Session 5: The Beginning of a New Survival Era

Award for the Rapid Growth of the Japanese Sales Team

In June 2007, PerSeptive Biosystems Japan Corporation received the “No. 1 Sales Award.” A total of 14 members, including all sales representatives and marketing team members, were invited to the U.S. headquarters of PerSeptive Biosystems, Inc., located in Framingham, Massachusetts. This visit marked the second summer since the launch of the first MALDI-TOF-MS system, the Voyager. In the first year, we achieved sales of nearly 30 units, significantly outperforming our competitor N, who managed to secure only one order. The following year, we reached nearly 130 units in sales, maintaining a 40% global market share each quarter.

Award plate received for achieving top sales in the U.S.


Award plate received for achieving top sales in the U.S.

After a full day of meetings at the Framingham headquarters, a large bus was chartered to take us to a waterfront restaurant in downtown Boston. The venue was beautifully set with white tablecloths and round tables, and there was a stage at the back of the room. Following a welcoming speech by CEO Noubar Afeyan, the Mass Spectrometry Marketing Manager, Brian, took the role of MC and proposed a toast. To our surprise, cigars were distributed by the CEO to each table as part of the celebration. Although the U.S. is known for its strict smoking regulations, cigars appeared to be a symbolic element of celebration, with even female employees enjoying them. This unusual scene felt quite foreign to the Japanese team.

Initially, everyone ate quietly, but as the meal progressed, Brian took to the stage. “Ladies and gentlemen, today we celebrate the remarkable achievements of our Japanese team. Since I previously worked for a Japanese company, I know how much Japanese people love karaoke. So, we’ve arranged a karaoke session for tonight.” Beside the stage, a karaoke setup was ready, complete with inflatable guitars. The Sales Director from Tokyo, Mr. Y, the Osaka Branch Manager, Mr. S, and I were called to the stage. Most U.S. staff had never experienced karaoke before and watched us in wide-eyed curiosity. “Brian, now it’s your team’s turn to sing,” said Mr. Y, handing the microphone to Brian. His off-key singing prompted laughter and exclamations of “Oh my God!” and “No kidding!” The mic then went to CEO Noubar, who joined in with his rendition to loud cheers and laughter. Before we knew it, everyone was on their feet dancing.

By the time we checked the clock, it was past 11 PM. “Let’s go back; we’re exhausted,” murmured the Japanese staff. But without the bus, we had no way back. The party continued in true American style, turning into a wild celebration, and we didn’t return to the hotel until after 2 AM.

The next morning, the U.S. office began as usual at 8:00 AM. Despite our tired eyes, we gathered in the meeting room. To our amazement, most of the U.S. staff from the night before were already at work. “Good morning! Last night was so much fun,” they greeted us warmly. “We love karaoke now!” Although the event ended as a crazy dance party, the energy and stamina of the U.S. team were truly impressive.

Unprecedented Live Demo at a Scientific Conference

In the autumn, a year and a half after I began working with mass spectrometers, the Japanese Biochemical Society held its annual conference in Sapporo, Hokkaido. Riding the wave of rapidly improving sales performance, the Japanese team invited a few key personnel from headquarters for support and organized a grand party at Jozankei Onsen the night before the conference. During the event, we showcased our sales prowess by inviting the CEO, Noubar Afeyan, to join us.

At the time, mass spectrometry was not yet widely recognized as a groundbreaking tool for protein analysis. The sales team proposed that we demonstrate the technology live at the exhibition booth to showcase real-time data to the audience. Unlike traditional separation techniques, mass spectrometry allowed us to present results quickly and on-site. We brought a demo unit to the venue and announced live demonstrations. Thanks to prior announcements and promotions, the PerSeptive booth drew a large crowd, becoming one of the highlights of the exhibition. The boldness of this promotional approach undoubtedly contributed to our subsequent success. Over time, this collaboration fostered strong bonds of friendship between the U.S. and Japanese teams, creating a sense of camaraderie that remains cherished to this day.

The shared experiences and camaraderie from that time still resonate in our minds and memories, serving as a lasting testament to the essence of a global company. Even now, many of the U.S. colleagues from that period maintain some form of communication and collaboration, integrating those relationships into their work. While Japan, as a manufacturing powerhouse, has achieved significant success, the period of learning from U.S.-style marketing and the bioscience market — prioritizing applications and market needs while sharing objectives globally — has become an invaluable asset. This experience continues to empower us with a strong foundation to excel in our endeavors.

