CREATE MEDIC CO.,LTD.
5187・Standard Market・Precision Instruments
Business
CREATE MEDIC CO., LTD., founded in 1974, is a specialized manufacturer that produces and sells disposable catheters, tubes, and medical devices using silicone rubber as the primary raw material. Domestically, the company operates through three channels: direct sales under its proprietary CLINY brand (56.8% of net sales), OEM sales (9.4%), and overseas sales to China, Europe, and other regions (33.8%). Its product lines span Urology Products, Gastroenterology Products, Surgical Products, Vascular Products, and Nursing & Examination and Other Products. The company has built a global manufacturing and sales network with domestic factories (Hokkaido and Kyushu) and overseas production bases in Dalian, China and Vietnam. It is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
In domestic proprietary sales, the company sells CLINY-brand urology and gastroenterology products directly to medical institutions, forming a high-value-added channel with pricing power. In OEM sales, the company undertakes contract manufacturing of endoscope-related products and other items to secure stable earnings. Overseas sales consist of local sales via the Chinese subsidiary and exports to Europe and Asia. Production is carried out at company-owned plants in Japan and overseas, managing the cost ratio through cost reductions and optimization of production sites. R&D expenses amount to 6.3% of net sales (¥860 million), and the company continues to enrich its new product pipeline to maintain a competitive advantage.
Company Strengths
Since commercializing Japan's first all-silicone Foley catheter in 1978, the company has accumulated over 50 years of development and manufacturing experience. Continued R&D investment of ¥860 million (6.3% of net sales) has been maintained, and in FY2025 (ending December 2025), strong performance of new urology products was the main driver behind own-brand sales of ¥7,734 million (up 7.7% year on year).
The company has built a multi-site production system with domestic plants (Hokkaido and Kyushu) as well as manufacturing subsidiaries in Dalian, China and Vietnam. In FY2025 (ending December 2025), cost of sales ratio declined due to cost reductions from changes in suppliers and optimization of production sites, resulting in operating profit of ¥1,005 million (up 45.1% year on year) and an operating profit margin of 7.4%.
At the end of FY2025 (ending December 2025), total net assets stood at ¥16,332 million, and the equity ratio against total assets of ¥20,143 million remained at a high level. The company held cash and cash equivalents of ¥5,060 million, and maintained a stable financial base even while carrying out repayment of short-term borrowings of ¥800 million, capital expenditures of ¥414 million, dividend payments of ¥314 million, and treasury stock acquisitions of ¥200 million.
ENVALITH's Perspective
Performance Trend
Revenue increased for five consecutive periods, rising from ¥11,699 million in FY2021 to ¥13,618 million in FY2025. Operating profit, after a slump in FY2022 and FY2023, recovered to ¥1,005 million in FY2025. In Q1 of FY2026 (ending December 2026), revenue was maintained at ¥3,364 million (up 4.5% year on year), but external factors—rising raw material costs due to yen depreciation and increased SG&A expenses associated with expansion into India and Southeast Asia—combined to cause a sharp decline in operating profit to ¥140 million (down 36.6% year on year). The gross profit margin also fell from 43.97% in the same period of the previous year to 41.12%. The full-year forecast remains unchanged at revenue of ¥13,960 million and operating profit of ¥1,060 million, but progress in Q1 remained at a low level.
Growth Strategy
Under the Medium-Term Management Plan 2027, the company targets net sales of ¥16,000 million and an operating margin of 8%, pursuing new products, overseas expansion, and M&A.
The company is strengthening domestic proprietary sales centered on the launch of new urology products. In the first quarter of FY2026 (ending March 2026), proprietary sales performed well at ¥1,809 million (up 5.7% year on year), confirming that the new-product effect is directly contributing to sales growth.
As a response to the risk associated with China's centralized procurement system, the company has positioned India and Southeast Asia as new markets and is promoting sales channel expansion. In the first quarter of FY2026 (ending March 2026), expenses for developing new overseas markets contributed to an increase in SG&A expenses, indicating the company is in an upfront investment phase. Realizing sales contribution remains a future challenge.
Production of Gastroenterology Products has been temporarily suspended to comply with the European MDR (Medical Device Regulation), which has affected overseas sales in the first quarter of FY2026 (ending March 2026). Resuming production and sales after completing MDR compliance will be a key catalyst for the recovery of overseas sales.
The company aims to reduce costs by promoting a manufacturing function optimization project and diversifying suppliers to strengthen negotiating power. In the first quarter of FY2026 (ending March 2026), the cost of sales ratio rose due to the impact of yen depreciation, and whether the effects of cost reduction measures can offset this foreign exchange headwind will be key to improving profitability.
The Medium-Term Management Plan positions M&A as one means of growth. The company has issued ¥749 million in convertible bonds with stock acquisition rights and continues to explore investment opportunities using its financial capacity. No specific deals have been disclosed at this time.
Last updated: July 17, 2026