Sources of Value Creation

Prescription Pharmaceutical Wholesale Business

The area logistics centers (ALCs) and regional distribution centers (RDCs) are vital distribution bases that enable the MEDIPAL Group to fulfill its role in social infrastructure. We are working to ensure reliable delivery with no stock-outs or errors, and to maintain solid distribution channels that remain in operation even during emergencies, with the aim of optimizing the supply chain as a whole.
ALCs are distribution bases for the Prescription Pharmaceutical Wholesale Business. Located close to our customers, these centers have a full line of over 20,000 items in stock, including pharmaceuticals, medical equipment, and clinical diagnostics. We deliver directly to customers, which shortens the lead time from receipt of order to delivery of goods. Construction of our 13th distribution base, the Hanshin ALC, was completed in September 2023. This completes a distribution platform for prescription pharmaceuticals covering the entire country.

Features of ALCs

^*1Inspection by individual scans: A method shortening product inspection time by switching from the conventional method of reading packing slips to scanning information for individual products from barcodes on the delivery boxes.

^*2PRESUS®: Pharmacy Real-time Support System: An all-in-one system that functions together with ALCs to conduct automatic ordering and inventory management based on demand forecasts. This system supports the various operations of dispensing pharmacies.

^*3McHIL® (Mediceo Hospital Innovative Logistics): A system that applies ALC functions and know-how to logistics in hospitals. Supports improvement of efficiency in hospital logistics operations.

^*4 Normal delivery ratio of 99.8%

Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business

PALTAC CORPORATION aims to achieve further optimization and improved efficiency across all distribution processes, from manufacturing to consumption. The company will not limit its efforts to simply reducing distribution costs, but will take a more holistic view in its investigations and work to eliminate waste in distribution processes and store operations and improve productivity at manufacturing and retail customers. PALTAC CORPORATION will continue to evolve its proprietary logistics systems, which has already established an excellent reputation both inside and outside the industry, achieving 99.999% accuracy in product delivery. The factor is the company’s 16 large-scale regional distribution centers (RDCs) located across Japan. PALTAC CORPORATION has created a database of the sales plan and sales results for 50,000 items, and applies the results of data analysis to cost rationalization initiatives, starting with appropriate production volumes at manufacturer customers right through to inventory control and product displays at retail customer stores. In this way, the company delivers high accuracy and quality solutions.

Features of RDCs

^*5SPAID (Super Productivity Advanced Innovative Distribution): A proprietary developed total-management and operation system for next-generation logistics centers based on the adoption of AI, cutting-edge robot technology, or MUPPS. This system yields twice the volume of conventional systems with the same number of workers.

A human resources strategy that harnesses the potential of our diverse employees with common values

As we work to achieve our “ideal situation” and our 2027 MEDIPAL Medium-Term Vision:“Change the Oroshi Forever: Constant Innovation”, the MEDIPAL Group considers human resources to be the source of our competitive edge and corporate value, so we are pursuing a human resources strategy linked with our growth strategy.
Our employees across the MEDIPAL Group are a diverse group of people but they share the common value of “integrity,” “morality,” and a “sense of mission.” We are executing a human resources strategy that nurtures their individual personalities, capabilities, and strengths. We actively invest in our people to identify and draw out the potential value of our human capital, and we work to orchestrate our resources as a diverse team full of potential, which will lead to sustainable improvements in corporate value.

Overview of our human resources strategy

Human resources strategy positioning

To create social value and customer value and to ensure sustainable growth for the Group, we are focusing on a human resources strategy that links with our growth strategy to achieve our ideal situation, and will reflect this in our programs. Specifically, we have defined the ideal situation for both our organization and our human resources and are developing a human resources management program to build the ideal human resources portfolio to achieve our ideal situation.
Through this, the MEDIPAL Group will continue to contribute to people’s health and the advancement of society by thinking proactively and constantly evolving, no matter what changes we face in the operating environment.

Competitive superiority of new businesses

The MEDIPAL Group’s new businesses are built on existing business infrastructure. Taking full advantage of our strengths such as a nationwide distribution platform and the expertise of our human resources, we create markets based on meeting the needs of pharmaceutical companies, medical institutions, and doctors and other medical professionals. We focus on new business activities in the areas of PFM^®, which launched in 2011, the provision of proper information by ARs, post-marketing surveillance (PMS), digital businesses that integrate face-to-face relationships with digital communication, and overseas businesses.
The competitive superiority of our new businesses lies in our ability to identify projects with potential at an early stage then put in place a business model capable of not only achieving commercial success, but also social value. We are able to do this using our keen business insight and ability to execute.

