CellSource Co., Ltd.
4880・Standard Market・Pharmaceuticals
Business
CellSource Co., Ltd. was established in November 2015 and is a company specializing in the Regenerative Medicine-Related Business (listed on the TSE Prime Market). The company was founded in response to the enforcement of the "Act on Safety of Regenerative Medicine," and provides cell/tissue processing contract and storage services on commission from medical institutions, including PFC-FD (blood-derived), fat-derived stem cells, and FatBank. In addition, the company offers Medical Institution Support Services such as regulatory compliance support under regenerative medicine-related laws and management support, as well as Medical Device Sales and cosmetics sales. Its main customers are medical institutions such as orthopedic clinics, plastic surgery clinics, and obstetrics/gynecology clinics, with the number of affiliated medical institutions reaching 2,102 as of the end of FY2025 (ending October 2025). The company's purpose is "Change Our Future," and its medium- to long-term vision is "Zero people suffering from knee pain."
Business Model
The main revenue source is contract processing services for cell and tissue samples from medical institutions (65.9% of net sales in FY2025 (ending October 2025), ¥2,446 million). Leveraging proprietary technologies including the patented PFC-FD manufacturing method, the company receives blood and fat samples collected by medical institutions from patients, processes and stores them, and earns compensation in return. In addition to this, the company combines support for preparing application documents under the Act on the Safety of Regenerative Medicine (Medical Institution Support Services), Medical Device Sales, and Cosmetics Sales and Other, building multifaceted transactional relationships with partner medical institutions.
Company Strengths
As of the end of the fiscal period ended October 2025, the number of affiliated medical institutions stood at 2,102 (up 147 from the previous period-end). The network has expanded steadily since founding, with cumulative contract processing volume exceeding 90,000 cases. This extensive network serves as a barrier to competitive entry and also forms the foundation for accumulating data and evidence.
The company obtained a patent in August 2018 for the PFC freeze-dry method, which processes platelet-rich plasma (PRP) from blood and enables long-term storage. The ability to store the product at room temperature for extended periods enhances convenience for medical institutions and serves as a key differentiator from competitors.
As of the end of the fiscal period ended October 2025, net assets stood at ¥6,016 million, cash and cash equivalents at ¥4,711 million, and the equity ratio at 84.0%. With no major capital expenditures planned and an overdraft facility secured with financial institutions, the company retains ample capacity for growth investment.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥4,274 million in FY2022 and has continued to decline since, reaching ¥1,775 million (down 2.5% year-on-year) for the interim period of FY2026/10 (fiscal year ending October 2026). Meanwhile, a substantial reduction in selling, general and administrative expenses (down 8.5% year-on-year to ¥919 million) improved the gross profit margin, and interim operating profit recovered sharply to ¥125 million (up 636.3% year-on-year). The operating margin improved to 7.2% (Q2 standalone). However, the full-year forecast remains unchanged at revenue of ¥3,418 million and an operating loss of ¥170 million, with strategic investment expenses for R&D and consumer business development expected to be concentrated in the second half. The cash balance stands at ¥4,787 million, reflecting a solid financial foundation, and there are no notes regarding going concern assumptions.
Growth Strategy
Structural transformation toward an issue-solving business model centered on cell processing technology, alongside cultivation of new business areas
The number of affiliated medical institutions expanded steadily to 2,183 facilities as of the end of Q2 of FY2026 (ending March 2026) (up 81 facilities from the previous fiscal year-end). Meanwhile, the number of contracted cases per medical institution has been sluggish, and improving the utilization rate of existing affiliated institutions is key to earnings recovery. The Company aims to improve utilization rates by strengthening medical institution support measures.
Under the vision of "Zero people suffering from knee pain," the Company is promoting the penetration of a hybrid-type service that combines cell processing contracting in the orthopedics field with medical institution support. It is also strengthening support for introduction into the self-pay medical treatment field, aiming to move away from dependence on specific medical institutions.
Support services for document preparation related to the Act on Securing Safety of Regenerative Medicine and management support services grew rapidly, up 72.7% year on year to ¥108 million in the first half of FY2026 (ending March 2026). The Company aims to accelerate the cultivation of this business as a stable revenue source that does not depend on contract processing, by capturing needs related to regulatory compliance.
In the first half of FY2026 (ending March 2026), the Company launched the sleep beauty brand "PAJUU" and released the Sleep Conditioning Wear. It aims to develop a new revenue source through a BtoC model, but the earnings contribution is currently limited, and the business remains in a cultivation stage.
The Company continues strategic investment in expansion to capture inbound demand and in R&D to advance regenerative medicine technology. These are positioned as advance investments aimed at creating future added value, and a temporary operating loss is expected for the full fiscal year of FY2026 (ending March 2026).
Last updated: July 17, 2026