07.20.22
Rank: #20 (Last year: #20)
¥703.3 Billion ($5.77 Billion)
Prior Fiscal: ¥613.8 Billion
Percentage Change: +14.6%
R&D Expenditure: ¥519M
Best FY22 Quarter: Q4 ¥179.8B
Latest Quarter: Q4 (2022) ¥179.8B
No. of Employees: 28,294 (total)
Global Headquarters: Tokyo, Japan
KEY EXECUTIVES:
Toshiaki Takagi, Board Chairman
Shinjiro Sato, President and CEO
Hikaru Samejima, President, Medical Care Solutions Company
Toshihiko Osada, President, Cardiac and Vascular Company; Division President, Interventional Systems Division, Cardiac and Vascular Company
Antoinette Gawin, President, Blood and Cell Technologies Company; President and CEO, Terumo BCT Holding Corp.
Fumihisa Hirose, General Manager, Strategic Planning Dept.; Chief Technology Officer, R&D Division
The plotline seems hauntingly familiar: A deadly pandemic on the wane, a global supply chain on the fritz, political extremism on the rise, and hyperinflation on the move.
The year? 1921.
World War I had ended three years prior but planetary peace and harmony remained elusive amid growing social, political, and economic unrest. The Soviets toppled Georgia’s government as Ireland fought for its freedom from British rule and communism gained ground in China, Italy, Spain, and South Africa.
America’s economy was barely alive, having been felled by high unemployment (11.7%), a bear market (down 50%), and declining corporate profits. Europe’s fiscal health wasn’t much better—exorbitant war debts and hyperinflation sowed economic misery in both Austria and Germany, and a post-war shipbuilding slowdown effectively torpedoed Britain’s gross domestic product (it fell 22% in nine months).
Japan, meanwhile, was running short on thermometers. The country usually imported these instruments from Germany, the United Kingdom, and United States, but the war had severed the entire flow of goods and services. Further complicating matters was the financial instability of Japan’s only thermometer manufacturer, Takeuchi Terumo Works.
Realizing the critical need for domestic production, renowned physician/bacteriologist Baron Shibasaburo Kitasato and several scientists founded the Red Line Thermometers Corporation. Born on Sept. 17, 1921, the fledgling firm introduced its first clinical thermometer—Jintan Taionkei—to the Japanese market just five months later.
“Our goal in establishing the company is to manufacture and sell a wide variety of clinical and other thermometers and scientific instruments,” Red Line’s charter states. “Recently, we have realized that the development and spread of the concept of individuals taking care of their own health has led to increased demand for thermometers in Japan as well as in the developed nations of Europe and the United States, upon whom we have thus far depended to supply us with these items. But as the balance between supply and demand shifts, we are fast reaching a time when the present situation will reverse and there will be increased demand outside of Japan for products manufactured in Japan. This will inevitably lead to increased exports of our country’s products. Thus, we are supremely confident that our company’s future prospects are highly promising, that our profit will be great, and our business will thrive far into the future.”
Far, indeed. A century after its founding, Red Line Thermometers—a.k.a., Terumo Corporation (the name changed in 1974)—not only is thriving but driving therapeutic innovation as well.
In FY22 (year ended March 31, 2022), Terumo grew sales 14.6% to ¥703.3 billion. Gross profit ballooned 13.1% to ¥369.3 billion, and operating profit mushroomed 17.9% to ¥115.9 billion, according to company financial data.
Terumo’s stellar earnings in its most recent fiscal year was driven mainly by solid growth in its three business segments. Medical Care Solutions (formerly the General Hospital Company) proceeds benefitted from recovering demand for syringes and infusion-related products in Japan as well as higher sales of infusion and syringe pumps. Revenue in this segment rose 5.6% to ¥185.3 billion, with the bulk of sales derived domestically (¥142.7 billion).
Certainly, fostering the segment’s FY22 profit was the domestic launch of the Dexcom G6 continuous glucose monitoring (CGM) system, and partnerships with both Glooko and Diabeloop.
The latter union aims to supply Europe with automatic insulin delivery (AID) solutions while the Glooko pairing enhances diabetes data sharing solutions.
Terumo debuted the Dexcom G6 CGM system in late July 2021 (the firm has exclusive distribution rights in Japan). The product allows for real-time glucose monitoring through a small, wearable sensor and transmitter that measures and automatically sends glucose level readings wirelessly to a smart device or receiver every five minutes. The constant data flow enables users to track their glucose levels throughout the day and determine whether they are within their target range. The system also displays trend arrows to show the speed and direction glucose levels are heading.
In addition, the Dexcom G6 CGM system features customizable alerts to proactively warn patients when their glucose levels are out of range and an “Urgent Low-Soon (ULS) Alert” that warns users 20 minutes before a severe hypoglycemic event, giving them time to take appropriate action.
