What is Brief History of Terumo Company?

Terumo Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

What is the history of Terumo?

Terumo Corporation, a global leader in medical device manufacturing, has profoundly impacted healthcare worldwide through its century-long commitment to innovation and patient care. What began as a vital initiative to produce accurate clinical thermometers in Japan has blossomed into a diversified portfolio spanning cardiovascular intervention, diabetes care, blood transfusion, and general hospital use.

Founded in Tokyo, Japan, in September 1921 as the Red Line Thermometer Corporation, the company's initial vision was to support the foundations of Japanese medical care by providing reliable domestic medical instruments.

Terumo's journey from a specialized thermometer producer to a comprehensive medical device powerhouse, boasting a market capitalization of $27.32 billion USD as of August 2025, reflects a continuous pursuit of advancing healthcare. The company's revenue exceeded 1 trillion yen for the first time in fiscal year 2024, reaching ¥1,036.2 billion (approximately $6.8 billion USD) for the fiscal year ending March 31, 2025. North America remains its largest regional market, contributing 38% of its revenue as of 2025.

Terumo Corporation's journey began on September 17, 1921, in Tokyo, Japan, initially named Red Line Thermometer Corporation. A group of physicians and scientists, including Dr. Shibasaburo Kitasato and engineer Eiji Takeuchi, established the company to address the critical shortage of high-quality clinical thermometers in Japan, a need amplified by World War I disruptions to imports.

The Genesis of Terumo Corporation

The founding of Terumo Corporation was driven by a clear mission: to produce reliable clinical thermometers domestically after imports became scarce. This initiative was a direct response to the post-World War I economic climate in Japan, emphasizing self-sufficiency in essential medical supplies.

• Founded: September 17, 1921
• Original Name: Red Line Thermometer Corporation
• Key Founders: Dr. Shibasaburo Kitasato, Eiji Takeuchi, Dr. Miozo Sasagawa
• Initial Product: 'Jintan Taionkei' (Japan's first clinical thermometer for sale)

The company's initial business model focused on manufacturing and selling these vital medical instruments. The very first product, the 'Jintan Taionkei,' launched in February 1922, marked a significant milestone as Japan's first clinical thermometer available commercially. The company's name evolved in November 1936 to Jintan Thermometer Corporation, a change stemming from a newspaper contest organized by its distributor, Jintan Honpo, which had successfully established 'Jintan Thermometer' as a recognized brand. Engineer Eiji Takeuchi's financial challenges were overcome through the support of Dr. Miozo Sasagawa, Chairman of the Tokyo Medical Association, who recognized the urgent need for quality thermometers. Dr. Sasagawa became the company's first president, underscoring the collaborative effort behind Terumo's origins. Understanding the Competitors Landscape of Terumo provides further context to these early market dynamics.

Terumo SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

The early years of Terumo Corporation saw a significant transformation from its origins as a thermometer manufacturer to a diversified medical technology company. This period was characterized by strategic product innovation and the initial steps towards global presence, laying the foundation for its future growth.

From Thermometers to Medical Innovations

Initially known as Jintan Thermometer Corporation, the company underwent a name change in November 1936. A major turning point was its public listing on the Tokyo Stock Exchange in 1948. The 1960s marked a pivotal decade where the company began to significantly expand its medical technology offerings, responding to Japan's increasing demand for advanced healthcare solutions.

Pioneering Disposable Medical Devices

Key product introductions included Japan's first disposable syringe in January 1963, followed by the first disposable hypodermic needle in January 1964. In July 1969, the company launched Japan's first blood bag with a preservative. These innovations were crucial in enhancing safety and preventing the spread of infections in medical environments.

Expanding Manufacturing and Global Reach

Manufacturing capacity grew with the establishment of the Fujinomiya Factory in 1964 and the Ashitaka Factory in 1970, both focused on glass medical devices. The company took its first steps into international markets in 1971 by establishing affiliates in the U.S. and Europe, marking the beginning of its global expansion.

Diversification and Corporate Evolution

In 1973, the company introduced Japan's first intravenous solutions in soft plastic bags, a significant advancement in preventing microbial contamination. The official renaming to Terumo Corporation occurred in October 1974, reflecting its broadened product portfolio. Further European expansion followed with new offices in Italy, France, Sweden, and Germany. The company also ventured into artificial organs with the launch of a hollow fiber dialyzer in February 1977. By 1985, Terumo Corporation was listed on the 1st Section of the Tokyo Stock Exchange, underscoring its substantial market presence and financial growth, a testament to its evolving business strategy and commitment to innovation, aligning with its Mission, Vision & Core Values of Terumo.

