KOA SHOJI HOLDINGS CO.,LTD.
9273・Prime Market・Wholesale Trade
Business
Koa Shoji Holdings is a pharmaceutical group comprising three consolidated subsidiaries under a holding company structure. It consists of two segments: the API Sales Business, in which Koa Shoji Co., Ltd. imports active pharmaceutical ingredients (APIs) from more than 90 overseas suppliers across 10 countries worldwide and supplies them to over 100 domestic pharmaceutical companies; and the Pharmaceutical Manufacturing and Sales Business, in which Koa Isei Co., Ltd. and Koa Biotech Bay Co., Ltd. manufacture and sell injectable formulations—centered on Prefilled Syringe Formulations—both in-house and on a contract manufacturing basis. Benefiting from the national policy tailwind of expanding generic drug adoption, the group has built an integrated supply system spanning stable API procurement through to formulation manufacturing. Its main customers are domestic generic drug manufacturers, with its largest customer, Fuso Pharmaceutical Industries, Ltd., accounting for 21.6% of sales.
Business Model
In the API Sales Business, the company adds quality assurance—provided by its in-house analysis functions (such as the Osaka Pharmaceutical Analysis Center)—to APIs imported from overseas suppliers, then sells them to domestic pharmaceutical companies, earning a trading margin. In the Pharmaceutical Manufacturing and Sales Business, in addition to manufacturing and selling its own in-house developed generic drugs, the company undertakes contract manufacturing (CMO/CDMO) for major domestic manufacturers, earning a manufacturing margin. Through group synergies between the two businesses, the company maintains a system capable of providing integrated value, from API procurement through to formulation manufacturing.
Company Strengths
Koa Shoji Co., Ltd. has built trading relationships with over 90 overseas suppliers in 10 countries worldwide since its founding. It has achieved stable procurement and price competitiveness through a multi-supplier purchasing system, and maintains a supply base covering over 100 domestic pharmaceutical companies. Its ownership of in-house analytical functions (such as the Osaka Pharmaceutical Analysis Center) allows it to internalize quality assurance functions despite being a trading company, which serves as a differentiating factor.
Koa Isei Co., Ltd. newly established the Zao Plant in 2016, possessing advanced containment facilities specialized in the manufacture of highly pharmacologically active injectable drugs such as anticancer agents. It has manufacturing capability for Prefilled Syringe Formulations, and achieved a segment profit margin of 24.7% in the Pharmaceutical Manufacturing and Sales Business for FY2025 (ended June 2025). High technology and capital investment barriers function as a barrier to entry.
Revenue grew for 5 consecutive periods, from ¥17,816 million in FY2021 (ended June 2021) to ¥23,269 million in FY2025 (ended June 2025). Operating profit expanded from ¥3,377 million to ¥5,355 million over the same period. As of the end of FY2025 (ended June 2025), the equity ratio stood at 77.9% and cash and cash equivalents totaled ¥14,739 million, indicating high financial soundness, with the financial capacity to fund the approximately ¥6,500 million investment in the Zao Second Plant through internal funds and borrowings.
ENVALITH's Perspective
Performance Trend
For the cumulative nine months of 3Q FY2026 (ending June 2026), net sales were ¥18,334 million (up 4.0% year on year), operating profit was ¥4,580 million (up 4.5%), ordinary profit was ¥4,551 million (up 3.0%), and quarterly net profit attributable to owners of the parent was ¥3,052 million (up 3.1%). Against the full-year forecast (net sales of ¥25,700 million, operating profit of ¥5,430 million, net profit of ¥3,640 million), the cumulative 3Q progress rates were 71.3%, 84.3%, and 83.8% respectively, showing a high progress rate on the profit side. As an external factor, the occurrence of a foreign exchange loss (¥55,007 thousand) suppressed the growth of ordinary profit relative to operating profit. In terms of financial soundness, total assets stood at ¥38,039 million and the equity ratio was maintained at a healthy 80.2%. There has been no change to the full-year earnings forecast, which remains unchanged from the figures announced on August 8, 2025.
Growth Strategy
Aiming for FY2030 net sales of ¥40.0 billion and operating profit of ¥8.0 billion, the company is advancing its transformation into a specialized pharmaceutical trading company and a leading domestic manufacturer of injectable formulations
The second plant under construction in Zao, Yamagata Prefecture is progressing on schedule, targeting completion in June 2026 and start of operations in July 2027. Construction in progress has reached ¥4,716 million; upon start-up, production capacity for highly potent injectable formulations, Prefilled Syringe Formulations, and other products will be substantially expanded, aiming to increase CDMO orders and sales to external customers.
In preparation for the pharmaceutical manufacturing license renewal scheduled for December 2026, the company is advancing measures to ensure pharmaceutical quality and safety and to strengthen its stable supply system. Reliable execution of the license renewal is a prerequisite for maintaining continued stable supply of existing products and preserving customer trust.
Renewal of the Yokohama Pharmaceutical Analysis Center is under consideration to address aging facilities and increasing transaction volumes. By strengthening analytical and quality evaluation functions, the company aims to enhance its proposal capabilities to pharmaceutical company customers and expand the range of new API items handled, thereby maintaining and strengthening competitive advantage in the API Sales Business.
Against the backdrop of an increase in the selected medical care burden for long-listed products (from June 2026, one-half of the price difference) and changes to the Authorized Generic (AG) drug pricing system (from October 2026), demand for generic drugs is expected to expand. Market penetration of allergy medications, central nervous system drugs, sensory organ drugs, and other products launched in recent years is progressing, leading to a continued increase in transaction volumes.
A medium-term management plan through FY2028 (ending June 2028) has been formulated to achieve the financial targets of the 2030 long-term business plan. The API Sales Business is being transformed into a "specialized pharmaceutical trading company," while the Pharmaceutical Manufacturing and Sales Business is being transformed into a "leading domestic manufacturer of distinctive injectable formulations." Full-year forecasts for FY2026 (ending June 2026) (net sales of ¥25,700 million and operating profit of ¥5,430 million) represent year-on-year increases of 10.4% and 1.4%, respectively.
Last updated: July 17, 2026