Nihon Kohden Malaysia applies for a medical device manufacturer license

Nihon Kohden Corporation announced today that Nihon Kohden Malaysia Sdn. Bhd., one of its subsidiaries, has decided to apply for a manufacturer license for medical devices in Malaysia. In line with the Company’s business goal to expand business in emerging markets, production in Malaysia will speed up product supply.

 

1. Background and Purpose
In its mid-term business plan, Strong Growth 2017, Nihon Kohden aims to strengthen operations in emerging markets where the healthcare infrastructure has developed together with rapid economic growth. The Company currently manufactures widely-used medical devices such as ECGs, patient monitors, and hematology instruments for emerging markets at Shanghai Kohden Medical Electronic Instrument Corp., one of its subsidiaries in Shanghai, China, as well as at Tomioka factory in Gunma Prefecture, Japan. The Company decided to strengthen its production system for emerging markets in order to expand operations in these areas and speed up the product supply.
In Malaysia, the Malaysian Medical Devices Act has been enforced and the government has developed a regulatory program for medical devices, including production and sales activities. Accordingly, Nihon Kohden Malaysia will amend its articles of incorporation to add business purposes and aim to receive a manufacturer license for medical devices within 2015. Production in Malaysia will start after receiving a license for manufacturing and registration of medical devices.
Nihon Kohden will increase production efficiency by improving its production system in Japan, China and Malaysia. The Company will also address the expanding demand for medical devices by strengthening its production and logistics.

2. Outline of Nihon Kohden Malaysia 

3. Effect on Operating Results of Nihon Kohden
The effect of this matter on the consolidated results for the fiscal year ending March 31, 2015 would be minor because Nihon Kohden Malaysia will be a fabless company.