Japan's NSSK buys Sakura pharmacy chain

Kraft is best known for its Sakura pharmacies, which number 900 nationwide, mainly in densely populated areas such as metropolitan Tokyo and the Kansai and Tokai regions. It also offers medical and nursing services in cooperation with doctors, nurses and care workers, with a view to promoting a “community-based integrated care system.” It was founded in 1982.

The offering includes visits to patients’ homes to explain the medicines delivered to them, as well as online medication guidance. The latter is said to allow pharmacists and customers to complete the entire process – from examination to receipt of the prescription – without either leaving home.

In 2020, the company rolled out an artificial intelligence-based pharmacist support tool in cooperation with IBM Japan. It is said to reduce the need for confirmation of prescriptions and customer inquiries. Annual group sales amount to JPY 170bn (USD 1.1bn), according to a statement.

NSSK plans to reform and expand management with a more robust profit structure; the company has confirmed a mismatch between operating cash flow and interest-bearing debt. This effort will involve various environmental, social, and governance (ESG) activities, including new labour management systems.

The GP will support new store openings, develop corporate branding, and strengthen operations with a view to improving social returns, which in turn are expected to increase sales.

NSSK’s previous experience in healthcare includes nursing care provider Vati, which it acquired in 2016 and exited in 2020 for an undisclosed sum after expanding the footprint via an algorithmic tool for identifying optimal locations. It invested Welfare Suzuran, another nursing home player, in late 2019.

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• Topics
• North Asia
• Healthcare
• Buyouts
• Japan
• NSSK
• Pharmaceuticals