[Company analysis] Terumo Corporation (テルモ)

「Terumo Corporation (テルモ)」is Japan's largest manufacturer of medical devices and pharmaceuticals. In addition to their famous thermometers, they handle general consumers products including weight scales and blood pressure monitors. This company specializes in products related to heart and blood vessels, and it achieved the world's top share in that  field. The number of consolidated employees is approximately 24,508.

 

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	Terumo Corporation
Company name (Japanese)	テルモ
Date of establishment	September 1921
Headquarters location	〒151-0072 東京都渋谷区幡ヶ谷二丁目44番1号
Capital	38,716
Consolidated sales	599,481
Consolidated operating profit	106,637
Consolidated total assets	1,120,790
Consolidated capital	698,113
Capital adequacy ratio	62.3%
Consolidated number of employees	24,508

 

 

 

2. Summary and Features

 
In 1921, Kitasato Shibasaburo(北里柴三郎), who is said to be the father of modern Japanese medicine, established「赤線検温器株式会社(Sekisen Ken-onki Corporation)」which is the the predecessor of the current 「Terumo Corporation」. This company is well known by the general consumers for household medical devices such as thermometers. Termo's thermometer has the second largest share in Japan, but in terms of the overall sales of the「Termo」, it accounts only 1%, which is a small relatively small business division.

Conversely, most of their sales come from other medical devices, such as pharmaceuticals and vascular products. In particular, they have the world's top share in manufacturing related to heart and blood vessels such as catheters and artificial heart devices. 「Terumo」 also secured the top market share in Japan for prefilled syringes that are pre-filled with chemicals.

In addition, they still continued releasing new products include like "Ad Spray", which is a nozzle-type anti-adhesion spray material developed by「Terumo」in cooperation with semiconductor resin encapsulation equipment manufacturer「TOWA」. As a Japan's first type of anti-adhension spray product, it is suitable for surgical operations ,and now it is on the mass production. 

From the 1990s,「Terumo」began building a global production system. Since the end of the 1990s, they have been operating their factories in China and the Philippines. 「Terumo」aggressively increasing the number of items by purchasing oversea local companies in China. For example, in 2018, they purchased「Shanghai Kinetic Medical」for about 14 billion yen, expecting increases in demand of medical device in China.

 

 

 

3. Major Business

 

■ TIS (Terumo Interventional Systems) business

■ Cerebrovascular (Neuro Vascular) business

■ Cardiovascular business

■ Aortic business

■ Hospital system business

■ Blood system business

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		514,164	587,775	599,481
Consolidated operating profit		87,777	108,552	106,637
Consolidated total assets		1,022,262	1,078,981	1,120,790
Consolidated net assets		491,522	550,435	698,113
Breakdown of sales	Cardiovascular business	261,529	324,001	328,500
	Hospital system business	157,946	158,848	165,766
	Blood system business	94,483	104,697	104,984
	Adjustments	205	228	230