07.22.21
Rank: #27 (Last year: #26)
$3.47 Billion ($5.34 Billion)
Prior Fiscal: $3.31 Billion
Percentage Change: +4.8%
No. of Employees: 36,795 (total)
Global Headquarters: Tokyo, Japan
KEY EXECUTIVES:
Hiroshi Suzuki, President and CEO
Ryo Hirooka, CFO
Eiichiro Ikeda, Chief Technology Officer
Augustine Yee, Chief Legal Officer and Head of Corporate Development and Affairs
Finally, some proof.
For years, scholars have postulated the existence of a “big-fish-small-pond” effect (BFSPE) in education. Introduced in 1984, BFSPE refers to the way students think about themselves as learners—i.e., their “academic self-concept.”
Studies have shown that pupils in high-achieving schools compare themselves with their peers and consider themselves less capable, while equally performing students in lower-achieving institutions have more confidence. Put simply, high-achieving students (big fish) in low-achieving schools (small pond) have better self-esteem than equally talented pupils (small fish) in high-achieving environments (big pond).
BFSPE is believed to be quite predominant in academia, transcending subjects, education level, sex, geography, and income. Although the effect has been documented in multiple studies, there has never been conclusive evidence of its cause, leading scholars to suspect factors like character traits might affect self-confidence.
Research from the Stanford Graduate School of Education, however, found a direct link between highly competitive academic programs and students’ low self-esteem. The data also reaffirmed the effect’s pervasiveness in education.
“This study tells us, in a meaningful way, what education psychologists have long suspected,” Prashant Loyalka, a Stanford Graduate School of Education assistant professor who spearheaded the research, said in releasing the findings. “As humans, we have a tendency to compare ourselves to others in terms of our abilities and, because of that, we tend to feel better or worse about ourselves. It’s fundamental to who we are.”
The BFSPE is not strictly an educational phenomena, though. The concept also has become an acceptable business strategy among large corporations looking to secure long-term growth. Borrowing the same general principles from education (sans the academic self-esteem concept), a BFSPE business philosophy encourages larger-sized companies (big fish) to enter small markets (ponds) to avoid the competition that exists in large markets with multiple players.
Many healthcare companies have used this strategy to gain a solid foothold in their respective markets. Medtronic plc, for example, entered the Chinese healthcare market in the 1990s, when only several foreign medical device companies service the country. Big fish, small pond (at the time).
Similarly, Zimmer Biomet Holdings Inc.—before its multi-billion merger with Biomet—entered the relatively uncrowded ceramic-on-ceramic hip replacement market in 2004. “Our view is that ceramic-on-ceramic will remain a niche option, primarily for younger patients, but we are pleased that surgeons will soon be able to turn to Zimmer, not a competitor, to meet all of their preferences,” former Chairman/president/CEO Ray Elliott said.
Big fish, small pond.
The HOYA Group is a champion of the BFSPE strategy too. As president and CEO Hiroshi Suzuki noted in the company’s 2020 Integrated Report, market selection is the most important factor in developing a strong, successful business.
“At HOYA, what we mean by a ‘strong business’ can be summed up by the metaphor, ‘a large fish in a small pond.’ In other words, the business holds a dominant market share in a niche market,” he explained. “Hence, we aim for businesses that boast a high level of profitability. Since our objective is to be the top player in niche markets, we are not necessarily concerned with expanding the scale of a business or its sales. Consequently, the most important factor in the development of a strong business is market selection. If the pond already has a big fish, or there are a lot of fish swimming in the pond, or the pond is too large, the probability of success in such a market is lowered. If one chooses the wrong market, no matter how skilled the management team might be, it will not proceed well.”
HOYA appears to have chosen wisely, as the multinational set a new revenue record in fiscal 2020 (year ended March 31, 2020). Sales climbed 1.8 percent to 576.5 billion yen, and profit before tax rose 1.8 percent to 147.3 billion yen but profit for the year fell 6.1 percent to 114.6 billion yen, thanks to the encroaching pandemic and a $43 million fine incurred by the company’s PENTAX Medical division. HOYA’s profit before tax ratio remained even at 25.5 percent.
