Nipro Annual Report to Shareholders, 'Leap Higher and Further'.Tokyo, Japan, Dec 13, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Nipro Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 8086), a world leader in the researching and developing medical equipment, has published its 2006 Annual Report for Shareholders. With a goal of becoming one of the world's top manufacturers of artificial organs artificial organs, n.pl the devices used to support life because of the failure or limited capacity of the human organ. The most effective is the artificial kidney, which consists of a set of tubes that pass the blood through a dialysate solution where , the Nipro Group is also working to achieve globally competitive leadership in the pharmaceuticals sector, in terms of both quality and cost, and is aggressively expanding into overseas markets. During FY2005, Nipro by and large put in place the business infrastructure needed for these efforts; the time to make the next leap ahead has come at last. The Nipro brand of medical equipment is used extensively, both in Japan and abroad. The technological capabilities and quality of this equipment - in particular, dialysis- (artificial kidney-) related products, in which the Nipro Group boasts a leading share of the world market - are highly regarded internationally. We have also steadily improved our business performance with high-value added pharmaceuticals such as injectable in·ject·a·ble adj. Capable of being injected. Used of a drug. n. A drug or medicine that can be injected. kit preparations that incorporate medical equipment technology. Over the past several years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Pharmaceutical Business has actively sought to expand the scope of its operations with a focus on the generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. business, demand for generic drugs being expected to swell as governments reinforce policies to hold down medical costs. The Nipro Group's efforts in this sector have been rewarded by its ranking in FY2005 (the year ended March 31, 2006) alongside the top-class companies in Japan's generic pharmaceutical industry in terms of the number of product lines marketed. Nipro Annual Report to Shareholders, 'Leap Higher and Further' President Mioru Sano addresses these and other issues in his 2006 address to stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. , "Conviction: We are on the threshold of an era in which the Nipro Group will rapidly become a global player, in both name and fact." Japan's economy enjoyed a gentle recovery overall during FY2005, supported by robust plant investment, against a background of improved corporate revenues and personal consumption. Nevertheless, the deceleration deceleration /de·cel·er·a·tion/ (de-sel?er-a´shun) decrease in rate or speed. early deceleration in overseas economies and the sharp surge in petroleum prices, coupled with bearish Bearish Words used to describe investor attitude. A bearish investor believes that a particular asset or the market as a whole will decline in value. bearish foreign exchange indications for the U.S dollar, do not encourage optimism regarding our future operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. . Government policies to hold down medical care costs, the group consolidation of medical institutions and the pursuit of joint purchasing have exposed the medical equipment industry, on which we rely, to severe price and sales competition. From another aspect, revisions to the Pharmaceutical Business Law and reforms to the medical care system are among noteworthy changes that have put considerable additional pressure on the industry. Within this context, the Nipro Group has been working to develop new and highly competitive products to enhance its product lineup, actively expand its sales channels and augment sales activities, so as to improve business results. In consequence, consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for FY2005 were up 7.5%, to JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 206.8 billion; consolidated operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was up 18.5%, to JPY 12.3 billion on a year-on-year basis. Overseas transaction expanded because Nipro-branded products increased greatly and contribute to these higher figures. Recent expansion of our direct sales structure overseas, our encouragement of local sales activities and our compartmentalization with OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partners continue to pay off. Consolidated net income for FY2005 was JPY 4.5 billion, down 0.1% from the previous year, due to higher extraordinary losses (impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. loss on fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → ). Moving Toward the Final Stage of Setting Foundations for Change-adaptive Growth Our corporate group has announced targets of JPY 300 billion in consolidated net sales (Following the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of our Store Business, we have revised our