Notice: This document is a translation of the original Japanese document and is for reference purposes only. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.
Financial Results Summary for the Fiscal Year Ended March 31, 2026
(1) Explanation of Financial Results
In the consolidated fiscal year under review (April 1, 2025 to March 31, 2026), the Japanese economy showed signs of a gradual recovery. However, close attention should still be paid to the impact of developments in the Middle East; and while improvements in the employment and income environment coupled with the effects of various policy measures are expected to underpin this moderate recovery, careful monitoring remains necessary with respect to fluctuations in the financial and capital markets and the trends surrounding U.S. trade policies.
To realize the targets outlined in the Alfresa Group's Medium- to Long-Term Vision, announced in May 2023 and which defines its business, financial, and capital strategies through fiscal 2032, the Group has formulated its 25-27 Mid-term Management Plan Vision 2032 Stage 2: "Pioneering the Future with Our Collective Strength" (hereinafter referred to as the "25-27 Mid-term Management Plan"). Under this plan, the Group is advancing the following management policies:
・Exercise the Group's collective strength to evolve and expand total supply chain services
・Strategically invest in growth businesses and new businesses
・Further strengthen the competitiveness of core businesses
・Implement rigorous cost control measures
・Promote sustainability management
In June 2025, upon approval at the 22nd Ordinary General Meeting of Shareholders, Alfresa Holdings transitioned from a company with a board of corporate auditors to a company with an audit and supervisory committee. This change allows the Company to significantly delegate authority for business execution decisions from the Board of Directors to directors, thereby expediting decision-making through the separation of supervisory and executive functions and delegation of authority. By appointing directors who are Audit and Supervisory Committee members, the Company aims to further enhance the Board's monitoring functions, strengthen corporate governance, and improve corporate value.
In November 2025, Alfresa Holdings Corporation, Kidswell Bio Corporation (head office: Chuo-ku, Tokyo), Chiome Bioscience Inc. (head office: Shibuya-ku, Tokyo), and Mycenax Biotech Inc. (head office: Hsinchu, Taiwan) reached an agreement to establish a joint venture for the manufacture of active pharmaceutical ingredients (APIs) and drug products for biosimilars,*1and the Company's Board of Directors resolved to execute an agreement regarding the establishment of this joint venture. Through this agreement, the four companies will move forward with developing domestic manufacturing facilities for biopharmaceuticals and biosimilars and promoting CDMO services*2through the joint venture by leveraging the strengths of each company. Furthermore, by integrating the distribution capabilities of the Alfresa Group, the companies aim to build a comprehensive value chain for biosimilars, thereby improving domestic self-sufficiency in biosimilars and establishing a stable supply system. In addition, the companies will work to export biosimilars through this initiative, as well as fostering skilled professionals in the field of biopharmaceutical development and manufacturing in Japan, ultimately supporting the advancement of the biopharmaceutical industry.
In January 2026, the Alfresa Group launched the PATH-Solution service, a platform that provides comprehensive support for emerging overseas biopharmaceutical companies seeking to enter the Japanese market, with the aim of addressing drug lag and drug loss. Through this service, under the concept of total supply chain services, we will leverage the businesses within the Alfresa Group to
provide end-to-end, hands-on support spanning market entry assessment through development, regulatory affairs, manufacturing, sales, and post-marketing surveillance.
In the consolidated fiscal year under review, net sales for the Alfresa Group increased 4.8% year on year, to ¥3,104,064 million, while operating profit decreased 5.0% year on year, to ¥36,164 million, and ordinary profit declined 4.6% year on year, to ¥38,634 million. However, due in part to the recording of a gain on investment securities of ¥25,331 million under extraordinary income from the reduction of cross-shareholdings, profit attributable to owners of the parent increased 52.4% year on year, to ¥41,746 million.
SG&A expenses included business investment expenses of ¥2,173 million related to the Regenerative Medicine-Related Business and biosimilar facility development-related businesses, among others. Excluding these costs, operating profit would be ¥38,337 million, representing a year-on-year increase of 0.7%.
*1 | An equivalent product of the equivalent quality of a reference (an original) biologic that has already been approved and sold in Japan and which is sold by a different pharmaceutical manufacturer following the patent expiration and reexamination period of the original biologic | |
*2 | CDMO (Contract Development and Manufacturing Organization) services: | Contract services ranging from development of manufacturing processes for pharmaceuticals to investigational and commercial manufacturing |
Business Segment Information
Ethical Pharmaceuticals Wholesaling Business
In the Ethical Pharmaceuticals Wholesaling Business segment, we aim to expand business opportunities toward the realization of total supply chain services while implementing the following priority measures set forth in the 25-27 Mid-term Management Plan.
