Precision System Science Co., Ltd.
7707・Growth Market・Precision Instruments
Business
Precision System Science Co., Ltd., founded in 1985, is a bio-related equipment manufacturer that develops, manufactures, and sells automated nucleic acid extraction devices, clinical diagnostic devices, reagents, and consumables based on its proprietary Magtration technology. Its main customers include universities, research institutions, clinical testing centers, and pharmaceutical companies, and it supplies products globally through ODM contracts with leading global healthcare companies such as ELITech Group (Italy), Thermo Fisher Scientific (US), QIAGEN (Germany), and PHC (Japan). The company also conducts direct sales through its European subsidiary (Precision System Science Europe GmbH), and its business is organized into four categories: devices, reagents, consumables, and maintenance-related.
Business Model
The core of revenue is ODM sales, with sales to ELITech Group accounting for 55.0% of net sales (¥2,580 million) and sales to PHC accounting for 11.3% (¥530 million) in FY2025 (ended June 2025). Equipment sales act as a catalyst, creating a structure in which recurring revenue from reagents and consumables (¥1,545 million) and maintenance-related services (¥716 million) accumulates in line with the increase in the number of units in operation. Manufacturing is handled by subsidiary NPS Corporation (currently transitioning to a joint venture), which produces reagents and consumables at the Reagent Center in Odate City, Akita Prefecture.
Company Strengths
In 1995, the company commercialized "Magtration Technology," an automated nucleic acid extraction technology utilizing the magnetic particle method, and filed patent applications in Japan, the United States, Europe, and other countries worldwide. This proprietary technology serves as the basis for securing long-term ODM contracts with major global players such as Roche, QIAGEN, and Thermo Fisher, forming a technological barrier to entry.
A commitment contract totaling approximately ¥70,000 million or more exists with ELITech Group through the end of June 2029, with QIAGEN through the end of December 2028, and with PHC through the end of March 2033; these multiple long-term contracts enhance revenue visibility. In FY2025 (ended June 2025), the top two customers combined accounted for 66.3% of net sales.
The business structure generates ongoing purchases of reagents, consumables, and spare parts following equipment sales. In FY2025 (ended June 2025), net sales of reagents and consumables were ¥1,545 million (up 8.1% year on year), and maintenance-related sales were ¥716 million (up 52.7% year on year), both growing in line with the increase in equipment shipments. A recurring revenue base exceeding equipment sales of ¥2,244 million is gradually being formed.
ENVALITH's Perspective
Performance Trend
Revenue bottomed out at ¥5,278 million in FY2023 (ended June 2023) and has continued on a recovery trend since, reaching ¥3,778 million (up 9.1% year-on-year) in the cumulative nine months through the third quarter of FY2026 (ending June 2026). Reagents and consumables led the growth, up 40.2% year-on-year, with notable expansion in recurring revenue. Operating profit turned positive at ¥134 million, versus a loss of ¥83 million in the same period of the prior year, as the earnings structure improved through both reduced SG&A expenses (down 8.2% year-on-year) and expanded gross profit. While upward pressure on raw material costs, logistics costs, and labor costs continues as an external factor, the company is responding through pass-through pricing to sales prices and diversification of procurement sources. It should be noted that the foreign currency translation adjustment account worsened by ¥65 million, and the progression of yen appreciation is putting pressure on comprehensive income.
Growth Strategy
Aiming for profitability in FY2027 (ending June 2027) through PSS platform expansion, deepening the reagent/consumables recurring business, and new glycan analysis business
Expanding overseas sales of ODM products and proprietary brand products based on a long-term supply agreement with a major European ODM customer. In the cumulative nine months of FY2026 (ending June 2026), PSS platform equipment sales grew steadily, up 41.0% year-on-year to ¥1,424 million, functioning as the core initiative of the medium-term management plan.
Working to expand sales of nucleic acid extraction reagents and dedicated consumables in line with the growing cumulative number of installed units, as well as to improve the utilization rate and profit margin of the Odate Reagent Center. In the cumulative nine months of FY2026 (ending June 2026), reagent and consumables sales reached ¥1,535 million, up 40.2% year-on-year, with the sales composition ratio rising to 40.6%, showing notable progress.
Through business restructuring and various cost-reduction measures, SG&A expenses for the cumulative nine months of FY2026 (ending June 2026) were reduced by 8.2% year-on-year to ¥1,023 million. The dissolution of the US subsidiary (Precision System Science USA, Inc.) was completed (March 31, 2026), and the streamlining of unprofitable businesses has also been completed, advancing the concentration of management resources.
Focusing on glycan analysis as a new test marker for cancer and autoimmune diseases, the company aims to commercialize a simple, low-cost glycan analysis system utilizing its proprietary patents and automation technology capable of simultaneously detecting multiple items and multiple samples with a single detector. Currently in the development stage, with sales contribution expected in a future phase.
Last updated: July 17, 2026