KAINOS Laboratories, INC.

Kainos Laboratories, Inc., founded in 1975, is a manufacturer and distributor of in-vitro diagnostic products (clinical diagnostic reagents) and medical devices, listed on the Standard Market of the Tokyo Stock Exchange. With Biochemical Test Reagents and Immunoserological Test Reagents & Instruments as its core products, the company handles development, production (at its Kasama Plant in Ibaraki Prefecture), and sales in an integrated manner. Its main customers are medical institutions such as hospitals and testing centers, with sales conducted primarily through pharmaceutical wholesalers such as Toho Yakuhin and Alfresa. Leveraging technology and sales alliances with Asahi Kasei Pharma, Sysmex, Nippon Kayaku, and others, the company is expanding into high-value-added areas such as blood transfusion testing, tumor markers, and sepsis diagnosis. It is an independent specialist manufacturer operating a single business, with no subsidiaries or affiliated companies.

The company manufactures biochemical and immunoserological test reagents at its own plant (Kasama Plant) and sells them to medical institutions through pharmaceutical wholesalers such as Toho Pharmaceutical and Alfresa (the top two wholesalers account for approximately 24% of net sales). Product sales account for approximately 86% of net sales, with the remaining approximately 14% coming from the purchase and resale of goods from partner companies. Test reagents are consumables that are continuously used in clinical settings, creating a structure in which stable, recurring demand arises once a product is adopted. Through technical partnerships with companies such as Sysmex, the company also develops and supplies reagents for measurement instruments outside its own platform.

Revenue grew for five consecutive fiscal periods, rising from ¥4,615 million in FY2022 to ¥5,480 million in FY2026. However, the growth rate slowed to 3.3% in FY2026. Operating income peaked at ¥865 million in FY2024 and has declined for two consecutive periods, reaching ¥747 million in FY2026 (operating margin of 13.6%). Net income for the period fell sharply to ¥449 million (down 29.9% year-on-year) due to the recognition of an extraordinary loss of ¥154 million in tender offer-related expenses. In terms of the external environment, rising manufacturing costs driven by the depreciation of the yen weighed on profitability. The Immunoserological Test segment (up 8.5% year-on-year) drove revenue growth, while the Biochemical Test segment struggled, declining 3.6% year-on-year. Operating cash flow decreased to ¥553 million from ¥704 million in the previous period, but cash and cash equivalents increased by ¥344 million year-on-year to ¥3,400 million, indicating a solid financial foundation.