target of consolidated net sales from JPY 300 billion to JPY 200 billion). JPY 20 billion in consolidated ordinary income and 10% of return on equity (ROE), to be achieved by 2010. The three-year period from FY2003 to FY2005 was stipulated as the period for establishing and reinforcing the business foundations needed to accomplish these objectives; efforts are under way to augment our R&D (productivity), production and sales capabilities. FY2005 represents the last year of this period and, for the most part, the course (framework) for business in an age of change has been set and the foundations for growth have been put in place. Building on these, we will further accelerate our business development toward realizing considerable growth. On the Verge On the Verge (or The Geography of Yearning) is a play written by Eric Overmyer. It makes extensive use of esoteric language and pop culture references from the late nineteenth century to 1955. of Becoming the World's Top Dialyzer dialyzer /di·a·lyz·er/ (di´ah-liz?er) hemodialyzer. di·a·lyz·er n. 1. A machine equipped with a semipermeable membrane and used for performing dialysis. 2. Manufacturer Supported by the two pillars of the Medical Equipment and Pharmaceutical Businesses, the Nipro Group will pursue dynamic expansion strategies and technology mergers in both divisions, and will seek future growth by establishing competitive advantages globally, in terms of function, quality and cost. In laying the groundwork to achieve these aims, our establishment of an in-house manufacturing system, on which we have been working since the year before last, for the hollow fibers used in dialyzers, a mainstay product, was a development worthy of special note in the Medical Equipment Business field during FY2005. This advance has enabled full-scale manufacture, from raw material to finished product, dramatically boosting cost and quality competitiveness. Because we can now offer polyethersulfone synthetic membranes in addition to our regular triacetate Noun 1. triacetate - cellulose acetate that is relatively slow to burn; used instead of celluloid for motion-picture film cellulose triacetate cellulose acetate - an ester of acetic acid; used in fibers and fabrics; photographic films and varnishes synthetic membranes, our broader product lineup puts Nipro on the verge of claiming top share in the world market. Our current annual production capacity for dialyzers is 30 million units; to double this to 60 million, we have undertaken expansion of our Odate factory. At the same time, we will push ahead even more vigorously to enhance our globally expanding sales network by creating sales promotion policies that include sales of systems that employ related products, in order to ensure ourselves an overwhelming advantage in the dialysis dialysis (dīăl`ĭsĭs), in chemistry, transfer of solute (dissolved solids) across a semipermeable membrane. Strictly speaking, dialysis refers only to the transfer of the solute; transfer of the solvent is called osmosis. market. The artificial lung business that we purchased in FY2005 from Dainippon Ink and Chemicals, Incorporated is also of great significance for the future development of our Medical Equipment Business, as part of our expansion in the artificial organ An artificial organ is a man-made organ that is implanted into, or integrated onto, a human to replace a natural organ, for the purpose of restoring a specific function or a group of related functions so the patient may return to as normal a life as possible. sector. Artificial lungs, in which we already hold a 10% share domestically, are small high-performance devices used in open-heart surgery open-heart surgery Any surgical procedure opening the heart and exposing one or more of its chambers, most often to repair valve disease or correct congenital heart malformations (see congenital heart disease). , that utilize hollow fiber membrane with particularly outstanding properties. The Nipro Group intends to make use of this hollow fiber technology to expand into oxygenator oxygenator an apparatus by which oxygen is introduced into the blood during circulation outside the body, as during open-heart surgery. See also extracorporeal circulatory support unit. systems for use in treating severe respiratory ailments. While the wide range of development issues cannot all be addressed overnight, we intend to cultivate this business so as to put it on a par with our dialysis business. Adopting a Global Perspective in the Pharmaceutical Business The Nipro Group's Pharmaceutical Business has long been especially proficient pro·fi·cient adj. Having or marked by an advanced degree of competence, as in an art, vocation, profession, or branch of learning. n. An expert; an adept. in developing injectable kit preparations, including doublebag kits and pre-filled syringes that incorporate medical equipment technology, as well as new formulae for oral drugs. The Nipro Group has a strong record in the contract manufacture of injectable products, a record that is promoted as a pillar of the Nipro