Global Ambition Unleashed: Asahi Kasei's Medical Vision Built from Hemodialysis

According to VCBeat’s 2021 industry report on hemodialysis, “Surging Demand and the Rise of Domestic Brands,” approximately 3.7 million patients worldwide were receiving regular dialysis treatment by the end of 2020, representing a 3% increase compared with 2019. The global dialysis market size reached €82 billion in 2020, with an annual growth rate of 4%.

From a therapeutic perspectiveHemodialysis works by diverting blood from the body to an external circuit, where a dialyzer removes metabolic waste products and excess fluid before returning the purified blood to the patient, thereby substituting for failed kidney function. This is a high-frequency, ongoing treatment regimen, requiring patients to undergo three sessions per week, each lasting approximately four hours.

From an industry perspectiveThe hemodialysis industry chain is clearly segmented into upstream products, midstream distribution, and downstream services. The upstream product segment primarily includes equipment, consumables, and pharmaceuticals. High-end medical devices such as hemodialyzers and hemodialysis machines have high technical barriers, and the domestic market has long been monopolized by foreign companies. Broadly speaking, apart from first-tier European and American enterprises such as Fresenius, B. Braun, and Gambro (Sweden), the second tier is firmly dominated by numerous Japanese companies.

It is well known that Japan leads the world in hemodialysis treatment, as evidenced by its high treatment rates, superior therapeutic outcomes, and advanced patient age at dialysis initiation. This leadership is underpinned by a comprehensive dialysis service system and high-quality dialysis equipment.

AMC is a representative company in the Japanese dialysis market.In the mid-1970s, it developed Japan’s first hollow-fiber dialyzer. Currently,Its dialyzers hold a 30% share of the Japanese market, meaning that nearly one in every three patients using dialyzers in Japan is using an Asahi Kasei dialyzer.

However, AMC is not limited to dialyzers; it leverages its core technologies to expand into areas such as plasma purification, virus filters, and bioengineering.Especially in the field of bioengineering, the virus removal filters produced and sold by the company are world-leading. The representative product, Planova, is the world’s first virus filter used for biopharmaceuticals and blood products.

In the new century, under the strategic deployment of its controlling parent company, Asahi Kasei Corporation, Asahi Kasei Medical (AMC) will collaborate with the Group’s business companies in the pharmaceutical and intensive care sectors to jointly realize the Group’s strategy of transforming into a global healthcare enterprise.

This article will introduceAMCbusiness progress, and the underlyingAsahi Kasei CorporationA Broader Vision for Healthcare.

AMC is a business unit of Asahi Kasei Corporation, primarily focused on the development, production, and sales of medical products.In 1974, Asahi Kasei Medical (AMC) was established and began manufacturing hollow-fiber dialyzers, marking the official entry of Asahi Kasei Corporation into the medical business. Its development stages are outlined in the table below.

Development History Source: AMC Official Website

Overall, AMC has formed three major business segments:Blood purification business (including hemodialysis and therapeutic apheresis), bioprocess business, and blood transfusion-related business。

Asahi Kasei’s dialysis business was the earliest to launch, originating with the establishment of Asahi Kasei Medical (AMC).In 1974, Asahi Kasei Medical (AMC) leveraged Bemberg fiber technology to develop hollow-fiber dialyzers, thereby launching its business in the field of dialysis. Subsequently, in response to a broader range of dialysis needs, the company implemented technological upgrades focusing on three key areas: dialyzer materials, housing structure, and treatment methods.

Currently, the flagship products in the dialysis business include four series of dialyzers—APS, REXEED, VIE, and Leoceed—as well as dialysis-related products such as needle sets and blood purification tubing.

Its dialyzers hold a significant market share in Japan. In an interview, the president of Asahi Kasei Medical (AMC) stated that the company has cumulatively sold 500 million filters to date, meaning that one in every three patients in Japan uses a dialyzer from AMC. Furthermore, the company provides its products to patients in more than 70 countries and regions worldwide.

In the field of plasma purification (apheresis), Starting in the late 1970s, Asahi Kasei Medical (AMC) launched its business in plasma purification. Approximately a decade later, the company developed plasma component separators and plasma adsorption technologies capable of selectively adsorbing and removing pathogenic substances.

AMC primarily offers products for plasma exchange therapies (PE/DFPP/PA) and continuous renal replacement therapy (CRRT). Currently, it manufactures and markets blood purification products for over 30 diseases, including consumables such as membrane-type plasma component separators, selective plasma component adsorbers, and continuous slow hemofilters, as well as equipment like blood purification devices.

Main Products Source: AMC Official Website

In the field of bioengineering, AMC primarily develops products for removing viruses in the production of plasma-derived preparations and biopharmaceutical products. Among these, its flagship product, Planova, was a world-first when it launched in 1989. It is a filter specifically designed to remove viruses from biological products, offering high protein throughput while maintaining a high flow rate that prevents viral passage.

