Japan Medtech/Service Sector: JACLaS EXPO 2026 feedback

Visits to related companies at JACLaS EXPO 2026, held on 8-10 October. With management at H.U. Group Holdings, we had the opportunity to discuss blood test reagents for Alzheimer's disease. We believe there is a risk of a negative short-term impact from a competitor obtaining FDA approval, but over the longer term, we expect sales of the company's reagents to expand steadily as panel testing becomes more widespread. Sysmex is pushing ahead with the introduction of new services that utilise data and AI, but we think the overall picture is somewhat unclear at present and that the near-term earnings impact will be small. FUJIFILM Holdings' IVD business is not large in terms of sales, but it is a highly profitable business with an OP margin of more than 20% (FY3/24-26 actual), and we are monitoring the US launch of liver cancer markers over the longer run. H.U. Group Holdings obtained the first US approval in May 2025 for a reagent measuring the pTau217 to beta-amyloid 1-42 ratio;