The fine was part of PENTAX Medical’s penance for shipping endoscopes without U.S. Food and Drug Administration (FDA)-approved instructions, and failing to file two timely reports of infections associated with the devices. In addition to the fine, PENTAX agreed to enhance its compliance policies and procedures, and certify it meets the requirements of its deferred prosecution agreement (DPA) with the U.S. Justice Department.
“PENTAX deeply regrets that it did not timely file the MDRs [medical device reports] identified in the DPA, as well as the failure to send the approved IFUs to customers. We accept full responsibility for these failures,” PENTAX America Inc. president David Woods said in a prepared statement.
The FDA required PENTAX to revise its existing cleaning instructions in 2014, but the company continued to ship endoscopes with the old instructions for 18 months, fearing lost business over the new directions. During that gap, PENTAX generated roughly $18 million in gross profits from the sales of four types of endoscopes.
Besides eroding HOYA’s profit for the year, the U.S. Justice Department settlement helped trim pretax profits by 10.2 percent (4.7 billion yen) in the Life Care segment, which comprises 65 percent of the company’s total sales. Pretax profits tumbled to 62.2 billion yen, aided in part by poor foreign exchange rates on eyeglass lens sales and startup costs for a new Vietnamese plant.
Overall Life Care segment sales in FY20 remained flat at 375 billion yen; revenue likely was impacted both by Japan’s sales 2 percent tax hike and the COVID-19-induced imposed by European governments. The tax hike (to 10 percent) took effect Oct. 1, 2019.
Contact lens proceeds rose compared with FY19 due to pre-tax hike demand, an increase in new customers, higher sales of value-added products, and new “Eyecity” retail store openings, according to HOYA’s financial report.
The Vivinex brand of intraocular lenses (IOL) and new product introductions generated robust sales of IOLs for cataracts. One of the newest products was the Nanex multiSert+, which received CE mark approval in July 2019. The Nanex multiSert consists of a new IOL delivered in a first-of-its-kind preloaded delivery system.
The multiSert+’s 1.62mm injector tip is believed to be the world’s smallest nozzle size in an open-loop preloaded hydrophobic IOL system. Ideal for micro incision cataract surgery as low as 1.8 mm, the lens features HOYA’s proprietary active oxygen processing treatment that is designed to reduce posterior capsular opacification.
The multiSert+ offers cataract surgeons multiple options for delivery. They can use either a single-handed push or two- handed screw injection based on their surgical needs and personal preference.
multiSert+ also contains a uniquely-designed insert shield for precise injector tip insertion depth management. It is a fully preloaded injector for consistent and predictable IOL delivery.
New products also boosted overseas sales of medical endoscopes in FY20 but domestic (Japanese) revenue remained flat. Overall sales increased on a local currency basis but fell on a yen basis due to volatile foreign exchange rates.
One of the segment’s new entrants was the DEC HD duodenoscope, released in the United States in November 2019. The high-definition duodenoscope includes multiple disposable components, including the sterile distal cap and elevator lever, for unit reprocessing. The disposable elements help reduce the risk of bioburden remaining on conventional elevator components after reprocessing.
The advanced duodenoscope with HD imaging allows endoscopists to diagnose and visualize the mucosa in detail, identify abnormal tissue, and locate the papilla for cannulation.
“The DEC represents a significant clinical innovation both in device design and patient safety due to its sterile and disposable distal end cap with integrated elevator, and also a human factors-validated approach to both reprocessing and competency-based training,” global chief clinical officer Dr. Hudson Garrett said upon the duodenoscope’s debut. “The DEC was specifically designed in response to the evidence-based recommendations released by the FDA and CDC and represents a critical step forward in improving patient safety, reducing contamination, and optimizing endoscope reprocessing programs.”
About a month after releasing the DEC HD duodenoscope, PENTAX Medical secured CE marking for its Discovery artificial intelligence-assisted polyp detector. The company worked with expert clinical partners from six major medical institutions worldwide to develop the detector, which is designed to spot colorectal polyps in real time during exams. More than 120,000 files from roughly 300 clinical cases have been used in the development of the system’s software.
The new system is equipped with a flat monitor and a self-explaining menu that features an advanced touchscreen interface. It can be used with any of the company’s video endoscopy systems to detect potential polyps.
