In May of this year, Japan Medical Dynamic Marketing Inc. will celebrate its 50th anniversary. We are very grateful to everyone who has supported our company.
Looking back on our history, we started our business in 1973 and later expanded by importing and selling bone fracture treatment products from the U.S. In 1994, we entered the U.S. market, the largest market in the world, as an artificial joint manufacturer, and began to implement our corporate philosophy of “contributing to healthcare” in the United States.
In 2012, with the desire to provide Japanese patients with treatment options suited to the skeletal structure of Japanese people, we began transforming our business model from a trading company to a manufacturer by strengthening our capabilities as a producer of bone fracture treatment materials and spinal fusion devices.
In 2021, we also entered the business of manufacturing and selling artificial joints in China as a new strategy to expand into overseas markets, and we are promoting various initiatives to achieve our vision of “contributing to healthcare” in China as well.
Meanwhile, during the past few years, not only our lifestyles but also the field of medical care has drastically changed due to the novel coronavirus infection. In addition, there have been various changes in the business environment for our group of companies, such as supply chain problems caused by the outbreak of the Ukraine-Russia conflict and the rapid depreciation of the yen due to the difference in interest rates between Japan and the U.S. Despite all these challenges, I am very pleased that we have reached our 50th anniversary milestone.
Going forward, we expect the market environment surrounding the medical equipment industry in Japan will continue to be severe due to reductions in reimbursement prices of specified insured medical materials, etc., due to financial resource issues connected to social security-related expenses.
In the U.S. and China, where we have already established a presence, the orthopedic medical device market is expected to expand over the medium to long-term. This growth will be driven by the continued increase in the elderly population, as is the case in Japan. It is estimated that by 2025, when all baby boomers will be 75 years old, the population aged 75 and over will account for about 18% of the total population. By 2040, the population aged 65 and over will account for about 35% of the total population.
Considering this business environment, our Group has formulated a medium-term business plan, “MODE 2023,” which covers the three-year period from the fiscal year ending March 31, 2022 through the fiscal year ending March 31, 2024. MODE 2023 was established to guide us in contributing to patients’ quality of life by providing services (implants, surgical instruments, surgical navigation systems, etc.) to medical institutions in a timely manner with a high level of expertise. The plan calls for our Group to respond to various medical needs, such as improving treatment outcomes, and providing services that contribute to enhancing treatment value (improving the profitability of treatment by enhancing safety, effectiveness, and shortening hospital stays). the medium-term business plan, we will also continue to implement measures that maintain and improve profitability.
In addition, we will strive to create an attractive and appealing Group of companies by addressing materiality and sustainability issues in a company-wide effort for the benefit of all stakeholders.
We will continue pursuing our mission of contributing to society by “contributing to healthcare,” and we look forward to your continued guidance and encouragement in the years ahead.
Representative Director and President Toshiyuki Hironaka