In 2009, the company launched Planova BioEX, designed to meet higher flow rates and filter high-concentration protein solutions, thereby enhancing virus retention capabilities. Leveraging the performance and quality of its products, Asahi Kasei Medical (AMC) has established itself as a global leader in virus removal filters, securing a significant share of the global market.

In blood transfusion-related businesses, AMC primarily manufactures the Sepacell series of leukocyte removal filters for use in blood transfusions. Made from polyester nonwoven fabric, these products are designed to remove white blood cells that can cause transfusion-related adverse reactions such as fever and infection.

This product is designed for specific blood bag suppliers and is not supplied directly to other medical institutions. Since its launch in Europe in 1985, Sepacell has been widely used across various regions worldwide, with cumulative sales reaching 300 million units. Asahi Kasei Medical (AMC) stated that the product ensures the safety and quality of transfusion products and has been adopted by the world’s leading IV bag manufacturers.

The production of the first dialyzer by Asahi Kasei Medical (AMC) in 1974 marked Asahi Kasei Corporation’s formal entry into the medical sector. In the subsequent years, AMC underwent several business integrations under the strategic influence of Asahi Kasei Corporation.

In 2003, Asahi Kasei Corporation completed its structural reorganization, establishing a group structure centered on the holding company, Asahi Kasei Corporation, and seven operating companies (Chemicals, Housing, Pharmaceuticals, Fibers & Plastics, Electronics, Construction Materials, and Life & Living).As a core business unit within the Asahi Kasei Corporation group, Asahi Kasei Medical (AMC) conducts business related to medical device products.

AMC’s dialyzer business has advanced rapidly, quickly achieving technological upgrades to establish product advantages. Behind this strong startBenefiting from the technical expertise of Asahi Kasei Corporation, our parent company, in the fields of fibers and chemicals.

Asahi Kasei Corporation is a renowned chemical company in Japan, initially engaged in the production and sale of industrial chemicals and derivatives such as ammonia, nitric acid, cellulose fibers, and rayon. In its chemical business, Asahi Kasei Corporation has accumulated core technologies including hollow fiber membranes, nonwoven fabrics, and biocompatible materials. These technologies have facilitated the development of Asahi Kasei Medical (AMC) in the field of dialysis.

Following its dialysis business, Asahi Kasei Medical (AMC) has continued to expand the application scope of its membrane separation and adsorption separation technologies to enhance plasma purification-related therapies and ensure transfusion safety.This has given rise to three major business segments: blood purification, bioengineering, and transfusion-related services.

Among these, in the early stages of the Group’s foray into the medical field, Asahi Kasei Medical’s (AMC) dialysis business laid a solid foundation for its healthcare operations. Over the past decade, AMC’s bioengineering-related businesses have grown rapidly, becoming one of the primary drivers of growth in the Group’s healthcare sector.

In the 21st century, Asahi Kasei Corporation proposed the corporate vision of “Care for People, Care for Earth.” Guided by this vision, the company implemented thorough portfolio management of its group subsidiaries to optimize resource allocation and generate greater synergies, thereby establishing three core business domains: Materials, Homes, and Health Care.

 Source: Asahi Kasei Corporation 2020 Annual Report

Under the new group strategy, Asahi Kasei Medical (AMC) naturally falls within the Healthcare business segment. In addition to AMC, this segment includes Asahi Kasei Pharma and Veloxis Pharmaceuticals, which are responsible for drug development, as well as ZOLL Medical, which focuses on acute and critical care.

Asahi Kasei Pharma primarily provides pharmaceuticals and diagnostic reagents.The company is R&D-centric, focusing on the development of new drugs in the fields of pain management, musculoskeletal disorders, and critical care medicine.

Veloxis PharmaceuticalsIt is a U.S.-based pharmaceutical company acquired by Asahi Kasei Corporation in 2019, specializing in immunosuppressive drugs. Its current flagship product is the prescription medication ENVARSUS XR, which helps patients prevent organ rejection following transplantation.

ZOLL MedicalIts core business is the development of critical care equipment and systems. In 2012, ZOLL Medical was acquired by Asahi Kasei Corporation, officially becoming a member of the group. Its product portfolio covers defibrillation and cardiac monitoring, circulatory augmentation and cardiopulmonary resuscitation (CPR) feedback, transcutaneous oxygen therapy, data management, ventilation, and therapeutic temperature control.

According to the annual report, Asahi Kasei Corporation’s healthcare segment saw significant growth in 2020 compared with 2019, with net sales increasing by approximately 20.75% and surpassing the JPY 400 billion mark.

