ENVALITH
株式会社ステムセル研究所 logo

StemCell Institute Inc.

7096・Growth Market・Services

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株式会社ステムセル研究所 logo
StemCell Institute Inc.7096

Business

STEM CELL Institute Co., Ltd. is Japan's largest private cord blood bank, founded in 1999. The company provides long-term cryopreservation services for cord blood and umbilical cord tissue collected at childbirth, preparing these samples for future use in regenerative medicine and cell therapy. Its primary customers are pregnant women and their families, and it acquires customers through a collaborative network with obstetrics and gynecology facilities. As of the end of March 2026, the cumulative number of stored samples exceeded 110,000, accounting for the majority of the domestic private bank market. The company operates its own Cell Processing Center (CPC) and Cell Custody Center (CCC) in Tokyo and Yokohama. Through its subsidiaries STEMCELL INNOVATIONS PTE. LTD. (Singapore) and Milcare Co., Ltd., the company is also promoting expansion into Southeast Asia and related new businesses.

Business Model

Revenue is composed of three categories: "technology fees" (cell separation, testing, and registration fees), "storage fees" (recurring annual revenue), and "other" (renewal fees, etc.). The breakdown for FY2026 (ending March 2026) is: technology fees ¥2,226,568 million, storage fees ¥526,077 million, and other ¥58,698 million (all converted to millions of yen from the original figures in thousands of yen). Storage fees are recorded as advance payments at the time of contract and recognized each period according to the storage duration, constituting stock-type revenue that expands steadily as the cumulative number of stored samples accumulates.

Company Strengths

According to a report by the Ministry of Health, Labour and Welfare (as of March 31, 2025), of the total 95,821 stored samples held by the two private banks registered to handle cord blood, the Company's stored samples numbered 95,005, accounting for over 99%. The Company is also the sole domestic private operator in the umbilical cord tissue storage business, establishing a monopolistic position with no competitors.

The Company has held and maintained ISO9001 certification since 2011, and obtained the international certification standard AABB in 2019. It holds a manufacturing license for specified cell processed products at both its Tokyo CPC and Yokohama CPC facilities, following on-site inspections by the PMDA. These certifications and licenses function as barriers to entry and substantiate the Company's reliability in terms of quality.

As of the end of March 2026, the cumulative number of stored samples totaled over 110,000, comprising 102,040 cord blood samples and 12,135 umbilical cord tissue samples. Storage fees are recognized as recurring stock-type revenue booked each period over the contract term, forming a structure in which storage fee income increases progressively as the number of stored samples accumulates. Storage fee revenue for FY2026 (ending March 2026) reached ¥526,077 thousand.

ENVALITH's Perspective

In FY2026 (ending March 2026), revenue reached a record high of ¥2,811 million, while operating profit fell sharply to ¥203 million (operating margin of 7.2%) from ¥419 million in the previous period. The main causes were business launch costs at the Singapore subsidiary, increased personnel expenses from staff expansion and wage revisions, and rising raw material prices. The forecast for FY2027 (ending March 2027) anticipates a further decline in operating profit to ¥100 million (down 50.7% year on year), and it should be noted that the up-front investment phase is expected to continue for the time being.

Cash flow from operating activities was only ¥73 million, far below the ¥744 million spent on investing activities (Singapore facility, domestic equipment, core systems, and investment securities). Financing activities were supported by ¥407 million in capital contributions from non-controlling shareholders, but cash balances declined from ¥3,238 million at the start of the period to ¥2,834 million at the end. Until the Southeast Asia business becomes profitable, the pace at which cash on hand is consumed is a metric investors should watch closely.

The Singapore CPC and CCC facilities are scheduled for completion and handover in May 2026, with operations planned to commence in the middle of FY2027 (ending March 2027) following acquisition of the MOH license. As for the market environment, external estimates suggest the Southeast Asian umbilical cord and cord blood storage market will grow at an average annual rate of approximately 16.8% through 2032, providing a tailwind. However, the risk of delays in obtaining the license, the behavior of local competitors, and the feasibility of achieving the targeted 50% market share in Singapore and Indonesia remain unverified at this stage. Early profitability in the overseas business is essential to achieving the medium-term management plan (FY2030 (ending March 2030): consolidated revenue of ¥5,500 million, operating profit of ¥1,000 million).

Growth Strategy

Four pillars of growth: domestic HOPECELL penetration, Southeast Asia business development, expansion of clinical applications, and core system replacement

Market penetration of the new storage plan "HOPECELL," launched in November 2024, has been progressing smoothly, with the combined total number of stored samples for umbilical cord and cord blood growing significantly. The "5-Year Free Storage Fee Campaign" will continue through June 2026 to increase the number of information requests and the contract conversion rate. The future target is an annual storage volume of 20,000 samples (approximately 2.5 times the current level, equivalent to 3% of the birth rate).

Following the completion and handover of the CPC and CCC of STEMCELL INNOVATIONS PTE. LTD. by May 2026, the company plans to obtain business approval from Singapore's Ministry of Health (MOH) and commence operations in the middle of FY2027 (ending March 2027). The company aims to capture a 50% market share in the future in Singapore (estimated market of 6,000 cases/year) and Indonesia (estimated market of 3,000 cases/year), with plans to expand across Southeast Asia in the medium term.

The company continues to support clinical research at Osaka Metropolitan University (ASD), Kochi University (cerebral palsy), and Duke University in the United States. It is also advancing the feasibility study of the Autologous Cord Blood-Derived iPS Cell Manufacturing and Storage Service (Joint Research) with iPS Portal, expanding the use of umbilical cord-derived culture supernatant in the cosmetic and elective medical fields, and promoting joint research on eye disease treatment with the International University of Health and Welfare (contract concluded in December 2025), thereby expanding opportunities for utilizing stored cells.

The company plans to renew its aging core system during FY2027 (ending March 2027). ¥203 million has already been recorded as an intangible fixed asset (construction in progress for software), and preparations are underway. The system renewal aims to improve operational efficiency and enhance customer management sophistication, strengthening the company's capacity to handle the increasing volume of stored samples.

Last updated: July 19, 2026