August 30, 2019
CMIC HOLDINGS Co., Ltd.
Notice Concerning Direction for Integration of Consolidated Subsidiaries along with Change in Corporate name
In a meeting of the Board of Directors held today, the Company resolved to reorganize the Healthcare business and integrate its wholly-owned subsidiaries Site Support Institute Co., Ltd. (hereinafter referred to as "SSI") and CMIC Healthcare Co., Ltd. (hereinafter referred to as "CMIC Healthcare") on January 1, 2020, along with the changing corporate name of the surviving company.
1. Purpose of Integration and Overview
In recent years, we are undergoing tremendous changes in the business environment of healthcare sectors. In pharmaceutical industry too, we start to see initiatives going beyond the development of pharmaceutical drugs and into the arena of prevention, diagnosis and treatment of diseases via utilization of technology to provide total support to personal health.
Coping with such changes in the business environment, CMIC Group has included “Creation of healthcare business” as one of the key focuses in our Mid-term management plan for fiscal year 2019-2021 set in November 2018. We are promoting our supporting services to help medical institutions, patients and general consumers on medical services provided, as well as maintenance and promotion of better health.
As a pioneer in the SMO industry, SSI supports pharmaceutical drug development through the network of 2,300 medical institutions nationwide. Meanwhile, CMIC Healthcare runs a medical call center and provides medication adherence support services. In addition, CMIC Healthcare also focuses its effort in commercializing new healthcare business such as providing “SelCheck” as a self-checkup service contributing to early discovery and prevention of disease worsening, operating “harmo” electronic prescription record service, and running joint research programs on healthcare IoT devices.
Through this integration, we anticipate the fusion of various information and know-how accumulated at SSI via its SMO business, as well as the disease prevention, health information and IT technology in the hands of CMIC Healthcare, which would lead us to further acceleration in CMIC Group’s healthcare business.
As for merger scheme, Absorption-type merger wherein SSI will be the surviving company would be adopted, and the tentative plan is to change corporate name from SSI to CMIC Healthcare concurrently with the merger. Details will be announced at a later date upon final decision.
2. Overview of the Operating Companies
|Surviving Company||Absorbed Company|
|(1) Trade name||Site Support Institute Co., Ltd.||CMIC Healthcare Co., Ltd.|
|(2) Location||1-1, Shibaura 1-chome, Minato-ku, Tokyo||1-1, Shibaura 1-chome, Minato-ku, Tokyo|
|(3) Name and title of representative||Representative Director, President and CEO,
|Representative Director, President and CEO,
|(4) Main businesses||Healthcare Business
・SMO (Site Management Organization) Business
・Healthcare information services
|(5) Capital||99 million yen||100 million yen|
|(6) Date established||April 2 1999||June 2 2003|
|(7) Accounting term||September 30||September 30|
|(8) Number of employees
(As of the end of June 2019)
|approx. 760||approx. 110|
|(9) Shareholders and holding ratios||Wholly-owned subsidiary||Wholly-owned subsidiary|
3．Change in corporate name of the surviving company (tentative)
|(1) New corporate name||CMIC Healthcare Co., Ltd.|
|(2) Date of change to new corporate name||January 1, 2020 (tentative)|
Because the merger is between consolidated subsidiaries, there is expected to be little impact on consolidated performance this fiscal year.