Business description

The Group’s segments are categorized based on the business of their operating companies, thus, its main segments, the Pharmaceutical Wholesale Business, the Pharmacy Business, and the Veterinary Drug Wholesale Business comprise the Group’s reportable segments.

Pharmaceutical Wholesale Business

Business Model

By delivering medicines and other necessary products and services to local people through medical institutions, pharmacies, nursing care facilities, etc., we form an optimal distribution model for each community to fulfill our role as a key part of social infrastructure protecting the health of communities.

製薬企業→当社グループ→病院・診療所、薬局→患者様

Business Operations

VITAL-NET,INC. KSK CO.,LTD.
Logistics cente 4 3
Branch offices and sales offices 51 32
Customers Approx. 20,000 Approx. 22,000

Related Group Companies

Company name Business description
VITAL-NET,INC. Sale of pharmaceuticals, poisonous or deleterious substances, narcotics, quasi-drugs, medical equipment, sanitary materials, hygiene goods, nursing care products, beverages, etc.
KSK CO.,LTD. Sale of pharmaceuticals, quasi-drugs, medical devices, test reagents, agricultural chemicals, epidemiological agents and materials (for the prevention of infectious diseases), industrial chemicals, chemicals for scientific use, veterinary drugs, poisonous and deleterious substances, paints, pigments, dyes, regenerative medicine products, and other chemicals, etc.
Finese Co., Ltd. (Equity-method affiliated company) General wholesale of medical pharmaceuticals, clinical test reagents, veterinary drugs, medical devices, vaccines, sanitary materials, serums, etc.

Strengths of the business

1. Regional networks

As a community-based company, we build strong networks with medical institutions, pharmacies, local governments, doctor/medical professional associations, and pharmacist associations.

2. Diverse human resources

We foster high ethical standards, professional expertise, communication skills, and a spirit of challenge, and work to create workplaces where women can work comfortably.

3. Group’s collective strength

We leverage the Group’s comprehensive strength in collaboration with the pharmacy business and nursing care-related businesses within the VITAL KSK Group.

Seizing growth opportunities

  • Increased sales to hospitals
  • Expansion of 3PL business through GDP response
  • Sale and rental of COVID-19-related products
  • Increasing sophistication and efficiency of operations through DX

Measures to address risks

  • Establishment of a Risk and Compliance Committee
  • Formulating an Information Security Policy
  • Installation of in-house power generators, Business Continuity Planning (BCP)
  • Partnership agreements with local governments in readiness for disasters

Pharmacy Business

Business overview

We operate pharmacies with a range of functions, leveraging the logistics functions cultivated in the pharmaceutical wholesale business, which is the VITAL KSK Group’s core business, as well as our sales capabilities and expertise rooted in local communities.

Compliance with Pharmaceuticals and Medical Devices Act amendments

Remote medication guidance

Completion of clean bench

Installation of medication lockers

Business operations

OHNO CO.LTD Goodneighbor Kenkodo Yakkyoku Tenno Hoken Chouzai Center
Number of stores 55 23 9 1

Number of Stores by Region

Tohoku Kanto
Akita 3 Saitama 5
Yamagata 3 Tokyo 3
Miyagi 61 Chiba 3
Fukushima 9 Kanagawa 1

Related group companies

Company name Business description
OHNO CO. LTD. Pharmacy operation and sale of pharmaceuticals, medical devices and equipment, and sanitary materials, etc.
Goodneighbor Inc.
Kenkodo Yakkyoku, G.K.
Tenno Hoken Chouzai Center Inc.

Strengths of the business

1. Community-based

As a community-based pharmacy business, we operate stores in various locations such as hospitals and clinics that can handle a variety of prescriptions.

2. Advanced functions

We acquire certifications for pharmacies affiliated with specialized medical institutions and local healthcare facilities to tackle various health issues.

3. Comprehensive strength

We leverage the Group’s comprehensive strengths to build an efficient, high-quality pharmaceutical supply chain.

Seizing growth opportunities

  • Strengthening M&A and store openings, primarily in urban areas
  • Sale of specialty drugs
  • Responding to growing needs for home medical care
  • DX for online drug administration guidance, etc.

Measures to address risks

  • Improving productivity through automation and mechanization
  • Improving business management by closing unprofitable stores
  • Strengthening compliance by conducting internal audits
  • Establishing drug supply systems in the event of a disaster

Veterinary Drug Wholesale Business

Business Model

AGRO-JAPAN,INC. has been advancing the separation of sales and logistics from an early stage, delivering products through transportation carriers, and providing proposals and information via sales representatives. As a result, we have achieved improvements in the quality of both logistics and sales activities. Going forward, we will improve the quality of our distribution division and establish an improved business model for existing customers.

