TERUMO CORPORATION

Business Details

The Cardiac and Vascular Company consists of four sub-segments: Interventional Systems (angiography, PTCA, etc.), Neuro (cerebral aneurysm and cerebral infarction treatment), Cardiovascular (oxygenators and heart-lung machines), and Aortic (artificial blood vessels and stent grafts). As the core business accounting for approximately 60% of Group revenue, it drives high growth overseas (particularly in the Americas), centered on access products leveraging strength in the radial approach (TRI). For FY2026 (ending March 2026), revenue was ¥676,421 million and adjusted operating profit was ¥163,994 million.

Recent Overview

Revenue grew 8.3% on overseas growth across all businesses, while multiple impairment losses and litigation costs weighed on non-recurring items.

Revenue for FY2026 (ending March 2026) was ¥676,421 million (up 8.3% year on year; up 7.4% excluding foreign exchange impact). Overseas revenue grew across all businesses, led by Interventional Systems, up 8.6% year on year, while Japan revenue grew 5.9% year on year driven by strong performance in Interventional Systems and Neuro. Meanwhile, non-recurring items included an impairment loss of ¥4,520 million associated with the termination of an exclusive distribution rights agreement at a subsidiary in the Americas, an impairment loss of ¥2,238 million due to the discontinuation of a profitability improvement project, an impairment loss of ¥2,084 million due to discontinuation of development in the Aortic business, an impairment loss of ¥1,423 million due to discontinuation of development in the Cardiovascular business, and litigation-related expenses of ¥5,507 million.

Key Products

Growth Drivers

• Expansion of the radial approach (TRI) and growth of access products in Interventional Systems, particularly in the Americas (overseas revenue up 8.6% year on year)
• Strong performance of the Neuro business (cerebral aneurysm and cerebral infarction treatment) in Japan (contributing to domestic revenue growth of 5.9% year on year)
• Continued growth of core businesses driven by expanding healthcare demand across Europe, Asia, and other global regions
• Building an expanded production system and cost reductions through global optimal-location manufacturing (a three-region structure spanning Costa Rica, Japan, and Vietnam)
• Acceleration of global expansion of the CDMO business (establishment of an overseas CDMO production base through the acquisition of the Leverkusen, Germany plant)

Risks

• Volatile U.S. tariff policy developments, with uncertain impact on supply chain costs (impact on gross profit recognized)
• Ongoing preparation costs associated with compliance with the European Medical Device Regulation (MDR) (¥1,629 million included in current-period adjustments)
• Burden of amortization of acquisition-related intangible assets (¥10,723 million in the current period) and non-recurring gain/loss risks (exclusive distribution rights impairment of ¥4,520 million, litigation-related expenses of ¥5,507 million, etc.)
• Ongoing impairment losses from discontinuation of multiple development projects (the majority of the ¥11,363 million total in the current period attributable to the Cardiac and Vascular Company)
• Increased financial leverage from substantial borrowings associated with the OrganOx acquisition, and impairment risk on goodwill of ¥138,230 million
• Impact of declining official (reimbursement) prices in Japan (downward pressure on domestic revenue in the Interventional Systems business)