Announcement Regarding Share Purchase of Itabashi Trading Co., Ltd.

Menicon Co., Ltd. (“Menicon”, President and CEO: Hidenari Tanaka, pictured right) is pleased to announce that it has entered into a share purchase agreement on December 17, 2020 with Itabashi Trading Co., Ltd. (“Itabashi”, Representative Director: Tatsuro Itabashi, pictured left) to make Itabashi a wholly-owned subsidiary of Menicon.

Itabashi’s core business is the import and export of medical equipment in China, consisting primarily of contact lenses and lens care products, for which it also provides consulting services. Additionally, Itabashi is involved in the import and export of marine and agricultural products including fresh fish and rice. Its group companies in China include the medical device sales company Itabashi Medical Device Co., Ltd. Dalian, the Kangqiao Clinic of Ophthalmology and Optometry, and the agricultural product-focused Itabashi Trading China Co., Ltd.

Within Itabashi’s primary fields of contact lens and care product business, as China is experiencing an increase in the rate of myopia among young people, orthokeratology lenses have become particularly popular, showing an average of 30%(*¹) growth year on year. Itabashi is already selling Menicon care products as well as the Alpha Ortho-K lens made by Menicon’s subsidiary Alpha Corporation, and despite the global pandemic it has grown sales in China and the Asia region by 43.6%(*²) over the same period in the previous year. With the sales force and the technical team of Itabashi Medical Device Co., Ltd. Dalian, Menicon plans to further strengthen its position in this area.

Menicon’s business in China so far has included collaboration with a university hospital and the establishment of a manufacturing company. Through the acquisition of Itabashi, Menicon adds sales to its academic and manufacturing functions, putting into place a coherent structure for full-scale entry into the Chinese market. By providing sophisticated products and spreading knowledge of proper prescription and safe use, Menicon believes it can realize its corporate slogan of “contributing to society by providing superior visual correction”. Furthermore, full-scale entry into the rapidly growing Chinese market is expected to lead to an expansion of Menicon’s contact lens and related product business as well as accelerate growth of its international business.

In accordance with the agreement, Menicon expects to complete the acquisition in January 2021.

(*1) Menicon data on file
(*2) From the Q2 Financial Results Briefing for Fiscal Year Ending March 31, 2021 (this year’s first and second quarter actual results)

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