Source: Asahi Kasei Corporation 2020 Annual Report

Among them, ZOLL Medical contributed the most to sales revenue, while Asahi Kasei Medical (AMC) ranked second. The pharmaceutical business currently remains relatively small in scale.

Viewing the healthcare business within the context of the group’s overall operations, the sales proportion of healthcare-related businesses increased from 8% to 17% between 2011 and May 2021, while operating revenue rose from 8% to 25%.

Source: Asahi Kasei Corporation Official Website - Healthcare Business Briefing

Additionally, according to Asahi Kasei Corporation’s healthcare business briefing data, the compound annual growth rate (CAGR) of its healthcare business over the past 10 years has been 13%.It is evident that healthcare has become the group’s most dynamic growth driver.

Asahi Kasei Corporation aims to accelerate its transformation into a global healthcare company engaged in pharmaceutical and medical device businesses. Healthcare will become one of the three core business pillars, alongside Materials and Homes, serving as a key growth driver for the Group.

Accelerating Business Growth Through M&A

Across global multinational healthcare enterprises, mergers and acquisitions (M&A) have always been a key strategy for globalization. Over the past decade, Asahi Kasei Corporation has also undertaken multiple M&A transactions in the fields of medical devices, pharmaceuticals, and critical care.

Source: Asahi Kasei Corporation Official Website - Healthcare Business Briefing

These mergers and acquisitions have strengthened Asahi Kasei Corporation’s capabilities in the healthcare sector. For instance, data show that the acquisitions of ZOLL Medical in 2012 and Veloxis Pharmaceuticals in 2019 significantly drove performance growth in the healthcare segment.

M&A Strategy to Remain a Key Focus. Asahi Kasei Corporation will actively pursue business development activities—including mergers and acquisitions, equity investments, debt financing, and licensing—in four key areas: critical care, pharmaceuticals, bioengineering, and new medical technologies.

Consolidate and Strengthen the Foundation of Existing Business

In the critical care sector, ZOLL Medical will continue to expand its existing cardiopulmonary care business and extend into adjacent markets. While ZOLL Medical’s primary market is the United States, the company is actively strengthening its presence in the intensive care field across Europe and Asia.

In the pharmaceutical sector, the Group will leverage the business platforms of Asahi Kasei Pharma and Veloxis Pharmaceuticals to expand its product portfolio, with a focus on therapeutic areas such as critical care, immunology/transplantation, and orthopedics. The company aims to achieve pharmaceutical sales of JPY 150 billion in fiscal year 2025 and reach a target of JPY 200 billion by fiscal year 2030.

Asahi Kasei Medical (AMC) maintains a stable supply of dialyzers while strengthening its plasma purification-related therapeutic business. Furthermore, the company is committed to expanding its bioprocessing business to ensure the safety and production efficiency of biologics. This segment represents one of the strategic pillars for the continued growth of both AMC and the Asahi Kasei Group’s healthcare operations.

Overseas Business, with a Focus on the U.S., European, and Chinese Markets

Asahi Kasei Corporation has seen its sales in the healthcare sector grow more than sixfold over the past decade, with nearly 80% of this growth driven by overseas markets. The proportion of overseas revenue in its healthcare business rose from 24% in 2011 to 77% in 2020.

In Asahi Kasei Corporation’s regional strategy for fiscal year 2025, the Japanese market will serve as a foundation for sustaining stable and profitable growth; furthermore, the Group will prioritize expansion in the United States, Europe, and China, leveraging established business platforms to unlock further opportunities for growth and development.

Increase Resource Investment and Leverage Digital Technology for Innovation

To facilitate the transformation of its global healthcare business, Asahi Kasei Corporation has prioritized resource allocation to the healthcare sector. In addition to giving precedence to managerial resources, the company has significantly increased R&D investment to support the global expansion of its pharmaceuticals and medical devices. For instance, in fiscal year 2020, Asahi Kasei Corporation’s annual R&D expenditure totaled JPY 89.7 billion, with the healthcare segment accounting for the largest share at 44%.

Furthermore, Asahi Kasei Corporation is advancing digital transformation (DX), having structured its DX initiative into four phases with defined content for each. During the introduction phase, the Group launched approximately 400 projects in the areas of materials informatics (MI), production technology innovation, intellectual property, and digital marketing, thereby fostering cross-departmental collaboration through DX. Currently, efforts are underway to accelerate the rollout of DX across the entire Group.

Final Thoughts:In 2022, Asahi Kasei Corporation is set to celebrate its 100th anniversary. Is the vision of “Care for People, Care for Earth” merely a grand aspiration? Can the transformation of a global healthcare enterprise be realized? It is up to Asahi Kasei Corporation to provide answers through strategic planning, concrete actions, and business development, step by step.