・Maximization of marketing specialists' strengths
・Building of a nationwide network
・Building of a revenue base by operating a solutions business
・Creation of a logistics system that meets stakeholder needs
・Strategic strengthening of human capital across the Group
In terms of maximizing the strengths of our marketing specialists, we are deploying neo-primary strategies*3as the industry leader in terms of the number of marketing specialists. While promoting active sales expansion, we are also working to improve operational efficiency by leveraging our products and services. In particular, by focusing on sales activities targeting prescribing doctors, we have achieved high sales growth in clinical sales channels.
As part of our strategic strengthening of human capital across the Group, we are actively promoting personnel exchanges among Group companies. In so doing, we will further strengthen collaboration and build a framework to provide highly functional, high-quality services uniformly nationwide, thereby contributing even further to the health of residents in local communities and the growth of our customers and business partners.
Regarding the creation of a logistics system that meets stakeholder needs, we are enhancing distribution quality by actively promoting the acquisition of ISO 9001 certification, the international standard for quality management systems. In the consolidated fiscal year under review, eight consolidated subsidiaries*4newly obtained ISO 9001 certification. We will continue to pursue ISO certification across the Group, striving to further improve the satisfaction of our customers and business partners.
In September 2025, as part of efforts to build a nationwide network, TS Alfresa Corporation acquired all shares of Miyanomedix Inc. (head office: Fukuyama City, Hiroshima Prefecture), a trading company specializing in medical devices, thereby making it a subsidiary. In addition, Tohoku Alfresa Corporation concluded a share transfer agreement on October 31, 2025, to acquire all shares of EAST
JAPAN MEDICAL SYSTEM LTD. (head office: Aoba-ku, Sendai City, Miyagi Prefecture), also a trading company specializing in medical devices. These initiatives are aimed at strengthening the distribution functions of medical products within our total supply chain services and contributing further to regional healthcare.
In March 2026, Alfresa Holdings Corporation concluded a share transfer agreement with Onsendo Co., Ltd. (head office: Isahaya City, Nagasaki Prefecture), acquiring all shares of the company's wholly owned subsidiary TECHNO SUZUTA Co., Ltd., a trading company specializing in diagnostic reagents for clinical and research use, medical devices, and other products, thereby making the company a subsidiary. Through this share acquisition agreement, Alfresa Holdings Corporation seeks to expand TECHNO SUZUTA's wholesaling business in the fields of medicine, science, and healthcare while further contributing to community healthcare by enhancing its distribution network for medical products in the Kyushu region.
Despite a challenging business environment during the consolidated fiscal year under review-impacted by the negative effects of interim-year revisions to National Health Insurance (NHI) drug prices in April 2025 and rising logistics costs including labor expenses-the Ethical Pharmaceuticals Wholesaling Business achieved revenue growth exceeding market expansion. This was driven by the deployment of neo-primary strategies and an increase in the handling of limited-distribution products such as specialty pharmaceuticals, resulting in net sales of ¥2,782,584 million (up 5.4% year on year) and operating profit of ¥33,297 million (up 0.7% year on year).
The net sales figure includes intersegment sales of ¥19,502 million, an increase of 2.7% year on year.
*3
Neo-primary strategies are sales strategies focused on promoting specialty pharmaceuticals, despite their limited
indications, targeting a relatively broad patient base and being prescribed not only in specialized hospitals but also in primary care settings. Amid the ongoing reduction and streamlining of medical representatives at pharmaceutical companies, there is a growing need for wide-reaching information provision to prescribing doctors. To address this, we are maximizing the use of the Group's marketing specialist resources to differentiate ourselves from competitors.
*4
TS Alfresa Corporation (head office:
Nishi-ku, Hiroshima City, Hiroshima Prefecture)
Logistics Division, Quality Control Department and Onomichi
Distribution Center
RYUYAKU CO., LTD. (head office:
Urasoe City, Okinawa Prefecture)
Logistics Department, Administration Division
Meisho Co., Ltd. (head office:
Kanazawa City, Ishikawa Prefecture)
Logistics Department, Administration Division (currently Corporate
Support Unit, Distribution Strategy Department)
Tohoku Alfresa Corporation (head
offices: Wakabayashi-ku, Sendai City, Miyagi Prefecture and Koriyama City, Fukushima Prefecture)
Logistics Division and Koriyama Distribution Center
Shikoku Alfresa Corporation (head
office: Takamatsu City, Kagawa Prefecture)
Logistics Operations Department, Shikoku Distribution Center
Alfresa Corporation (head office:
Chiyoda-ku, Tokyo)
Logistics Operations Department, Tsukuba Distribution Center,
Kanagawa Distribution Center, Shizuoka Distribution Center, Fukuoka Distribution Center (four locations newly acquired certification in the consolidated fiscal year under review)
A・L Plus Co., LTD. (head office: Chiyoda-ku, Tokyo)
Logistics Planning and Operations Department and Tsukuba Office
Specialty Medical Distribution
Corporation (head office: Chiyoda-ku, Tokyo)
Distribution of specialty pharmaceuticals (including pharmaceuticals
and regenerative medicine products) and leasing of specially controlled medical devices
Self-Medication Products Wholesaling Business
In the Self-Medication Products Wholesaling Business segment, Alfresa Healthcare Corporation-a consolidated subsidiary headquartered in Chuo-ku, Tokyo-advanced key initiatives under the 25-27 Mid-term Management Plan, guided by the theme of "Health × Connectivity × Happiness." These efforts included developing sales strategies resilient to changes in the external environment and independently deploying new solutions.