“The launch of Dexcom G6 CGM System in Japan is an important milestone for Terumo as we promise to commit to contribute to diabetes care comprehensively,” Yoshiya Kikawa, Terumo’s general manager DM and Consumer Healthcare Group, said in prepared remarks. “With our product lineup of CGM blood glucose system, and Japan’s first tubing-free insulin patch pump, we will continue to strive to improve the quality of life for people living with diabetes.”
Terumo also continued its quest to improve blood and plasma supplies. During fiscal 2022, its company’s Blood and Cell Technologies business forged several partnerships, launched new software, and received regulatory approvals for two new products.
Terumo paired with CSL Plasma in April 2021 to deliver a new plasma collection platform at CSL’s U.S. collection centers, joined the Process Analytical Technology Consortium in June to help streamline cell and gene therapy manufacturing, and teamed up with BioCentriq in October (2021) to expand its cell and gene therapy market footprint.
The BioCentriq collaboration involves equipping the company’s laboratories with Terumo’s solutions, including its Quantum Cell Expansion and Finia Fill and Finish systems. Quantum is a functionally closed, automated cell expansion system enabling process control for various adherent cells, suspension cells, viral vectors, and exosomes. The Finia System automates the final steps of cell and gene manufacturing.
Terumo upgraded the Finia System last fall, adding automated procedure configuration, enhanced reporting, and offline mode to its capabilities. The offline mode allows the system to run without network connectivity and removes any risk of delay from IT complications. Its Cell Processing Application can manage multiple Finia devices from a central server, supporting cGMP compliance with user authentication, electronic batch reporting, and workflow configuration.
The two regulatory approvals Terumo scored for its Blood and Cell Technologies business this past fiscal year occurred seven months apart. Health Canada greenlighted the Mirasol Pathogen Reduction Technology System in mid-August; it is routinely used at more than 100 blood centers in over 20 countries in Europe, the Middle East, Africa, Asia, and Latin America. Employing riboflavin (vitamin B2) and ultraviolet light, Mirasol is designed to reduce the pathogen load of various disease-causing agents such as viruses, parasites, and bacteria in blood products before transfusions. Mirasol also inactivates white blood cells to help reduce certain transfusion reactions.
Twenty-nine weeks after Health Canada’s Mirasol approval, the U.S. Food and Drug Administration cleared Terumo’s next-generation automated plasma collection system. Designed to collect plasma in 35 minutes or less, the Rika system features an advanced control system to enhance donor safety; it monitors the collection process and guides the operator through alerts and visual cues, while the platform itself makes automatic adjustments during each procedure.
The Blood and Cell Technology segment’s mix of partnerships and new products helped boost FY22 sales 10.1% to ¥120.6 billion. Blood center product sales in Japan fell 1.2% to ¥12 billion due to lower demand for blood bags. Overseas revenue rose 11.5% to ¥108.5 billion, as demand recovered for whole blood collection, automated blood processing products, and therapeutic apheresis systems in Europe and North America. Proceeds in China surged 30% on improved sales of blood component collection systems for blood centers.
Cardiac and Vascular revenue followed a similar trajectory in FY22, sans a domestic loss. Although Japan’s moderate COVID-19 recovery limited profits at home, robust carotid artery stents sales lifted sales 1.9% to ¥51.1 billion. Overseas proceeds skyrocketed 24.3% to ¥345.9 billion, driven by strong demand for interventional and neurovascular solutions.
Overall, the Cardiac and Vascular segment grew sales 21% in fiscal 2022, generating ¥397.1 billion—more than double Blood and Cell Technologies’ total. Like its segment siblings, Cardiac and Vascular profited from a mix of strategic alliances and expanded product offerings during the year, including:
¥703.3 Billion ($5.77 Billion)
Prior Fiscal: ¥613.8 Billion
Percentage Change: +14.6%
R&D Expenditure: ¥519M
Best FY22 Quarter: Q4 ¥179.8B
Latest Quarter: Q4 (2022) ¥179.8B
No. of Employees: 28,294 (total)
Global Headquarters: Tokyo, Japan
KEY EXECUTIVES:
Toshiaki Takagi, Board Chairman
Shinjiro Sato, President and CEO
Hikaru Samejima, President, Medical Care Solutions Company
Toshihiko Osada, President, Cardiac and Vascular Company; Division President, Interventional Systems Division, Cardiac and Vascular Company
Antoinette Gawin, President, Blood and Cell Technologies Company; President and CEO, Terumo BCT Holding Corp.
Fumihisa Hirose, General Manager, Strategic Planning Dept.; Chief Technology Officer, R&D Division
The plotline seems hauntingly familiar: A deadly pandemic on the wane, a global supply chain on the fritz, political extremism on the rise, and hyperinflation on the move.
The year? 1921.
