ENVALITH
株式会社ファルコホールディングス logo

FALCO HOLDINGS Co., Ltd.

4671・Standard Market・Services

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株式会社ファルコホールディングス logo
FALCO HOLDINGS Co., Ltd.4671

Business

Falco Holdings is a healthcare-related holding company composed of three segments: Clinical Laboratory Testing Business (approximately 61% of sales), Dispensing Pharmacy Business (approximately 35%), and ICT Business (approximately 4%). In the Clinical Laboratory Testing Business, the company undertakes Contract Clinical Specimen Testing from hospitals and clinics nationwide, and also manufactures and sells in-vitro diagnostic products while developing genomic medicine-related testing. In the Dispensing Pharmacy Business, it operates 101 stores (including 3 franchise stores), strengthening its response to elderly care facilities and home healthcare. In the ICT Business, the company provides Recesta, a cloud-based receipt support service for clinics, and HAYATE／NEO, a cloud-based electronic medical record system for small and medium-sized hospitals, driving medical DX promotion. Its main customers are medical institutions (hospitals and clinics) as well as patients and elderly care facilities. With a history dating back to its founding in 1962, the company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

The Clinical Laboratory Testing Business is founded on continuous flow revenue from specimen contracting by medical institutions. The Dispensing Pharmacy Business secures stable revenue based on prescription fulfillment. The ICT Business operates a subscription-type stock revenue model that leverages the characteristics of cloud services, with a structure in which profit margins improve as the number of contracts increases. In FY2026 (ending March 2026), the ICT Business operating profit margin reached 26.6%, contributing to improved profitability for the group as a whole.

Company Strengths

Built on a foundation of Contract Clinical Specimen Testing (net sales of ¥26,662 million), the company has vertically integrated the medical value chain—from manufacturing and marketing the in-vitro diagnostic "MSI Test Kit (FALCO)," contract NIPT (Non-Invasive Prenatal Testing), and R&D for Hereditary Tumor Panel Testing, to medical information system development. This gives it a composite business foundation that competitors find difficult to replicate in a short period.

At the end of FY2026 (ending March 2026), the equity ratio stood at 70.0%, with interest-bearing debt of ¥1,255 million against cash and cash equivalents of ¥8,267 million. This near debt-free financial structure allows the company to maintain flexible capital allocation for capital expenditure, shareholder returns, and M&A.

In March 2023, the company concluded a business and capital alliance with BML, Inc. The alliance aims to complement testing capabilities and expand order intake, ensure BCP response through mutual cooperation between core laboratories, improve efficiency through mutual use of regional laboratories, and expand ICT Business revenue through mutual utilization of customer bases. Cross-shareholding also secures the stability of the relationship.

ENVALITH's Perspective

In FY2026 (ending March 2026), the company achieved net sales of ¥43,578 million (up 0.6% year on year), operating income of ¥2,498 million (up 7.0%), and net income of ¥2,016 million (up 5.0%), marking three consecutive years of profit growth. ROE improved to 7.9% (from 7.5% in the previous period), approaching the medium-term management target of 8% or higher. Net assets per share also rose to ¥2,577.71 (from ¥2,479.62 in the previous period). Having bottomed out after the fading of COVID-related special demand, the recovery trajectory has become clear, and achievement of the final-year targets (FY2027 (ending March 2027)) of the medium-term management plan "FALCO INNOVATION 2026" (operating income of ¥2,800 million, net income of ¥2,000 million) is within reach.

In FY2026 (ending March 2026), the Dispensing Pharmacy Business posted net sales of ¥15,196 million (down 1.7% year on year) and operating income of ¥674 million (down 17.4%), a significant profit decline. During the period, 6 stores were closed, bringing the total to 101 stores. The revenue environment remains challenging due to external factors such as drug price revisions and dispensing fee revisions, compounded by a decline in the number of prescriptions handled. Establishing a new business model targeting elderly care facilities is an urgent priority, and the recovery of this business will be key to overall company performance in FY2027 (ending March 2027) as well. Close attention should be paid to the progress of structural reforms in the Dispensing Pharmacy Business.

At the Board of Directors meeting on May 12, 2026, a resolution was passed to acquire treasury shares up to 300,000 shares (equivalent to 3.0% of total shares issued) with a total acquisition value of ¥800 million (acquisition period: May 25, 2026 to January 29, 2027). Under the target of a consolidated dividend on equity (DOE) ratio of 5%, the annual dividend forecast for FY2027 (ending March 2027) is ¥128 per share (an increase from ¥125 in the previous period), clearly demonstrating a strengthened stance on shareholder returns. On the other hand, cash and cash equivalents decreased from ¥9,420 million in the previous period to ¥8,267 million, and the skill with which capital allocation balances capital expenditure (acquisition of tangible fixed assets of ¥1,342 million), shareholder returns, and growth investment will be a key point of evaluation going forward.

Growth Strategy

Achieving sustainable growth through business transformation of core operations and concentration of management resources on the growth businesses of genomics and ICT

Promoting business expansion focused on major metropolitan areas and improving operational efficiency through centralized management of test data. In FY2026 (ending March 2026), segment operating profit increased 13.9% year on year to ¥1,816 million, driven by an increase in the number of contracted tests and productivity improvements. Cost structure improvements are progressing steadily.

The number of contracted NIPT (Non-Invasive Prenatal Testing) tests related to perinatal care is increasing along with sales channel expansion, and sales of the in-vitro diagnostic product MSI Test Kit (FALCO) also remain solid. Research and development toward regulatory application and insurance coverage for Hereditary Tumor Panel Testing is underway, and future market expansion is expected.

Promoting expansion of prescription intake from elderly care facilities and standardization/efficiency improvement of dispensing operations through ICT utilization. In FY2026 (ending March 2026), operating profit declined 17.4% year on year, impacted by the closure of 6 stores (bringing the network to 101 stores) and drug price revisions. Establishing a new business model is an urgent priority.

Contracts and installations of Recesta and HAYATE／NEO continued to increase steadily. In FY2026 (ending March 2026), sales increased 18.4% year on year to ¥1,720 million, and operating profit increased 29.7% year on year to ¥458 million. Continuing to invest in new feature development to strengthen service competitiveness.

Continuing to increase dividends with a target consolidated dividend on equity (DOE) of 5%. Annual dividend for FY2026 (ending March 2026) is ¥125 (up from ¥123 in the previous year), with a forecast of ¥128 for FY2027 (ending March 2027). As a subsequent event, the company resolved to acquire treasury shares up to a maximum of 300,000 shares and ¥800 million, strengthening efforts to improve capital efficiency.

Last updated: July 19, 2026