[Company analysis] Kyowa Hakko Kirin Co., Ltd. (協和発酵キリン)

「Kyowa Hakko Kirin Co., Ltd. (協和発酵キリン)」 is a biochemical company foncus on ethical drugs from 「Kirin Group(キリングループ)」. In the past, this company also had a liquor business and a food business, but since 2000, they decided to specialized in the pharmaceutical market. The number of consolidated employees is about 7,242.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Kyowa Hakko Kirin Co., Ltd.
Company name (Japanese)	協和発酵キリン
Date of establishment	Friday, July 1, 1949
Headquarters location	〒100-0004 東京都千代田区大手町一丁目9番2号 大手町フィナンシャルシティ グランキューブ
Capital	26,745
Consolidated sales	346,531
Consolidated operating profit	73,438
Consolidated total assets	741,982
Consolidated capital	649,621
Capital adequacy ratio	87.6%
Consolidated number of employees	7,242

 

 

 

2. Summary and Features

 
「Kyowa Research Laboratories(協和化学研究所)」, established in 1937, is the beginning of「Kyowa Hakko Kirin」. At that time, the martket demands for acetone, butanol and isooctane for military use was growing, so research these chemicals was the top priority for them. Then, their production plant was planned to be operational in 1944, but due to problems such as abnormal fermentation, the mass production system was actually set up in 1948 after World War II.

Later,「Kyowa Hakko Kirin」was established in 1949 as part of the GHQ's post-war corporate redevelopment plan. In its early days, they focussed on the production of pharmaceuticals such as penicillin and the brewing business such as shochu, based on fermentation technology. Then, through M & A, while expanding the brewing business, they could expand their business territory to manufacture and sell feed, food additives, and chemical products.

After the restructuring of this company, In 2000, they made business partnership with「Asahi Breweries, Ltd.」and by transfering stock shares, they became a subsidiary to「Asahi Breweries, Ltd.」and changed their name to「Asahi Kyowa Shurui Seizo(アサヒ協和酒類製造)」temporary. However, this relationship was expired in 2005, then「Nikka Whiskey(ニッカウィスキー)」has inherited the shochu and wine business previously handled by「Kyowa Hakko 」

In October 2007, they started a strategic alliance with the「Kirin Group(キリングループ)」. At this time, Kirin Brewery acquired a 28.49% of total stock share in「Kyowa Hakko」. From October 1, 2008, this company name once again was changed to「Kyowa Hakko Kirin」. And later, the food and seasoning business, which had previously been spun off under the name of「Kyowa Hakko Food(協和発酵食品)」, was integrated with「Kirin Foods(キリン食品)」.

From this time, Kyowa Hakko Kirin's management policy has been changed to focus on research and development of antibody drugs. About this field, this company has a history of developing new drugs using microorganisms since the days when amino acids and alcoholic beverages were produced in the past. In other words, they are developing biopharmaceuticals based on fermentation technology accumulated in the brewing business for shochu and beer.

 

 

 

3. Major Business

 

■ Manufacture and sale of ethical drugs

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		347,956	353,380	346,531
Consolidated operating profit		42,877	55,849	73,438
Consolidated total assets		683,801	708,295	741,982
Consolidated net assets		577,036	616,028	649,621
Breakdown of sales	Pharmaceuticals business	269,263	274,776	270,438
	Biochemical business	78,693	78,605	76,093