MUROMACHI CHEMICALS INC.
4885・Standard Market・Pharmaceuticals
Pharmaceuticals Business
An active pharmaceutical ingredient (API) total service business providing integrated import, manufacturing, processing, and analysis of APIs
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, current period results) | ¥3,986 million | ¥3,218 million | ↑ |
| Operating profit (full year, current period results) | ¥634 million | ¥474 million | ↑ |
| Segment assets (period-end) | ¥2,182 million | ¥2,092 million | ↑ |
| Net sales YoY change rate | +23.9% | — | ↑ |
| Operating profit YoY change rate | +33.8% | — | ↑ |
Business Details
This segment combines a trading function that procures and sells APIs to domestic pharmaceutical companies, sourced from overseas API manufacturers in China, India, the Netherlands, and elsewhere, with a manufacturing function that performs API synthesis, purification, and foreign-matter removal at the head office plant. The segment maintains its own testing and analysis system based on the Japanese Pharmacopoeia and handles APIs for hyperkalemia treatment drugs, anticoagulants, antiepileptic drugs, and antiherpes virus drugs, among others. It also operates an import sales and storage service for Radioisotope. This is the largest segment, accounting for approximately 51% of consolidated net sales.
Recent Overview
Both imported and in-house manufactured APIs performed well, driving substantial revenue and profit growth; however, an impairment loss of ¥398 million was recorded in the synthesis business
In FY2026 (ending May 2026), sales of imported APIs grew substantially amid expanding demand for existing products that continued from the second quarter, and segment net sales reached ¥3,986 million (up 23.9% year on year). In-house manufactured APIs also performed well, supported by strong sales of a new product launched in the second quarter as well as steady sales of existing products, and operating profit increased substantially to ¥634 million (up 33.8% year on year). However, following a review of the sales outlook for certain contract-processed items in the synthesis business, the company recorded an impairment loss of ¥398 million on fixed assets as an extraordinary loss, which affected net income for the period.
Key Products
Growth Drivers
- Substantial growth in imported API sales driven by expanding demand for existing products (full-year FY2026 (ending May 2026) net sales up 23.9% year on year)
- Strong sales of in-house manufactured APIs, including a new product launched in the second quarter
- Expansion of the range of items handled through sales activities leveraging both trading and manufacturing functions
- Expansion of the procurement network for imported APIs and utilization of alliances with overseas companies
- Future launch of manufactured APIs through development projects and order acquisition leveraging the Pharmaceutical Development Center
Risks
- Risk of concentration in imported API sourcing (country risk related to China, India, and other countries)
- Risk of rising procurement costs for imported APIs due to foreign exchange fluctuations (a foreign exchange loss of ¥5 million was recorded in FY2026 (ending May 2026))
- Risk of deteriorating sales outlook for contract-processed items in the synthesis business (an impairment loss of ¥398 million was recorded in FY2026 (ending May 2026))
- Risk of near-term margin decline due to changes in sales composition (referenced by the company in its FY2027 (ending May 2027) outlook)
- Risk of sales fluctuation due to reversal of temporary demand increases in existing products
- Risk of profit pressure from reallocation of indirect costs following withdrawal from the Health Foods Business
Last updated: August 26, 2025