Safe) status are in the final stage, and expanded sales in the North American functional foods and beverages market are expected once obtained. The company has also secured new adoption by a Thai beverage manufacturer, and its global sales network is expanding, centered on North America and Asia.

Leveraging ITOCHU Corporation's network, the company is placing functional beverages and hair growth products such as "Newmo D" in general merchandise stores and drugstore chains. It is expanding the in-store sales network for its proprietary brand products, aiming to diversify its revenue structure away from reliance on mail order.

The company aims to advance partnering activities for the CasMab antibody (oncology field), conclude an exclusive licensing agreement for a CADASIL treatment (intractable disease field), and progress its autoimmune disease candidate MT-3534 to the next phase following completion of Phase I clinical trials. Proof-of-concept testing of an AI-driven next-generation drug discovery platform is also underway.

Under the adoption of NEDO's "Bio-manufacturing Revolution Promotion Project," the company, following its eggshell membrane-derived new fiber "ovoveil," has succeeded in developing a new electrode material for supercapacitors for use in electric vehicles, smart devices, and data centers. Development of applications for next-generation digital industries is progressing further.

Last updated: July 17, 2026