PhoenixBio Co.,Ltd.
6190・Growth Market・Services
Business
PhoenixBio Co., Ltd. is a single-segment company that provides contract testing services and product sales in the preclinical stage of pharmaceutical development, centered on its proprietary "PXB Mouse" technology, in which over 70% of the mouse liver is replaced with human hepatocytes. Its main services consist of three pillars: DMPK/Tox testing (drug metabolism, pharmacokinetics, and safety), hepatitis testing (drug efficacy evaluation), and sales of fresh human hepatocytes "PXB-cells". Its main customers are pharmaceutical companies and CROs both in Japan and overseas, with the U.S. market accounting for the majority of sales. The company listed on the Tokyo Stock Exchange Mothers market (now Growth Market) in 2016. Headquartered in Higashi-Hiroshima City, Hiroshima Prefecture, the company is expanding into the North American market through its U.S. subsidiary, PhoenixBio USA Corporation.
Business Model
The company consistently produces over 4,000 PXB mice annually, generating revenue through two forms: product sales (PXB Mouse Sales and PXB-cells Sales) and Contract Testing Services. In FY2026 (ending March 2026), sales composition was ¥1,209,942 thousand (111.9% year-on-year) for product sales and ¥355,590 thousand (77.3% year-on-year) for Contract Testing Services. As the proportion of product sales increases, production efficiency improves and fixed costs are better absorbed. The major customer Alnylam Pharmaceuticals, Inc. accounts for 37.8% of net sales.
Company Strengths
PXB Mouse is a registered trademark in Japan, the US, Canada, Europe, China, and other regions. The cDNA-uPA/SCID mice used in production have obtained international patents through joint development with the Tokyo Metropolitan Institute of Medical Science and Chugai Pharmaceutical. The company has established a stable production system of over 4,000 mice annually, forming a technical entry barrier that competitors cannot easily replicate in a short period.
While the conventional hepatitis (pharmacology) field has been shrinking, sales in the safety-related field for nucleic acid drugs and gene therapy expanded from ¥246 million in the previous fiscal year to over ¥377 million in the current fiscal year (¥1,499,123 thousand, up 102.1% year on year). The shift toward the safety-related field, which covers nearly all drug candidate substances, has broadened the customer base and improved revenue stability.
The dissolution and liquidation of the overseas production subsidiary KMT Hepatech, Inc. (liquidation completed in October 2025) structurally reduced cost of sales and fixed costs. In FY2026 (ending March 2026), the company achieved its first operating profit in two fiscal years (operating income of ¥83 million). The improvement in cost structure has taken hold, and the company has transformed into a business that can maintain profitability even at the same level of net sales.
ENVALITH's Perspective
Performance Trend
Revenue for FY2026 (ending March 2026) remained flat at ¥1,566 million (up 1.6% year on year). While overseas orders struggled to grow due to the external factor of pharmaceutical companies in the US market curbing their development budgets, an increase in domestic PXB Mouse Sales provided support. On the earnings side, cost of sales reduction from the liquidation of KMT Hepatech and a reduction in SG&A expenses (R&D expenses of ¥191 million, down from ¥274 million in the previous period) proved effective, resulting in a return to profit at every stage: operating profit of ¥82 million, ordinary profit of ¥131 million, and net income of ¥125 million. Looking at the five-period trend, deterioration continued from the FY2023 operating profit peak of ¥508 million through FY2025, but structural improvement was achieved in FY2026. The equity ratio improved to 70.2% (from 59.1% in the previous period), and financial soundness has also recovered.
Growth Strategy
Diversification of earnings through capturing demand for nucleic acid therapeutics and gene therapy, and expansion of PXB-cells Sales in the U.S. market
The usefulness of PXB Mice in the development of nucleic acid therapeutics and gene therapies, which are emerging as new drug discovery modalities, has been recognized, and inquiries from new customers have been trending upward. The company will leverage its existing technological advantages to expand Contract Testing Services addressing new modalities, aiming to diversify its customer base.
Against the backdrop of growing demand for human hepatocytes (PXB-cells) in the early stages of drug discovery, the company plans to establish a supply and sales framework in the U.S. In FY2027 (ending March 2027), the company will advance its U.S. expansion while factoring in increased expenses such as outsourcing costs, with the aim of nurturing this business into a third pillar of earnings following Contract Testing Services and PXB Mouse Sales. The exchange rate is assumed at 155 yen to the U.S. dollar.
In FY2026 (ending March 2026), sales in the domestic safety assessment field expanded sharply to ¥377 million (from ¥247 million in the prior period), and domestic orders received also increased substantially to ¥431 million (from ¥259 million in the prior period). The company will continue to strengthen its domestic customer base as a buffer against uncertainty in the U.S. market, aiming to expand PXB Mouse Sales to existing customers.
Last updated: July 19, 2026