Sysmex : Script file( PDF format / 2.6MB )

Presentation

Ono: Hello, everyone. My name is Ono, Senior Executive Officer, and I am in charge of eco-social and business strategies. Thank you for your valuable time today.

I will now begin the hemostasis briefing of Sysmex Corporation.

The contents of my presentation are as shown.

First, let me talk about the internal, external, and then competitive environment in the hemostasis field.

This is our innovation stream in the value creation story that we have defined. This area A is the deepening of the diagnostics business and is a fundamental area for Sysmex. The hemostasis field is included in this area, and I will focus on how we create value and produce outputs based on our historical background.

First, the internal environment. This is the sales and market share of the hemostasis field.

The hemostasis field accounts for the second largest share of sales in the Group, after hematology, at approximately 16% of total sales. Over the past five years, the average growth rate has exceeded 10%, positioning it as an area that contributes to the Group's growth.

Siemens' territory and the Company's own territory together account for approximately 30% of the global market share.

Next, I would like to talk about the external environment and the market in the hemostasis field.

The market is maintaining an increasing trend, coupled with the very large increase in cardiac diseases following cancer.

In terms of scale, the global market has reached USD3 billion, and is positioned as a market with high growth potential in both the US and European markets as well as emerging markets.

This time, Sysmex is working on EMEA and North America, which are new target markets for us. Thus, we will have two growth factors: the market itself is growing, and we can expand our sales area.

We will look at testing cost.

As I mentioned earlier, the hemostasis field involves a test that is closely related to the identification of disease or disease factors. Hemostasis testing has a higher clinical value than the broad screening test of hematology because it is used to identify more diseases and disease factors, and the insurance point testing price is higher than that of hematology. This is true in Japan, and especially in the US and other countries, the unit cost is significantly higher than in hematology.

In disease, the test is widely used to identify hemophilia and deficiency factors, myocardial infarction, stroke, and the effects of therapeutic drugs and monitoring.

We have been a manufacturer of hematology products for a long time, but we have also a long history of the hemostasis field dating back to the 1980s.

The yellow "CA-100" on the far left was released in 1984 and won the Good Design Award for its innovative design and use of color at the time. Since 1984, this year marks exactly 40 years since we started our hemostasis business.

From there, the Company moved forward with full automation to incorporate world-first functions such as random access and auto-sampling of samples, pursuing products and services that would exceed customer expectations and solidify its foundation toward the top share in the domestic market.

This slide shows the situation and instrument from the 1990s to the early 2000s.

The "CA-5000" on the left is a device released in 1990. At the time, I was engaged in sales activities in Japan, and I remember that this analyzer sold very well. It was not because I was a good salesman, but because the product was very good. Customers loved the new features such as complete simultaneous measurement of five basic tests, automatic sample tube supply, bi-directional connection to the host PC, and touch panel support. We were even using touch panels in 1990, so you can understand that we were very advanced.

By continuing to develop and deliver functions that contribute to improved laboratory productivity, sales grew globally. This is where the alliance with Dade Behring, then known as Siemens, began. The next device after the "CA-5000" was the "CA-1000," which was released in 1992, and it was from this device that the alliance began to take concrete steps forward.

The "CA-6000" on the right is an instrument that can perform clotting, chromogenic substrate, and immuno-turbidimetry in a single unit. This is a breakthrough with reflective functionality, which means that cap-piercing was also added. Chromogenic substrate and immuno-turbidimetry are used in biochemistry, but we have responded to the need to measure these in the same sample for hemostasis.

In the 2000s, the Company moved forward to provide more value, including the provision of IT-based external accuracy management. The world's fastest measurement speed, platelet aggregation capacity, and multi-wave measurement have progressed.

The "CS Series" through the "CN Series," which will be introduced later, have received high acclaim for their significant space savings and the incorporation of an immunoassay module.

World's -First Functions Sysmex Has Realized

World's first functions

Value provided

Percentage detection method

Liquid level detection and aspiration of reagents and samples

Cap piercing

World's-fastest processing

(500 tests/hour)

Multi-wave random measurement

Improved measurement capability (for low fibrin plasma)

Reduction of reagent loss, automation of specimen setting

No need to open the caps, less burden on the user, improved safety

High throughput, reduced inspection time, higher efficiency

Higher sensitivity, reduction of re-tests

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This page lists the world's first functions that we have achieved.

The percentage detection method, and liquid level detection and aspiration of reagents and samples simultaneously improve measurement capability, reduce reagent loss, and automate sample setting, thereby reducing the cost to the customer and improving the user experience.

Cap-piercing and the world's fastest throughput are realized with high workability in the first place, high throughput, and shorter and more efficient testing time, in addition to customer safety aspects such as high safety, i.e. no need to open the lid.

Multi-wave random measurement has responded to needs in areas such as removing constraints where originally bound by set items and reducing unnecessary retests by increasing sensitivity.

The newest "CN Series" has inherited this philosophy, with blue text indicating inheritance and green text indicating further evolution. This is shown just for reference.

While we have been producing groundbreaking products in the area of instruments, we did not have a large selection of reagents, and we started to offer a full lineup of reagents through an alliance with Siemens, Dade Behring at that time.

However, from there, we have also been working on our own product lineup. In early 2000, we integrated

INTERNATIONAL REAGENTS CORPORATION and began developing and manufacturing reagents suitable for the domestic market on our own. Since 2010, we have also had HYPHEN of France under our Group umbrella to develop and manufacture state-of-the-art hemostatic items in-house.

Although lyophilized reagents are still the mainstream, we have unique liquid reagents in-house and are now building a robust testing portfolio. We believe that promoting the development of our own reagents and differentiation through liquefaction will be of great value to our customers. Sysmex is the only company that handles all six basic items in liquid reagents, including those currently under regulatory review, and we believe this gives us a significant advantage over our competitors.

The competitive environment is unique from other testing fields. The specialized manufacturers who have dedicated themselves to this field, such as Stago, Werfen, and the former IL Company, are very strong.

The reason for this is that the level of difficulty of measurement and reagent development techniques is very high, as reagents containing animal-derived components are complex, which makes interpretation of measurement results difficult and requires a high level of know-how in terms of experience and academic support.

In the mainstay medium- and large-sized models, Sysmex clearly has an advantage and is able to launch new products in five to seven years. This means that the transport system and peripheral modules are also very well developed.

In competing with such specialized manufacturers, we believe that the key to providing benefits to our customers is to have both instruments and reagents in-house and to combine this with service and support.

We have our own resources and assets that we have accumulated over the years.

In R&D, we have product development at Technopark; raw material development and production technology at East Site; and development, production, and sales at HYPHEN in France. The number of intellectual property rights has reached over 1,000.

On the right is our product portfolio, which includes a broad portfolio of products, from high-end to low-end, in instruments and reagents.

I will now focus on our growth strategy in light of this kind of environment.