World War I had ended three years prior but planetary peace and harmony remained elusive amid growing social, political, and economic unrest. The Soviets toppled Georgia’s government as Ireland fought for its freedom from British rule and communism gained ground in China, Italy, Spain, and South Africa.
America’s economy was barely alive, having been felled by high unemployment (11.7%), a bear market (down 50%), and declining corporate profits. Europe’s fiscal health wasn’t much better—exorbitant war debts and hyperinflation sowed economic misery in both Austria and Germany, and a post-war shipbuilding slowdown effectively torpedoed Britain’s gross domestic product (it fell 22% in nine months).
Japan, meanwhile, was running short on thermometers. The country usually imported these instruments from Germany, the United Kingdom, and United States, but the war had severed the entire flow of goods and services. Further complicating matters was the financial instability of Japan’s only thermometer manufacturer, Takeuchi Terumo Works.
Realizing the critical need for domestic production, renowned physician/bacteriologist Baron Shibasaburo Kitasato and several scientists founded the Red Line Thermometers Corporation. Born on Sept. 17, 1921, the fledgling firm introduced its first clinical thermometer—Jintan Taionkei—to the Japanese market just five months later.
“Our goal in establishing the company is to manufacture and sell a wide variety of clinical and other thermometers and scientific instruments,” Red Line’s charter states. “Recently, we have realized that the development and spread of the concept of individuals taking care of their own health has led to increased demand for thermometers in Japan as well as in the developed nations of Europe and the United States, upon whom we have thus far depended to supply us with these items. But as the balance between supply and demand shifts, we are fast reaching a time when the present situation will reverse and there will be increased demand outside of Japan for products manufactured in Japan. This will inevitably lead to increased exports of our country’s products. Thus, we are supremely confident that our company’s future prospects are highly promising, that our profit will be great, and our business will thrive far into the future.”
Far, indeed. A century after its founding, Red Line Thermometers—a.k.a., Terumo Corporation (the name changed in 1974)—not only is thriving but driving therapeutic innovation as well.
In FY22 (year ended March 31, 2022), Terumo grew sales 14.6% to ¥703.3 billion. Gross profit ballooned 13.1% to ¥369.3 billion, and operating profit mushroomed 17.9% to ¥115.9 billion, according to company financial data.
Terumo’s stellar earnings in its most recent fiscal year was driven mainly by solid growth in its three business segments. Medical Care Solutions (formerly the General Hospital Company) proceeds benefitted from recovering demand for syringes and infusion-related products in Japan as well as higher sales of infusion and syringe pumps. Revenue in this segment rose 5.6% to ¥185.3 billion, with the bulk of sales derived domestically (¥142.7 billion).
Certainly, fostering the segment’s FY22 profit was the domestic launch of the Dexcom G6 continuous glucose monitoring (CGM) system, and partnerships with both Glooko and Diabeloop.
The latter union aims to supply Europe with automatic insulin delivery (AID) solutions while the Glooko pairing enhances diabetes data sharing solutions.
Terumo debuted the Dexcom G6 CGM system in late July 2021 (the firm has exclusive distribution rights in Japan). The product allows for real-time glucose monitoring through a small, wearable sensor and transmitter that measures and automatically sends glucose level readings wirelessly to a smart device or receiver every five minutes. The constant data flow enables users to track their glucose levels throughout the day and determine whether they are within their target range. The system also displays trend arrows to show the speed and direction glucose levels are heading.
In addition, the Dexcom G6 CGM system features customizable alerts to proactively warn patients when their glucose levels are out of range and an “Urgent Low-Soon (ULS) Alert” that warns users 20 minutes before a severe hypoglycemic event, giving them time to take appropriate action.
“The launch of Dexcom G6 CGM System in Japan is an important milestone for Terumo as we promise to commit to contribute to diabetes care comprehensively,” Yoshiya Kikawa, Terumo’s general manager DM and Consumer Healthcare Group, said in prepared remarks. “With our product lineup of CGM blood glucose system, and Japan’s first tubing-free insulin patch pump, we will continue to strive to improve the quality of life for people living with diabetes.”
Terumo also continued its quest to improve blood and plasma supplies. During fiscal 2022, its company’s Blood and Cell Technologies business forged several partnerships, launched new software, and received regulatory approvals for two new products.
Terumo paired with CSL Plasma in April 2021 to deliver a new plasma collection platform at CSL’s U.S. collection centers, joined the Process Analytical Technology Consortium in June to help streamline cell and gene therapy manufacturing, and teamed up with BioCentriq in October (2021) to expand its cell and gene therapy market footprint.
The BioCentriq collaboration involves equipping the company’s laboratories with Terumo’s solutions, including its Quantum Cell Expansion and Finia Fill and Finish systems. Quantum is a functionally closed, automated cell expansion system enabling process control for various adherent cells, suspension cells, viral vectors, and exosomes. The Finia System automates the final steps of cell and gene manufacturing.