$3.47 Billion ($5.34 Billion)
Prior Fiscal: $3.31 Billion
Percentage Change: +4.8%
No. of Employees: 36,795 (total)
Global Headquarters: Tokyo, Japan
KEY EXECUTIVES:
Hiroshi Suzuki, President and CEO
Ryo Hirooka, CFO
Eiichiro Ikeda, Chief Technology Officer
Augustine Yee, Chief Legal Officer and Head of Corporate Development and Affairs
Finally, some proof.
For years, scholars have postulated the existence of a “big-fish-small-pond” effect (BFSPE) in education. Introduced in 1984, BFSPE refers to the way students think about themselves as learners—i.e., their “academic self-concept.”
Studies have shown that pupils in high-achieving schools compare themselves with their peers and consider themselves less capable, while equally performing students in lower-achieving institutions have more confidence. Put simply, high-achieving students (big fish) in low-achieving schools (small pond) have better self-esteem than equally talented pupils (small fish) in high-achieving environments (big pond).
BFSPE is believed to be quite predominant in academia, transcending subjects, education level, sex, geography, and income. Although the effect has been documented in multiple studies, there has never been conclusive evidence of its cause, leading scholars to suspect factors like character traits might affect self-confidence.
Research from the Stanford Graduate School of Education, however, found a direct link between highly competitive academic programs and students’ low self-esteem. The data also reaffirmed the effect’s pervasiveness in education.
“This study tells us, in a meaningful way, what education psychologists have long suspected,” Prashant Loyalka, a Stanford Graduate School of Education assistant professor who spearheaded the research, said in releasing the findings. “As humans, we have a tendency to compare ourselves to others in terms of our abilities and, because of that, we tend to feel better or worse about ourselves. It’s fundamental to who we are.”
The BFSPE is not strictly an educational phenomena, though. The concept also has become an acceptable business strategy among large corporations looking to secure long-term growth. Borrowing the same general principles from education (sans the academic self-esteem concept), a BFSPE business philosophy encourages larger-sized companies (big fish) to enter small markets (ponds) to avoid the competition that exists in large markets with multiple players.
Many healthcare companies have used this strategy to gain a solid foothold in their respective markets. Medtronic plc, for example, entered the Chinese healthcare market in the 1990s, when only several foreign medical device companies service the country. Big fish, small pond (at the time).
Similarly, Zimmer Biomet Holdings Inc.—before its multi-billion merger with Biomet—entered the relatively uncrowded ceramic-on-ceramic hip replacement market in 2004. “Our view is that ceramic-on-ceramic will remain a niche option, primarily for younger patients, but we are pleased that surgeons will soon be able to turn to Zimmer, not a competitor, to meet all of their preferences,” former Chairman/president/CEO Ray Elliott said.
Big fish, small pond.
The HOYA Group is a champion of the BFSPE strategy too. As president and CEO Hiroshi Suzuki noted in the company’s 2020 Integrated Report, market selection is the most important factor in developing a strong, successful business.
“At HOYA, what we mean by a ‘strong business’ can be summed up by the metaphor, ‘a large fish in a small pond.’ In other words, the business holds a dominant market share in a niche market,” he explained. “Hence, we aim for businesses that boast a high level of profitability. Since our objective is to be the top player in niche markets, we are not necessarily concerned with expanding the scale of a business or its sales. Consequently, the most important factor in the development of a strong business is market selection. If the pond already has a big fish, or there are a lot of fish swimming in the pond, or the pond is too large, the probability of success in such a market is lowered. If one chooses the wrong market, no matter how skilled the management team might be, it will not proceed well.”
HOYA appears to have chosen wisely, as the multinational set a new revenue record in fiscal 2020 (year ended March 31, 2020). Sales climbed 1.8 percent to 576.5 billion yen, and profit before tax rose 1.8 percent to 147.3 billion yen but profit for the year fell 6.1 percent to 114.6 billion yen, thanks to the encroaching pandemic and a $43 million fine incurred by the company’s PENTAX Medical division. HOYA’s profit before tax ratio remained even at 25.5 percent.
