Long-Term Vision

Beyond medicine, beyond barriers
Innovating the future of medical care by being a “connector”

Guided by our corporate philosophy of “contributing to the realization of a healthy and prosperous society,” the VITAL KSK Group has been working with the local community—in cooperation with medical institutions, pharmacies, nursing care facilities, and local governments—to resolve healthcare issues, which vary by region.

Using our strengths as a “connector,” built up over many years, we are now taking a new path: innovation for the future of healthcare.

Responding to Changing Environments

While continuing to emphasize the three values of trust, challenge, and cooperation, we will make bold, flexible changes to our organization, without being constrained by the same approach and ways of thinking. By doing this, we will respond to changes in the social and business environment and work as a group to achieve sustainable development in society and sustainable growth for the VITAL KSK Group as we improve corporate value.

Eight Areas of Activity

Upgrading logistics

Growing 3PL business nationwide

Given the increase in drugs that required sophisticated temperature control, we are strengthening our supply chain, aiming to be the pharmaceutical wholesaler that is chosen by pharmaceutical manufacturers. We will also grow the 3PL business nationwide, transcending regional boundaries.

Overhaul of the wholesale pharmaceutical business segment

Optimal business strategies in each business area

With urban centers becoming overpopulated, we will intensively invest resources to expand our share of large markets, focusing on metropolitan Tokyo and the Kyoto–Osaka–Kobe region. At the same time, in rural areas, we will develop an efficient distribution system through low-cost operations to support the consistent supply of pharmaceuticals.

Growth of medical product sales

Further involvement in healthcare

We created professional MAPS* sales staff who are experts in hospital treatments, drugs, devices, diagnostics, etc. to tap into the continually growing therapeutic device market. By looking not only at drugs but also at related business opportunities, we will step up our involvement in healthcare initiatives.
*MAPs: Medical Assist Partners

Enhanced life support

Parenting support and disease prevention

There is a clear need to develop a work environment where every employee can enjoy good health and demonstrate their full skills now that there is increasing employment for the elderly and the empowerment of women. As a corporate group in the healthcare industry, in addition to our own internal initiatives, we will provide services to other companies in the regions where we operate to help individuals lead healthy, full lives.

Strengthening rental businesses

For both medical institutions and companies

We will take on products that are different from those we have handled in the past, such as medical equipment, home appliances, and power generators then make these products available as part of the management support we offer to customers. Recently, there is also growing demand for rentals among local governments and companies as well as medical institutions. We see this as a huge opportunity and will work to keep strengthening rental businesses.

Expansion of the pharmacy business

Changes to the way medications are picked up

Even in outpatient settings, requirements for pharmaceutical specialists who can handle therapeutic drugs have increased. Moreover, with remote medication guidance and drug delivery services becoming more widespread, the way in which pharmacies and pharmacists interact with patients has also changed. We will improve specialist services to ensure that patients take drugs safely as we continue operating a network of pharmacies that provide convenient services that meet the diverse needs of local residents.

Cooperation with central and local governments

Contributing to extending a healthy life expectancy

The relationships of trust we had built up with local governments were useful for COVID-19 vaccine deliveries and operating large vaccination centers. To strengthen these relationships of trust even more we will improve our cooperation with central and local governments while participating in businesses that help extend local residents’ healthy life expectancy.

Business growth in service animals and agricultural technology

Market expansion and new business development

As a veterinary drug wholesaler, we sell drugs to ranchers and veterinary hospitals, mainly in Hokkaido, Tohoku, and Niigata Prefectures. At the same time, we have also taken advantage of the recent pet boom and have developed sales channels and product sales in the service animal field. As an agrochemical wholesaler operating in Niigata Prefecture, we have contributed to the development of smart agriculture through initiatives such as the early adoption of drones to combat farm labor shortages. Going forward, we will continue contributing to DX (digital transformation) in the agricultural sector, supporting the food that is the source of health.

Vision for 2035

Aiming to improve ROE by driving the growth
of businesses related to healthcare

With the year 2025 just around the corner, restrictions on social security payments and revisions to the system in anticipation of structural changes in society are expected to continue as the baby boomer generation is in the later stages of life. In the wholesale pharmaceutical business segment, our Group’s core business, overall market growth is expected to be limited despite steady demand, mainly due to successive drug price revisions. Currently, the wholesale pharmaceutical segment accounts for 94% of the Group’s sales and 83% of operating profit. Even if market growth in this segment is slow, we believe that we need to strengthen initiatives for new business in other healthcare-related fields. As well, we need to significantly change the structure of sales and operating income in order to grow steadily as a company and increase our corporate value. In our newly formulated Long-Term Vision 2035, we have set out a roadmap for changing our ratio of sales to 80% from wholesale pharmaceuticals and 20% from the healthcare-related segment by 2035 as well as increasing the percentage of operating profit from the healthcare-related business segment to 40%.

Sales composition

Operating profit composition