TOHO HOLDINGS CO.,LTD.
8129・Prime Market・Wholesale Trade
Pharmaceutical Wholesale Business
Toho HD's core business. Wholesale supply of pharmaceuticals and medical devices to hospitals, pharmacies, and other facilities.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (including intersegment internal sales) | ¥1,494,868 million | ¥1,463,520 million | ↑ |
| Sales to external customers | ¥1,444,698 million | ¥1,415,289 million | ↑ |
| Segment profit (operating income) | ¥16,820 million | ¥19,033 million | ↓ |
| Segment assets | ¥597,950 million | ¥585,328 million | ↑ |
| Depreciation and amortization | ¥2,680 million | ¥2,733 million | ↓ |
| Increase in property, plant and equipment and intangible assets | ¥9,375 million | ¥3,585 million | ↑ |
| Investment in equity-method affiliates | ¥2,032 million | ¥1,893 million | ↑ |
Business Details
Centered on four consolidated subsidiaries including Toho Yakuhin Co., Ltd. and Kyushu Toho Co., Ltd., this segment procures pharmaceuticals, narcotics, testing reagents, and medical devices from pharmaceutical companies and others, and sells them to hospitals, clinics, dispensing pharmacies, and other customers. It is the core segment, accounting for approximately 96% of group consolidated revenue (on an external customer revenue basis). The segment is also promoting expanded sales of specialty pharmaceuticals and wholesaler-exclusive products, productivity improvements through the use of DX tools, and the development of customer support businesses.
Recent Overview
Net sales rose 2.1% year on year, but segment profit fell 11.6% due to higher procurement costs, resulting in deteriorating profitability.
In the Pharmaceutical Wholesale Business for FY2026 (ending March 2026), sales grew in anticabruary drugs, specialty pharmaceuticals, diabetes treatment drugs, and shingles vaccines, resulting in net sales of ¥1,494,868 million (up 2.1% year on year). However, segment profit was limited to ¥16,820 million (down 11.6% year on year) due to the impact of rising pharmaceutical procurement costs. In terms of measures, the company worked on clarifying the roles of sales and delivery functions, improving productivity through the introduction of digital tools, promoting item-by-item price negotiations, and visualizing and optimizing distribution costs. The company also strengthened its logistics and quality systems, including the start of construction on the integrated logistics center "TBC Tokai" (scheduled to begin operations in FY2027), obtaining new ISO9001 certification, and enhancing internal GDP training. Additionally, the provision for loss related to the Antimonopoly Act (¥4,849 million at the end of the prior period) was resolved during the current period.
Key Products
Growth Drivers
- Expanding sales of specialty pharmaceuticals and wholesaler-exclusive products (anticancer drugs, diabetes treatment drugs, shingles vaccines, etc.)
- Development of the testing reagent market through pharmaceutical MS leveraging the integration of pharmaceuticals and testing reagents
- Establishing logistics reform and competitive advantage through the integrated logistics center "TBC Tokai," scheduled to begin operations in fiscal year 2027
- Building a specialty product full-line service through the operation of the Haneda Packaging Center (Secondary Pharmaceutical Packaging Facility) (contract operations scheduled to begin within FY2026)
- Strengthening capabilities in the specialty domain through the home delivery service "L1MON" and investments in Ishin Pharma and Serve BioPharma, among others
- Enhancing added value through expansion of the customer support business (LXMATE HeLios cloud, EveryPick, etc.)
- Creating new businesses through investment in drug discovery and healthcare DX startups via the CVC fund "TOHO Ventures"
- Establishing an appropriate delivery system through advanced management functions and visualization of distribution costs enabled by DX
Risks
- Downward pressure on pharmaceutical market prices due to annual drug price revisions and mid-year revisions (a mid-year revision covering 53% of all items was implemented in April 2025, with another drug price revision scheduled for April 2026)
- Risk of deteriorating profitability due to further increases in procurement costs from pharmaceutical manufacturers
- Impact on sales and profit from the continued decline in demand for COVID-19-related products
- Changes in the product mix due to accelerated switching to generic drugs following the introduction of selective medical care treatment for long-listed products
- Risk of declining profitability due to increases in selling, general and administrative expenses (personnel costs, logistics costs, etc.)
- Impact on business partners due to the continued deterioration of the operating environment for medical institutions, which remains challenging
- Risk of cash outflows and delayed startup associated with large-scale capital investments such as "TBC Tokai"
Last updated: June 24, 2026