The fine was part of PENTAX Medical’s penance for shipping endoscopes without U.S. Food and Drug Administration (FDA)-approved instructions, and failing to file two timely reports of infections associated with the devices. In addition to the fine, PENTAX agreed to enhance its compliance policies and procedures, and certify it meets the requirements of its deferred prosecution agreement (DPA) with the U.S. Justice Department.
“PENTAX deeply regrets that it did not timely file the MDRs [medical device reports] identified in the DPA, as well as the failure to send the approved IFUs to customers. We accept full responsibility for these failures,” PENTAX America Inc. president David Woods said in a prepared statement.
The FDA required PENTAX to revise its existing cleaning instructions in 2014, but the company continued to ship endoscopes with the old instructions for 18 months, fearing lost business over the new directions. During that gap, PENTAX generated roughly $18 million in gross profits from the sales of four types of endoscopes.
Besides eroding HOYA’s profit for the year, the U.S. Justice Department settlement helped trim pretax profits by 10.2 percent (4.7 billion yen) in the Life Care segment, which comprises 65 percent of the company’s total sales. Pretax profits tumbled to 62.2 billion yen, aided in part by poor foreign exchange rates on eyeglass lens sales and startup costs for a new Vietnamese plant.
Overall Life Care segment sales in FY20 remained flat at 375 billion yen; revenue likely was impacted both by Japan’s sales 2 percent tax hike and the COVID-19-induced imposed by European governments. The tax hike (to 10 percent) took effect Oct. 1, 2019.
Contact lens proceeds rose compared with FY19 due to pre-tax hike demand, an increase in new customers, higher sales of value-added products, and new “Eyecity” retail store openings, according to HOYA’s financial report.
The Vivinex brand of intraocular lenses (IOL) and new product introductions generated robust sales of IOLs for cataracts. One of the newest products was the Nanex multiSert+, which received CE mark approval in July 2019. The Nanex multiSert consists of a new IOL delivered in a first-of-its-kind preloaded delivery system.
The multiSert+’s 1.62mm injector tip is believed to be the world’s smallest nozzle size in an open-loop preloaded hydrophobic IOL system. Ideal for micro incision cataract surgery as low as 1.8 mm, the lens features HOYA’s proprietary active oxygen processing treatment that is designed to reduce posterior capsular opacification.
The multiSert+ offers cataract surgeons multiple options for delivery. They can use either a single-handed push or two- handed screw injection based on their surgical needs and personal preference.
multiSert+ also contains a uniquely-designed insert shield for precise injector tip insertion depth management. It is a fully preloaded injector for consistent and predictable IOL delivery.
New products also boosted overseas sales of medical endoscopes in FY20 but domestic (Japanese) revenue remained flat. Overall sales increased on a local currency basis but fell on a yen basis due to volatile foreign exchange rates.
One of the segment’s new entrants was the DEC HD duodenoscope, released in the United States in November 2019. The high-definition duodenoscope includes multiple disposable components, including the sterile distal cap and elevator lever, for unit reprocessing. The disposable elements help reduce the risk of bioburden remaining on conventional elevator components after reprocessing.
The advanced duodenoscope with HD imaging allows endoscopists to diagnose and visualize the mucosa in detail, identify abnormal tissue, and locate the papilla for cannulation.
“The DEC represents a significant clinical innovation both in device design and patient safety due to its sterile and disposable distal end cap with integrated elevator, and also a human factors-validated approach to both reprocessing and competency-based training,” global chief clinical officer Dr. Hudson Garrett said upon the duodenoscope’s debut. “The DEC was specifically designed in response to the evidence-based recommendations released by the FDA and CDC and represents a critical step forward in improving patient safety, reducing contamination, and optimizing endoscope reprocessing programs.”
About a month after releasing the DEC HD duodenoscope, PENTAX Medical secured CE marking for its Discovery artificial intelligence-assisted polyp detector. The company worked with expert clinical partners from six major medical institutions worldwide to develop the detector, which is designed to spot colorectal polyps in real time during exams. More than 120,000 files from roughly 300 clinical cases have been used in the development of the system’s software.
The new system is equipped with a flat monitor and a self-explaining menu that features an advanced touchscreen interface. It can be used with any of the company’s video endoscopy systems to detect potential polyps.