Appropriate information provision by ARs

ARs promote the appropriate use of pharmaceuticals by providing the right information to medical institutions. In addition, they use their advanced specialized knowledge to secure contracts for information collection and provision with major pharmaceutical companies and the like. ARs are also involved in distribution that requires expertise and specialization, such as for orphan drugs and regenerative medicines.

Project finance & marketing (PFM^®)

PFM^® is a business in which MEDIPAL HOLDINGS CORPORATION invests in the development of new drugs of pharmaceutical companies in order to achieve returns on investment after these drugs are launched (project finance), and sell and distribute them to medical institutions preferentially (marketing).

Post-marketing surveillance (PMS)

PMS consists of early post-marketing phase vigilance and post-marketing surveillance conducted after the sale of pharmaceuticals and medical equipment in order to ensure their quality, efficacy, and safety. The MEDIPAL Group handles a full range of contracted PMS operations from protocol design to report preparation.

Digital businesses

Having developed strong partnerships with information and communication technology (ICT) companies that possess leading technologies, we are moving forward with digital transformation (DX) of patient-centered healthcare and information provision to medical institutions.

Overseas businesses

We are steadily securing a foothold for overseas expansion. Since our investment in a Chinese pharmaceutical wholesaler in 2009, we have accumulated overseas business experience and know-how, and cultivated human resources.

Contribution of new business initiatives to business performance

Significance of PFM^® and Main Products
By supporting the development of orphan drugs, we contribute to improving the quality of life for patients and their families.

The PFM^® business model encompasses the development and stable supply of orphan drugs, thus embodying the MEDIPAL Group’s social mission of contributing to improving quality of life for patients suffering from rare diseases and their families. Going forward, we will continue to support the development and stable supply of orphan drugs, for which the number of patients is small.

Offering groundbreaking services that only the MEDIPAL Group can provide

To continue to respond to diversified social needs, we are collaborating with companies in various business fields, as well as medical institutions and local governments, to create unprecedented business models. In addition to the MEDIPAL Group’s network of pharmaceutical companies and medical institutions, we leverage our special capabilities, such as our nationwide distribution network and technology for special temperature-controlled distribution of pharmaceuticals, to develop groundbreaking services unique to the Group.

Building new business models through collaboration with companies in various fields, medical institutions and municipalities

Main Initiatives in Building Partnerships

• 2006 –
  Improving the efficiency of medical care

  We entered into a capital and business alliance with Medical Data Vision Co., Ltd. in 2006. We began joint operation of the medical information portal site “Clinical Cloud” with Medical Data Vision subsidiary Doctorbook INC. in 2019.

• 2016 –
  Improving health

  We entered into a capital and business alliance with MTI Ltd. We are working to increase market share by expanding MTI’s “Luna-Luna Medico” service, which connects women with physicians, and the maternal and child health handbook app “Boshi-mo.”

• 2019 –
  Stable supply of pharmaceuticals

  We entered into a capital and business alliance with Mitsubishi Logistics Corporation. We aim to establish an optimal pharmaceutical distribution system covering all processes from the time products leave the manufacturer’s facility until they reach patients.

• 2020 –
  Integration of distribution functions

  We entered into a strategic business alliance agreement with H.U. Group Holdings, Inc., in the medical and healthcare sectors.

• 2020 –
  Enhancing productivity throughout the supply chain

  We are engaged in a joint initiative with major dispensing pharmacy groups and drugstores with the aim of creating a new pharmaceutical distribution model to support achievement of the SDGs.

• 2022 –
  Pharmaceutical development overseas

  MEDIPAL and JCR Pharmaceuticals Co., Ltd. have executed a memorandum granting exclusive negotiation rights for the global commercialization outside Japan of four new drug candidates being developed by JCR Pharmaceuticals Co., Ltd. for ultra-rare diseases.

Aiming to develop new digital platforms for better health for all

Building Digital Healthcare Platforms

Our digital healthcare solutions, which integrate face-to-face relationships with digital communication, in the medical and healthcare sectors provide numerous services that benefit not only medical institutions but also the health of patients and the general public. The trend toward the use of digital technology in medicine and personal health monitoring is expected to accelerate. We are focusing on building digital healthcare platforms to make the MEDIPAL Group a player in that area.

Boshi-mo, Luna Luna Medico, CARADA online medical consultation, and CARADA electronic medication history system Solamichi are services provided by MTI Group. Clinical Cloud is a service provided by Doctorbook INC.

Actively investing to create business synergies through corporate venture capital

We jointly established MEDIPAL Innovation Fund with SBI Investment Co., Ltd.