In the consolidated fiscal year under review, despite rising logistics costs, the segment posted net sales of ¥267,074 million (up 0.5% year on year) and operating profit of ¥3,012 million (up 2.1% year on year) through efforts to control costs and boost revenue growth amid sales channel expansion.
The net sales figure includes intersegment sales of ¥447 million, a decrease of 5.3% year on year.
Manufacturing Business
In the Manufacturing Business segment, we aim to establish a stable management foundation through the rebuilding of our business portfolio. Under the 25-27 Mid-term Management Plan, we are promoting key initiatives that include further improvements in profitability and efficiency, the expansion of contract manufacturing and the product pipeline, and the development of new businesses in the API manufacturing business.
In February 2026, Alfresa Pharma Corporation (head office: Chuo-ku, Osaka), a subsidiary of Alfresa Holdings Corporation, commenced sales in Japan of neffy®1 mg and neffy®2 mg (general name: adrenaline), which are nasal sprays used as emergency supportive therapy to suppress anaphylaxis. These products, which contain adrenaline as the main ingredient, can be administered easily via nasal administration when treating anaphylactic reactions from bee stings, food, medicine, and other causes.
By providing neffy®1 mg and neffy®2 mg as new options for emergency supportive therapy to suppress anaphylaxis, Alfresa Pharma will continue to meet unmet medical needs by reducing the burden patients and their guardians feel at the time of administering treatment.
In the consolidated fiscal year under review, despite growth in sales of APIs and efforts to reduce SG&A expenses, sales declined overall. This was primarily due to lower pharmaceutical sales following the NHI drug price revisions and the introduction of fees for Treatment of Patients' Choice for long-listed drugs in October 2024, as well as decreased demand for diagnostic reagents. As a result, the segment recorded net sales of ¥52,179 million (down 3.5% year on year) and operating profit of
¥1,203 million (down 7.1% year on year).
The net sales figure includes intersegment sales of ¥14,998 million, a decrease of 8.4% year on year.
Dispensing Pharmacy and Related Businesses
In the Dispensing Pharmacy and Related Businesses segment, APOCREAT Corporation-a consolidated subsidiary headquartered in Toshima-ku, Tokyo that aims to provide community-focused family pharmacies-advanced initiatives under the 25-27 Mid-term Management Plan. These included enhancing patient services and prescription acquisition, increasing prescriptions from medical institutions not located near pharmacies, expanding new pharmacy functions, and entering the nursing care business.
In the consolidated fiscal year under review, the segment posted net sales of ¥37,174 million (up 0.4% year on year) and operating profit of ¥499 million (down 16.3% year on year). This was primarily, due to the negative effects of NHI drug price revisions as well as rising procurement costs, despite efforts to enhance patient services and productivity of pharmacists.
Other (Business)
At the beginning of the fiscal year ended March 31, 2026, Alfresa Holdings newly consolidated Cell Resources Corporation―a wholly owned subsidiary headquartered in Chiyoda-ku, Tokyo that operates in regenerative medicine-related fields. We are focusing on the manufacturing and storage of master cells and the development of CMO*5and CDMO businesses to launch each project as quickly as possible.
In the consolidated fiscal year under review, the segment did not post any net sales although it reported an operating loss of ¥1,099 million, due to the recording of business investment expenses, including personnel costs and R&D expenditures aimed at securing project orders, as SG&A expenses.
*5 | CMO (Contract Manufacturing Organization): | Contracts and conducts pharmaceutical manufacturing on behalf of pharmaceutical companies |
About the Alfresa Group
The Alfresa Group is a leader in the Japanese healthcare industry and is dedicated to making its corporate philosophy, "we create and deliver a fresh life for all," come true through a wide range of business lines, including ethical pharmaceuticals wholesaling, OTC pharmaceuticals wholesaling, pharmaceutical manufacturing, operating dispensing pharmacies, regenerative medicine-related business, and CRO business. Alfresa Holdings Corporation (TSE:2784) reported consolidated revenue of ¥3.1 trillion for the fiscal year ended March 31, 2026. For more information, please see: https://www.alfresa.com/eng/