Key facts
- Terumo will incur a total loss of $610 million due to the termination of a supply agreement with CSL Plasma.
- The loss includes $450 million in impairment losses on U.S. production facilities and related assets.
- An additional $160 million in costs are expected during the transition period.
- CSL Plasma decided to switch to devices from other suppliers for some of its locations.
- Terumo's net profit forecast for the fiscal year ending March 2027 was lowered by 73.1 billion yen to 120 billion yen.
- Terumo's revenue forecast for the fiscal year ending March 2027 was lowered by 9.5 billion yen to 1.2295 trillion yen.
Terumo, a Japanese medical device manufacturer, announced on Thursday that it will incur a total loss of $610 million due to the termination of a supply agreement with its U.S. customer, CSL Plasma. The customer, which operates blood plasma donation centers, decided to switch to devices from other suppliers for some of its locations.
The total loss includes $450 million in impairment losses on Terumo's U.S. production facilities and related assets, as well as an anticipated $160 million in costs during the transition period. Terumo explained that the reason for the contract termination was CSL Plasma's intention to transition to non-Terumo devices at certain sites.
Terumo President Mitsuru Samejima stated in an online briefing that CSL Plasma had approached Terumo in August with a request to transfer some business to other companies. Following discussions, both parties concluded that contract termination was the most appropriate course of action. Samejima added that the company decided not to postpone the management issue and proceeded with booking the loss.
Terumo had initially entered the partnership with CSL Plasma, the industry's largest player, believing it could be profitable as CSL Plasma exclusively contracted with a single supplier. However, delays in equipment introduction due to the COVID-19 pandemic made it difficult to secure the expected economic rationality. Terumo began collaborating with CSL Plasma in 2021 through its U.S. subsidiary, Terumo BCT, developing the "Rika" plasma collection device, which received FDA certification in 2022. The business had been a key driver for Terumo, contributing to a record high profit in the fiscal year ended March 2026.