製薬企業→当社グループ→動物病院・畜産業者・獣医師、ペットオーナー・畜産製品消費者(新たなビジネス領域)

Market Environment

In Japan, increases in the number of pets and consumption of livestock products are unlikely due to the declining population. In the livestock sector, an increase in business closures is also expected due to aging of employees and the absence of successors. In the future, it is expected that the development of products utilizing DX to reduce labor and improve productivity will become more active. Changes in consumer awareness and behavior are also expected, such as in treating pets as members of the family and growing needs for ethical foods.

Related Group Companies

Company name Business description
AGRO-JAPAN,INC. Veterinary drug wholesale business

Strengths of the business

1. Community-based

Although the livestock industry is susceptible to natural environmental impacts, it is possible to make proposals tailored to each community, through community-based business development.

2. Food safety and security

By supporting livestock farmers, we contribute to the safety and security of food, which is a key element for human health.

3. Healing through pets

Prevention and treatment of various pet diseases through the provision of veterinary drugs leads to better health for pets, which also helps people’s hearts and minds.

Seizing growth opportunities

  • Commercialization of consultancy services
  • Expansion into general food products and development of fields such as meat substitutes
  • Considering global business
  • Participation in pet food business

Measures to address risks

  • Installation of GPS in sales vehicles
  • Outsourcing of storage work to in-house power generator installation contractors
  • Introduction of diesel engine vehicles (as a response to gasoline shortages in the event of a disaster)

Other Businesses

Medical management consulting business

Providing consulting services for medical institutions such as hospitals, nursing care providers, and local governments

In addition to pharmacy business, Health Care Management Institute, Ltd. provides consulting services to medical institutions, nursing care providers, and local governments.

In hospital consulting, our main clients are special-function hospitals, public hospitals, and private hospitals. We support the reconstruction of hospitals that meet the medical needs of each community, the introduction of hospital information systems, and the acquisition and renewal of certifications for evaluations of hospital functions, based on the community medical care concept. In terms of supporting the acquisition and renewal of certifications for evaluations of hospital functions, in addition to obtaining functional evaluations, we also provide full support through the preparation of manuals and mock examinations in anticipation of the day of the inspection, with the aim of ensuring the improvement of the quality of medical care in relation to medical safety and infection control, etc.

In local government consulting, we support the efforts of local governments through a variety of survey work, support for the establishment of short-term medical admission offices, and human resources development projects. In the human resources development business, we support the operation of training and seminars, and support the efforts of local governments. We work together with local government officials to solve human resources development issues within each local government body by fostering the next generation of managers, improving the skills of medical and nursing care workers, and promoting medical and inter-job collaboration. We do this through our next-generation nursing care business management support projects, training for workers on community-based comprehensive care systems, and training for improving the skills of nursing care workers.

Agricultural chemicals wholesale business

Protecting food safety and security, and supporting sustainable agricultural production in response to changing social conditions

Social interest in agriculture—such as food safety and security, and environmental issues—is growing significantly.

Agrochemicals (pesticides and herbicides, etc.) play a major role in protecting crops from pests and weeds, improving quality, saving labor for producers, improving efficiency, and ensuring stable agricultural production. In recent years, with the widespread sale of aerial drones, methods of utilizing agrochemicals, such as in optimizing pesticide control, have become very diverse. VITAL-GREEN,INC. values producer perspectives and community-based relationships, and supports safe production by responding to advanced agricultural technologies as a specialist in agrochemicals. We also offer agricultural experience programs for local consumers to see how crops grow. We are also engaged in activities to inform people more about food.

Parent-child farming experience
(edamame, young soybeans)
We also support smart agriculture using drones, etc.

Related Group Companies

Company name Business description
Health Care Management Institute Ltd. Medical management consulting
VITAL-GREEN, Inc. Wholesale of agricultural chemicals and agricultural materials, etc.
VITAL-CARE, Inc. Nursing care-related business (home care support, home-visit nursing care, outpatient care, rental and sales of welfare equipment, etc.)
Tanpopo Co., Ltd. Welfare and nursing care-related business (rental and sales of welfare equipment, home modification)
VITAL-EXPRESS, Inc. General freight vehicle transportation
DAISHIN CO.,LTD. General freight vehicle transportation
PREARC,INC. Insurance agency, real estate management, and parking lot operation