Terumo upgraded the Finia System last fall, adding automated procedure configuration, enhanced reporting, and offline mode to its capabilities. The offline mode allows the system to run without network connectivity and removes any risk of delay from IT complications. Its Cell Processing Application can manage multiple Finia devices from a central server, supporting cGMP compliance with user authentication, electronic batch reporting, and workflow configuration.
The two regulatory approvals Terumo scored for its Blood and Cell Technologies business this past fiscal year occurred seven months apart. Health Canada greenlighted the Mirasol Pathogen Reduction Technology System in mid-August; it is routinely used at more than 100 blood centers in over 20 countries in Europe, the Middle East, Africa, Asia, and Latin America. Employing riboflavin (vitamin B2) and ultraviolet light, Mirasol is designed to reduce the pathogen load of various disease-causing agents such as viruses, parasites, and bacteria in blood products before transfusions. Mirasol also inactivates white blood cells to help reduce certain transfusion reactions.
Twenty-nine weeks after Health Canada’s Mirasol approval, the U.S. Food and Drug Administration cleared Terumo’s next-generation automated plasma collection system. Designed to collect plasma in 35 minutes or less, the Rika system features an advanced control system to enhance donor safety; it monitors the collection process and guides the operator through alerts and visual cues, while the platform itself makes automatic adjustments during each procedure.
The Blood and Cell Technology segment’s mix of partnerships and new products helped boost FY22 sales 10.1% to ¥120.6 billion. Blood center product sales in Japan fell 1.2% to ¥12 billion due to lower demand for blood bags. Overseas revenue rose 11.5% to ¥108.5 billion, as demand recovered for whole blood collection, automated blood processing products, and therapeutic apheresis systems in Europe and North America. Proceeds in China surged 30% on improved sales of blood component collection systems for blood centers.
Cardiac and Vascular revenue followed a similar trajectory in FY22, sans a domestic loss. Although Japan’s moderate COVID-19 recovery limited profits at home, robust carotid artery stents sales lifted sales 1.9% to ¥51.1 billion. Overseas proceeds skyrocketed 24.3% to ¥345.9 billion, driven by strong demand for interventional and neurovascular solutions.
Overall, the Cardiac and Vascular segment grew sales 21% in fiscal 2022, generating ¥397.1 billion—more than double Blood and Cell Technologies’ total. Like its segment siblings, Cardiac and Vascular profited from a mix of strategic alliances and expanded product offerings during the year, including:
- A collaboration with Etiometry to provide advanced clinical decision support to adult cardiac surgery patients during and after their procedures.
- A co-marketing agreement with Corazon Inc. The pair will use Terumo’s proprietary ePRISM technology to improve outcomes for cardiac patients and Corazon’s E3 approach to accreditation as a means to monitor and recognize such improvements.
- FDA and PMDA (Japanese Pharmaceuticals and Medical Devices Agency) approval of the RelayPro Thoracic Stent-Graft System for treating thoracic aortic aneurysms. The device was also approved by the FDA to treat penetrating atherosclerotic ulcers, and was implanted in the first U.S. patient in September 2021. The RelayPro’s first “Upon Request” implant took place in January 2022.
- PMDA approval and the first commercial implant of the TREO Endovascular Device in Japan. The product’s three-piece design features in-situ limb adjustability and provides a range of aortic device configurations to specifically address individual patient anatomies.
- FDA Breakthrough Device Designation for the RelayBranch Thoracic Stent-Graft System, intended for treating thoracic aortic arch pathologies that includes coverage of the innominate and left common carotid arteries. The System consists of a main body graft that is deployed in the ascending aorta and features two anterograde tunnels giving way to a large cannulation window. Branch grafts are then deployed within these tunnels for both the innominate artery and left common carotid artery.
- The introduction of the AZUR Vascular Plug. Terumo claims the plug is the only such device compatible with a microcatheter to occlude arteries up to 8mm in diameter. It has a conformable nitinol braid that stays in place, even in tortuous anatomy.
- The launch of a multi-center, multi-arm, post-market study of Terumo’s knitted and woven surgical grafts and cardiovascular patches. The PANTHER study will enroll about 900 patients and follow them for more than a decade.
- The successful implantation of a customized thoracoabdominal hybrid device to treat thoracoabdominal aortic disease.
- The launch and first commercial case of the Aortic Balloon in the United States. The device assists physicians in the expansion of the aorta when using TREO and RELAY stent-grafts in endovascular aortic repair.
- The first U.S. clinical case using the next-generation FRED X Flow Diverter. The product features MicroVention X technology, a proprietary nano-polymer surface modification designed to reduce material thrombogenicity, or tendency for surface clot formation.