ENVALITH
わかもと製薬株式会社 logo

WAKAMOTO PHARMACEUTICAL CO.,LTD.

4512・Standard Market・Pharmaceuticals

Official website
わかもと製薬株式会社 logo
WAKAMOTO PHARMACEUTICAL CO.,LTD.4512

Business

Wakamoto Pharmaceutical, founded in 1929, is a health-related company listed on the TSE Standard Market. Its operations comprise four segments: the Pharmaceuticals Business, Healthcare Business, Global Business, and Real Estate Leasing Business. In the Pharmaceuticals Business, the company operates as a specialty pharma in the ophthalmology field, offering a full lineup of original and generic pharmaceuticals, medical devices, and health foods. In the Healthcare Business, the company sells oral care and femcare products centered on its mainstay product, Kyoryoku Wakamoto. The Global Business handles exports to Asia and Europe/the US, cross-border e-commerce, and the lactic acid bacteria business. Major customers span a wide range, including ophthalmology medical institutions, dispensing pharmacies, general consumers, and overseas distributors.

Business Model

Based on manufacturing at its own plant (Sagamiooi Plant), the company supplies prescription pharmaceuticals to medical institutions via wholesalers (Mediceo, Suzuken, etc.), while OTC products are sold through drugstores, online shops, and other channels. In the Global Business, the company expands overseas using cross-border e-commerce and local distributors. R&D expenses amount to 4.8% of net sales (¥478 million), continuously expanding the product pipeline in the ophthalmology field and lactic acid bacteria applications. Real estate leasing income related to COREDO Muromachi provides a stable base of earnings.

Company Strengths

The company has established a full lineup system specialized in ophthalmology, capable of providing branded pharmaceuticals (Macuaid for Intraocular Injection), generic pharmaceuticals (Carteolol Hydrochloride LA Ophthalmic Solution, etc.), medical devices (multifocal intraocular lenses AcrivaTrinova Pro and AcrivaTrinova Pro Toric), in vitro diagnostic products, and health foods, all under one company. It possesses a product portfolio that is difficult for competitors to replicate in a short period of time.

"Kyoryoku Wakamoto," launched in 1962, is a long-established brand with high recognition in the domestic OTC market. The company has a track record of expansion into Taiwan, cross-border e-commerce in China, and Southeast Asia, achieving Global Business sales of ¥2,410 million in FY2026 (ending March 2026) (up 34.8% year on year). Overseas expansion leveraging brand equity contributes to revenue diversification.

The company owns ophthalmic solution manufacturing lines and lactic acid bacteria culturing facilities at its Sagamioi Plant, maintaining a GMP-compliant quality control system. Its culturing and formulation technology for lactic acid bacteria and koji mold has accumulated over 60 years of expertise since the facility was completed in 1961, forming a proprietary technological foundation that is utilized across multiple segments including the Pharmaceuticals Business, Healthcare Business, and Global Business.

ENVALITH's Perspective

The turnaround to operating profit in FY2026 (ending March 2026) (¥255 million) was mainly attributable to the resumption of supply of Macuaid for Intraocular Injection (April 2025) and a sharp increase in product sales (from ¥538 million to ¥1,968 million). However, the Pharmaceuticals Business segment still posted a loss of ¥674 million, and structural profitability improvement has not yet been achieved. For FY2027 (ending March 2027), the company forecasts operating profit of ¥200 million (down 21.7% year on year) due to the impact of drug price revisions including the repayment of the pioneer drug premium (Shinyaku Sōshutsu Kasan) related to Macuaid for Intraocular Injection, and uncertainty remains regarding whether the profitable level can be maintained or expanded.

Cash flow from operating activities remained negative at ¥(487) million in FY2026 (ending March 2026), marking three consecutive periods of negative operating CF. This was mainly due to an increase in trade receivables of ¥907 million and an increase in inventories of ¥872 million, reflecting a notable expansion in working capital associated with sales growth. Cash and cash equivalents decreased to ¥2,006 million (from ¥2,955 million in the previous period), and the company began raising long-term borrowings of ¥300 million for the expansion of equipment at the Sagamioi Plant. Investing cash flow also expanded to ¥(658) million, and the timing of an improvement in free cash flow remains a key point of attention.

The company's forecast for FY2027 (ending March 2027) calls for revenue of ¥11,000 million (up 11.0% year on year), but operating profit of ¥200 million (down 21.7%) and ordinary profit of ¥200 million (down 22.0%), indicating higher revenue but lower profit. Profit is expected to be squeezed by the impact of drug price revisions in Japan, including the repayment of the pioneer drug premium related to Macuaid for Intraocular Injection. The forecast net income of ¥230 million (up 1.2%) incorporates extraordinary gains from the sale of investment securities, meaning the underlying earnings power remains limited. The company plans to maintain its dividend at ¥3.50 per share, with a payout ratio of 52.8%. There remains a substantial gap versus the 8% ROE target.

Growth Strategy

Aiming for ROE of 8% through expansion of the full ophthalmology lineup, global expansion of the Wakamoto brand, and growth of the lactic acid bacteria business

Full-scale sales expansion of Macuaid for Intraocular Injection, for which supply resumed in April 2025, both domestically and overseas. Pharmaceuticals Business sales for FY2026 (ending March 2025) grew significantly to ¥4,762 million (up 37.1% year on year), but FY2027 (ending March 2025) is expected to be affected by drug price revisions, including the return of the New Drug Creation Premium. Maintaining a stable supply system remains an ongoing challenge.

Launched the AcrivaTrinova Pro (Multifocal Intraocular Lens) in June 2025, followed by the toric model for astigmatism, AcrivaTrinova Pro Toric, in January 2026. Being cultivated as a new pillar of earnings for the Medical Devices business. The transfer of manufacturing and marketing rights for the ophthalmic surgical adjunct (Sodium Hyaluronate Ophthalmic Viscoelastic Agent) has also been completed, expanding the full ophthalmology lineup.

Implemented a renewal of Avanbeads, launched a new product for hypersensitivity care, expanded the Femiflora series (Folic Acid Plus and Soy Isoflavone Maca & GABA), and renewed the packaging of Wakamoto Seichozai. Healthcare Business sales for FY2026 (ending March 2025) grew steadily to ¥2,542 million (up 8.4% year on year).

Success of SNS promotions in cross-border e-commerce in China drove significant growth in Global Business sales for FY2026 (ending March 2025), reaching ¥2,410 million (up 34.8% year on year). The domestic lactic acid bacteria business also increased sales through a problem-solving sales approach. For FY2027 (ending March 2025), further growth is planned, driven by expansion of cross-border e-commerce in China and the lactic acid bacteria business.

Spent ¥335 million on partial expansion of the Sagamioi Plant facilities (recorded as ¥505 million in construction in progress). Expenditure on acquisition of property, plant and equipment expanded to ¥564 million (from ¥450 million in the previous fiscal year). While bearing the risk of a single production site, the company is working to secure supply capacity in response to growing demand. Newly raised ¥300 million in long-term borrowings to fund this.

Last updated: July 19, 2026