Terumo PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

The Terumo company history is marked by significant milestones and a consistent drive for innovation, alongside strategic navigation of industry challenges. From its early days, the company focused on improving medical practices through technological advancements, laying the groundwork for its global presence in the medical technology sector. This journey reflects a commitment to enhancing patient care and medical efficiency.

Terumo's innovation history is deeply rooted in its commitment to research and development, consistently investing around 6% of its annual revenue. This dedication has led to groundbreaking products like the world's first microporous hollow-fiber membrane oxygenator and, more recently, the autologous skeletal myoblast sheet, recognized as the world's first approved regenerative medicine for cardiac therapy. The company continues to advance its offerings, as seen with the FDA-cleared Medis QFR® 3.0 Software and the ROADSAVER™ Carotid Stent System in 2025.

Disposable Syringes and Blood Bags

In its early years, Terumo pioneered the production of Japan's first disposable syringe in 1963 and the first blood bag in 1969, significantly enhancing medical safety and efficiency.

Hollow-Fiber Membrane Oxygenator

The launch of the world's first microporous hollow-fiber membrane oxygenator in 1982 was a major advancement for cardiovascular surgery, a technology that remains a core part of its product line.

Regenerative Medicine for Cardiac Therapy

Terumo achieved a significant breakthrough in 2015 with the introduction of the autologous skeletal myoblast sheet, the first approved regenerative medicine for cardiac regenerative therapy globally.

Advanced Image Processing for Medical Devices

In Q2 2024, the company filed a patent for an advanced image processing device designed to precisely track medical devices within biological tissue using deformation spot analysis.

Coronary Physiology Assessment Software

The FDA clearance of Medis QFR® 3.0 Software in April 2025 highlights Terumo's ongoing commitment to improving cardiovascular diagnostics and patient management.

Carotid Stent System

The commercial availability of the ROADSAVER™ Carotid Stent System in May 2025 further strengthens its position in the vascular intervention market.

Terumo has faced challenges including market volatility and intense competition, but has demonstrated resilience, achieving record operating profit and free cash flow in fiscal year 2024 despite one-time expenses of ¥24.2 billion. Ongoing challenges for FY2025 involve managing raw material costs and tariff uncertainties, which the company plans to address through strategic pricing and market expansion, particularly in the U.S. and China.

Market and Competitive Pressures

The company must continually adapt to dynamic market conditions and navigate intense competition within the global medical technology landscape.

Supply Chain Complexities

Managing global supply chains presents ongoing challenges, requiring robust strategies to ensure consistent product availability and mitigate disruptions.

Raw Material Costs and Tariffs

For FY2025, the company is focused on mitigating the impact of rising raw material costs and potential tariff uncertainties through proactive pricing strategies and demand growth initiatives.

Operational Excellence and Restructuring

Terumo addresses its challenges by emphasizing operational excellence and strategic restructuring, aiming to enhance efficiency and maintain its competitive edge.

Financial Resilience

Despite facing one-time expenses in fiscal year 2024, the company demonstrated financial resilience by achieving record operating profit and free cash flow, underscoring effective cost management and growth strategies.

Global Expansion Strategy

Continued demand expansion, particularly in key markets like the U.S. and China, is a critical component of Terumo's strategy to overcome economic headwinds and drive future growth.

Terumo Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

The Terumo company history showcases a remarkable journey from its origins as Red Line Thermometer Corporation in 1921 to its current status as a global leader in healthcare. Key milestones in the Terumo Corporation founding and development stages include launching Japan's first clinical thermometer in 1922 and its first disposable syringes in 1963. The company's global expansion history is evident from its first overseas affiliates established in the U.S. and Belgium in 1971. Terumo's innovation history is marked by advancements in artificial organs and medical devices, culminating in its 100th anniversary celebration in 2021 and record-high revenues in recent years.

Strategic Mid-Term Plan: G26

Terumo's 'G26' mid-term strategy (2024–2026) outlines its path for sustained growth. This plan targets a sales Compound Annual Growth Rate (CAGR) of 14%, aiming for ¥1.05 trillion in revenue by fiscal year 2026.

Financial Projections and Growth Drivers

The company projects an operating profit margin of 20%, driven by Contract Development and Manufacturing Organization (CDMO) scalability and cost efficiencies. For fiscal year 2025, Terumo anticipates a 7% revenue increase and 32% operating profit growth on a local currency basis.

Key Strategic Initiatives

Strategic priorities include expanding CDMO capabilities and leveraging leadership in blood solutions for plasma innovation. Enhancing operational efficiency through restructuring and automation is also a key focus for the company.

Global Expansion and Innovation Hubs

Terumo is focusing on geographic expansion into high-growth regions like North America and Europe. Establishing innovation hubs in locations such as California and Dubai is crucial for market proximity and client engagement, as detailed in the Growth Strategy of Terumo.

Terumo Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