When Fujifilm announced a ‘full-scale entry’ into the pharmaceutical sector earlier this year, many market observers were left head scratching. Surely companies should focus on their core competencies? What does Fujifilm know about developing and selling medicines? Who is going to buy these drugs?

I, on the other hand, saw the beginning of a trend that has played out nicely. Beleaguered companies (as Fujifilm very much is ) see medical services as a sustainable and expanding business, principally because people will always get sick and the global population is both growing and ageing. Unlike other industries, the pharmaceuticals sector is also resilient to economic downturns, as it has recently demonstrated. Consider the following:

• Demand for Fujifilm’s core competency has evaporated. The advent of digital cameras means that photographic film accounts for just 2% of the company’s revenue (down from 19% in 2001). To grow profits and sales, Fujifilm has to evolve and develop new products.
• Fujifilm will have help in its new venture. The company is partnering with Mitsubishi Corporation and Toho Holdings, which have expertise in sourcing raw ingredients and pharmaceutical distribution, respectively.
• There is unmet local demand. Japan’s generic drug sector is an ‘emerging market’ in its own right. Sales of these affordable pharmaceuticals are forecast to increase from US$7.3bn in 2009 to US$10.3bn in 2014 – a rise of nearly 50%. Doctors and patients in Japan are also more likely to prescribe and consume locally-made generic medicines rather than imported brands.

Since Fujifilm’s move into healthcare, several other firms have followed suit, fulfilling what I have termed the ‘bioelectric paradigm shift’.

• In March, technology conglomerate Hitachi formed a partnership with US-based NextDocs. The firms plan to assist Japanese life science companies with the submission of regulatory dossiers.
• In April, Japan-based Panasonic announced expansion plans for its Singapore research and development centre, which traditionally focused on the audiovisual, automotive, computer and communications industries. The facility will now work on new electronic applications in the environmental, energy and medical sectors.
• That same month, Fujitsu unveiled a sensor that can diagnose diseases in 5-10 minutes – 100 times faster than existing solutions. The device was developed in partnership with the Technical University of Munich and targets proteins unique to various diseases.

Technology companies are not alone in moving into the healthcare sector. Phone companies are increasingly promoting the benefits of telemedicine, while food and drink firms have high hopes for nutraceuticals.