Group's business results. Nevertheless, in forecasting future growth for the Pharmaceutical Business, we regard as key elements the expansion of generic drugs (oral and others). Accordingly, over the past few years we have pursued M&A that has added two generic drug companies to our Group. This has swiftly brought the number of generic products we offer to almost 400, ranking us among Japan's top corporate groups in generic drugs. In terms of injectable kit preparations, we have also dramatically engaged in capital investment. In terms of solid-form drugs, we added one contract manufacturing company to enable us to contract manufacture various products. Generic drugs that can be made and sold anywhere are truly global products. Japan will likely see many market entrants from overseas; Japanese pharmaceuticals as well must be sold worldwide. This requires top-quality products that are inexpensive not only by Japanese standards, but by global standards as well. Achieving competitive advantage in global markets is essential for the Nipro Group's survival and growth. It is true that competitors in India and China may initially have the upper hand in terms of price, but we will endeavor to hold the advantage not only in price, but also in quality. Integrated manufacture, from raw material to finished product, is key to increasing cost competitiveness and improving quality. This is why we established an in-house system for purifying pu·ri·fy v. pu·ri·fied, pu·ri·fy·ing, pu·ri·fies v.tr. 1. To rid of impurities; cleanse. 2. To rid of foreign or objectionable elements. 3. active pharmaceutical ingredients for injectable drugs, and for oral drug production acquired a stake in Yuki Gosei Kogyo Co., Ltd., which offers world-class synthetic technology. It is also why we concluded a business tie-up on developing and supplying active pharmaceutical ingredients, setting the stage for manufacturing system integration, from raw material to finished product. Acquisition of such technology will enable us to engage in R&D-based contract manufacture that begins with the development of new drugs. Offering Products and Services Unmatchable by Other Companies One endeavor we are planning in the area of generic drugs is the development of drugs for cancer treatment. In the field of the anticancer drugs Anticancer Drugs Definition Anticancer, or antineoplastic, drugs are used to treat malignancies, or cancerous growths. Drug therapy may be used alone, or in combination with other treatments such as surgery or radiation therapy. , original drug makers and physicians/medical institutions maintains strong bonds from the stage of the development of anticancer drugs, that is why the generic anti-cancer drugs had yet to be considered. The Nipro Group would like to explore this path. The first step in doing so will be developing pre-filled syringes for injectable drugs. Preparing and administering anti-cancer drugs are risky tasks requiring considerable technical skill on the part of medical practitioners. However, syringes pre-filled with appropriate doses of medicine can be used safely and immediately by medical practitioners without advanced technical skills, enabling more patients to receive treatment at their local hospitals. Syringes pre-filled with generic drugs are not only less expensive, they also greatly help improve the medical care environment; a good reason to consider them readily marketable. Significant capital investments in property, plant and equipment will naturally be needed, and initial sales will likely be limited, but we are convinced that this approach will give the Nipro Group a competitive edge. Latecomer late·com·er n. 1. One that arrives late: waited for the latecomers to be seated. 2. A recent arrival, participant, or convert: companies seeking to enter the market will lag far behind, perhaps so far behind as to render economic success unachievable. The advantages of firm size will come into play in this regard, which is another reason for picking up the pace of expansion in our generic drug businesses and contract manufacturing. Making Nipro a Worldwide Presence in Name and Fact The Nipro Group foresees global expansion of its pharmaceutical business. We believe that generic drugs for cancer treatment will sell worldwide. No other company anywhere has seriously undertaken both medical equipment and pharmaceuticals as core businesses; moreover, hybrid products that are a fusion of medical equipment and pharmaceutical technology will be increasingly important in the future. The determining factor will be the acquisition of a world-class competitive edge in terms of function, quality and cost. To this end we will continue our active investment for future growth. Our company's name and our brand name, Nipro, conceived during our first overseas expansion in the mid-1960s, is an abbreviation abbreviation, in writing, arbitrary shortening of a word, usually by cutting off letters from the end, as in U.S. and Gen. (General). Contraction serves the same purpose but is understood strictly to be the shortening of a word by cutting out letters in the middle, of "Nippon products" (products made in Japan) and "Nippon professionals" an allusion al·lu·sion n. 1. The act of alluding; indirect reference: Without naming names, the candidate criticized the national leaders by allusion. 