Japan healthcare sector

Research evidence excerpt

Japan healthcare sector

Global Markets Research

Japan healthcare sector 27 July 2026

EQUITY: JAPAN PHARMACEUTICALS

Research Analysts

Key points to watch in results Japan pharmaceuticals &

healthcare

Concerns diminishing; time now to focus on encouraging signs Japan small cap - pharmaceuticals

& healthcare

Key points to watch in healthcare investment: Sector a likely beneficiary if market Kyoichiro Shigemura - NSC

interest shifts away from AI and semiconductor stocks kyoichiro.shigemura@nomura.com

Some healthtech stocks have begun outperforming the TOPIX recently, alongside some +81 3 6703 1118

healthcare stocks regarded as defensive growth stocks. We think this could be the start of Miho Kawamura - NSC

a sector rotation in anticipation of the market shifting its focus away from the AI and miho.kawamura@nomura.com

semiconductor-related stocks in favor of late. In terms of stock selection, we are especially +81 3 6703 1189

interested in stocks that are currently lagging in terms of share price performance

(undergoing valuation corrections, for example), despite fewer concerns about their

earnings.

1. Healthtech: Focusing on prospects for earnings growth from Jul–Sep, launch of

new services

In the case of M3 [2413] (Buy), recovery in pharmaceutical marketing could prove slow,

but we anticipate increased contributions from medical workplace DX businesses such as

DigiKar and DigiKar Smart. In the AI space, our focus is on the launch of AI assistance

services for physicians. We expect M3 to be highly adept in using AI, thanks to its

strengths in platforms and data. We expect that JMDC [4483] (Buy) will report a decline

in operating profits in Q1 because of upfront investment in AI development and marketing

spend aimed at delivering a recovery in the medical segment.