KOA SHOJI HOLDINGS CO.,LTD.

Business Details

The API Sales Business, operated by Koa Shoji Co., Ltd., functions as a specialty trading company that imports active pharmaceutical ingredients (APIs) from over 90 overseas suppliers across 10 countries worldwide and sells them to more than 100 domestic pharmaceutical companies. With generic drug manufacturers as its main customers, its strengths lie in proposal and support activities utilizing its in-house analytical capabilities from the customer's R&D stage, quality improvement proposals, and provision of new manufacturing process technology. As a long-term strategy, the company has set forth a transition from "API import trading company" to "pharmaceutical specialty trading company," and is also engaged in importing and selling overseas pharmaceuticals and license-in activities.

Recent Overview

Allergy, CNS, and sensory organ drugs remained solid; external customer sales up 4.4% year-on-year

In the cumulative nine months of FY2026 (ending March 2026) (July 2025 to March 2026), APIs for "oncology drugs" and "other metabolic drugs" decreased due to the impact of customer purchase timing, among other factors, while sales of APIs for "allergy medications," "central nervous system drugs," and "sensory organ drugs" remained solid. Contributing factors included progress in market penetration of recently launched products and increased transaction volume associated with the expanding volume share of generic drugs, resulting in external customer sales of ¥11,310 million (up 4.4% year-on-year) and segment profit of ¥2,588 million (up 8.3% year-on-year). In addition, the company is proceeding with consideration of renewing the Yokohama Pharmaceutical Analysis Center to address aging facilities.

Key Products

Growth Drivers

• Continued increase in API demand associated with the expanding volume share of generic drugs
• Expansion of transaction volume through market penetration of recently launched products (allergy medications, central nervous system drugs, sensory organ drugs, etc.)
• Acceleration of generic drug demand due to the increase in the selected medical care burden amount for long-listed products (to one-half of the price difference from June 2026)
• Opportunity to expand supply scope against the backdrop of drug pricing system changes for authorized generics (AG) (newly listed products priced the same as originator products from October 2026)
• Competitive advantage through a multi-sourcing, stable procurement system leveraging an overseas supplier network of over 90 companies across 10 countries worldwide
• Strengthening of analysis and proposal functions through renewal of the Yokohama Pharmaceutical Analysis Center, supporting increased transaction volume

Risks

• Risk of profit pressure from foreign exchange fluctuations (rising procurement costs amid yen depreciation)
• Risk of quarterly sales fluctuations due to customer purchase timing and inventory adjustments (as seen in oncology drugs and metabolic drugs)
• Risk of logistics delays and resource price increases due to U.S. trade policy trends and intensifying tensions in the Middle East
• Impact on API procurement from supply instability among overseas suppliers and geopolitical risk
• Impact on API demand and pricing from drug price revisions (price reductions for generic drugs)
• Impact on transaction volume and pricing from entry of competitors