2. to "products perfected by Japanese medical equipment professionals." Although Japanese electrical products were winning popularity at the time, Japanese medical equipment was not yet appreciated overseas. Even so, we adopted the name out of a desire to support, indeed to champion, the acceptance of products "Made in Japan by Japanese medical equipment professionals." The Nipro Group now has its eye on the global market. We take great pride in the world-class quality of our medical equipment, particularly our mainstay dialyzers. Our future efforts will be directed toward introducing our pharmaceuticals in overseas markets and ensuring that the Nipro brand is disseminated around the globe through our Medical Equipment and Pharmaceutical Business. Providing Shareholders with Increased Revenues and Profit in FY2006 The April 2006 revision of medical treatment fees led to a 3.16% reduction in payments for medical care in Japan, the largest cut ever. In other countries, various governmental policy measures have also been put in place to reduce medical spending. These factors, coupled with increasingly fierce competition among other companies, are expected to maintain an extremely challenging market environment. Nevertheless, we are determined to continue striving to realize higher value-added products and strengthen our manufacturing mechanism, drawing on the solid frameworks and foundations we have established thus far. We intend to expand our sales network outside Japan and strengthen our sales capabilities both at home and abroad, thereby enhancing the added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
In the Pharmaceutical Business, we will continue focusing on expanding contract manufacture and increasing the number of generic drugs. We will accelerate our efforts to develop new injectable kit preparations and work on improving products with medical error-preventive features. We will also increase our R&D efforts and expand our sales channels for oral drugs, thereby increasing our factory productivity. For Nipro's Medical Equipment and Pharmaceutical Businesses to continue advancing strongly in this ever-changing, highly challenging market environment, it is imperative that we invest greater managerial resources in all of these areas, and with greater efficiency. Accordingly, FY2006 (the year ending March 31, 2007) will feature selective and solidifying so·lid·i·fy v. so·lid·i·fied, so·lid·i·fy·ing, so·lid·i·fies v.tr. 1. To make solid, compact, or hard. 2. To make strong or united. v.intr. moves by the Nipro Group. We will use our business-specific sliding scale slid·ing scale n. A scale in which indicated prices, taxes, or wages vary in accordance with another factor, as wages with the cost-of-living index or medical charges with a patient's income. system measuring performance to reinforce our system for responsibility designation by business sector, and will make every effort to improve and secure single-year profit. We expect that the these approaches will increase Nipro's revenues and profit so as to maintain a dividend payout ratio Dividend Payout Ratio The percentage of earnings paid to shareholders in dividends. Calculated as: of 50% in FY2006 and realize satisfactory profit-sharing with all our shareholders." (Exerpts from the Nipro 2006 Annual Report to Shareholders) To download the complete Nipro 2006 Annual Report, please visit the Company's IR website at http://www.nipro.co.jp/english/index.html . About Nipro Corporation Since its founding in 1954, the Nipro Group has propelled its growth through the dedicated pursuit of technology responsive to the issues/needs of patients' quality of life (QOL QOL, n quality of life, a subjective assessment of one's emotional and physical well-being. ), as well as the issues/needs of medical practitioners, we achieved our goals through the development of original products based on our corporate philosophy of contributing to society through technology-oriented business activities. The Group is engaged in researching and developing highly functional, safe medical equipment, as well as replacement equipment and reconstruction technology for all organs and bodily systems, including artificial kidneys artificial kidney: see kidney, artificial. , hearts, lungs, pancreases, skin and blood. Our goal is to become one of the world's top manufacturers of artificial organs. The Nipro Group will also work to achieve globally competitive leadership in the pharmaceuticals sector, in terms of both quality and cost, and will aggressively expand into overseas markets. Please visit ww.nipro.co.jp/ Source: Nipro Corporation Contact: Nipro Corporation Public Relations Phone: +81-6-6375-6700 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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