Welby Inc.

Business Details

Under the mission of "Empower the Patients," the company operates PHR platform services spanning multiple disease areas, from lifestyle-related diseases such as diabetes and hypertension to autoimmune diseases and oncology. The business is built on two pillars: the Disease Solution Service for pharmaceutical companies and the Welby MyKarte Service. Through capital and business alliances with Nippon Life Insurance Company, Chubu Electric Power, NTT DOCOMO, and others, the company is promoting adoption among insurers, local governments, and medical institutions. Integration with Mynaportal enables acquisition and viewing of vaccination history, medication information, and specific health checkup data.

Recent Overview

Q1 revenue increased 10.7% year on year, and operating loss improved compared with the same period last year. While the Disease Solution Service performed well, MyKarte revenue declined due to timing shifts.

Revenue for Q1 FY2026 (ending March 2026) was ¥133 million (up 10.7% year on year). The Disease Solution Service saw a significant revenue increase to ¥93 million (up 80.5% year on year) driven by new PHR service orders from pharmaceutical companies. Meanwhile, the Welby MyKarte Service saw revenue decline to ¥40 million (down 41.7% year on year) due to timing shifts in certain projects. Operating loss was ¥157 million, a modest improvement from ¥161 million in the same period last year. Upfront investment (MyKarte platform development) amounted to ¥35 million. The Patient-Oriented Medical Information Platform commenced service in April 2026. "Healthcare Passport plus," based on the business alliance with TIS Inc., is scheduled to launch from July 2026 onward. Exercise of conversion rights on convertible bonds increased common stock and capital surplus by ¥30 million each. The full-year earnings forecast (revenue of ¥1,466 million, operating loss of ▲¥30 million) remains unchanged.

Key Products

Growth Drivers

• Continued pharmaceutical company DX demand for the Disease Solution Service and expansion of new PHR service orders (Q1 FY2026 up 80.5% year on year)
• Securing orders and recognizing revenue from large-scale projects toward the full-year revenue forecast of ¥1,466 million (up 130.5% year on year)
• Creation of a new revenue source through the Patient-Oriented Medical Information Platform launched in April 2026
• Expansion into the community-based integrated care market through "Healthcare Passport plus," a collaboration with TIS Inc. (scheduled to launch in July 2026)
• Channel expansion and commercialization of solutions for insurers and local governments through capital and business alliances with Nippon Life Insurance Company, Chubu Electric Power, NTT DOCOMO, and others
• Enhanced value of PHR usage through implementation of functions to acquire and view vaccination history, medication information, and specific health checkup data via Mynaportal integration
• Expansion into disease areas such as oncology and autoimmune diseases, and the emergence of symptom and side-effect monitoring needs from pharmaceutical companies
• Participation in the PHR Service Business Association and efforts toward industry standardization through promotion of data portability
• Expansion of the diabetes severity prevention business through enhanced CGM data integration with Abbott Japan LLC's FreeStyle Libre

Risks

• Risk of timing shifts in Welby MyKarte Service projects (Q1 FY2026 revenue down 41.7% year on year) and lengthening order lead times due to larger-scale projects
• Risk of a back-half-loaded structure in achieving the full-year revenue forecast of ¥1,466 million (up 130.5% year on year), given that Q4 has historically accounted for approximately 40% of full-year revenue
• Weakening financial base due to continued operating losses and expanding accumulated losses (equity ratio of 15.0%, cash and deposits of ¥516 million)
• Outstanding balance of ¥317 million in convertible bond-type bonds with subscription rights to shares (dilution risk from exercise of conversion rights and interest-bearing debt)
• Time-related and cash-flow risk until stable monetization is achieved amid delays in the PHR market's development
• Risk of timing shifts or shortfalls in orders for the Disease Solution Service
• Regulatory compliance risk regarding the handling of medical data containing sensitive personal information (Three Ministries' Two Guidelines, Personal Information Protection Act, etc.)
• Risk of impairment losses on fixed assets (software, goodwill, etc.) (goodwill balance of ¥94 million)