Immense Sales Pressure Following IPO

In 1995, when the newly formed company was established through a merger, we in the Japanese team didn’t fully grasp the significance of the fact that PerSeptive Biosystems had just been listed on NASDAQ the previous year. As ordinary corporate employees, and reflecting the general sentiment in Japan at the time, we had little awareness of the growing venture culture spurred by IPOs. Government-backed initiatives to encourage university-originated ventures in Japan became prominent only later, around 1999, near the end of the 20th century.

At the time, there was a widespread perception in Japan that an IPO equaled instant wealth for founders. However, few understood that the post-IPO period is often the most challenging for a company, as ownership shifts to shareholders. PerSeptive Biosystems had acquired the biosciences division from Millipore Corporation shortly after its IPO. Following the merger, our sole focus became achieving sales targets. Starting in the ninth week of each quarter, questions about the likelihood of hitting our targets would begin. The manufacturing facility in Houston, Texas, named each device under assembly after women, like “Linda” or “Mary,” with shipping destinations listed beside them. About half of these units were designated for Japan, making it our responsibility to ensure their shipment.

During the final week of each quarter, we would receive daily calls. One particular year-end, we had already surpassed our sales targets by the seventh week and agreed to additional shipments requested by the U.S. team. While Americans celebrated Christmas, Japanese companies typically worked until around December 28–30. After clearing our sales target on the final business day, we cleaned the office and headed to a year-end party that extended into a third round, with me returning home around 3 a.m.

Just two hours later, the phone rang. It was around 5 a.m., and the call came from the headquarters meeting room near Boston. Wrapped in a blanket, I ignored the ringing, but it persisted. Finally, I let it go to voicemail, only to hear someone from the meeting room say, “Iwase-san, we know you’re awake. Please pick up the phone!”

Reluctantly, I answered. The call was transferred to Jay, the sales manager in the U.S. “Iwase-san, I need your help. Is there any way we can get one more order?” he pleaded, sounding almost tearful. I explained that Japan was already on its year-end break and that no one was in the office. Jay continued, “The CEO, Noubar, says we absolutely need one more order to satisfy the shareholders. Honestly, I feel like I’m being threatened. If we don’t clear this, I might lose my job.”

“Really?” I replied skeptically. “Isn’t there something else going on here?”

“No, it’s the truth. But… there’s one more reason. If I can secure this last order, I’ll qualify for my bonus,” Jay admitted.

“Why didn’t you say so earlier? You just need an order form, right? If that’s the case, I’ll talk to our Sales Director, Mr. Y, tomorrow. But no promises. On one condition: if I get you the order form, you must either fund a ¥1 million night out in Ginza or airfreight 100 live lobsters as a gift. Deal?” I joked.

“Deal,” Jay replied, laughing.

Devices delivered at the end of the fiscal year


Devices delivered at the end of the fiscal year

The next morning, I contacted Mr. Y, who successfully arranged for an additional order form from our distributor. I faxed it to the U.S. This might seem implausible under today’s compliance regulations, but back then, accounting practices at foreign-owned companies were more lenient. The headquarters likely accounted for the order as a booked sale.

In mid-January of the following year, I received a call from my Tokyo secretary while on a business trip. “A delivery company at Narita Airport says they have 100 live lobsters addressed to our office. Tomorrow is a holiday. What should we do?” To my surprise, the lobsters were individually packed in boxes, so we managed to distribute them to all employees’ homes. When I returned from my trip, I found my young son in the kitchen feeding grains of rice to about ten live lobsters in the sink. It was a scene I’ll never forget.

Unexpected Events Following the Summer Annual Planning Meeting

In August 1998, I and two sales managers traveled to the U.S. to draft the sales plan for the following year.

During the fourth summer since the company’s founding, managers from branches worldwide were summoned to headquarters to finalize the annual sales strategy. At the time, these meetings, including quarterly marketing and application discussions, required frequent travel. I personally made nearly ten Tokyo-Boston round trips annually, a grueling 2-night, 4-day itinerary that, in my 40s, I managed without much difficulty.

This particular trip involved departing Narita Airport on Sunday night, preparing for three days of intense sales forecasting discussions from Monday to Wednesday. On Thursday, we planned to visit the reagent factory in Hamburg, Germany, before returning to Tokyo on Saturday. Despite Japan’s team achieving 40% of global sales—a remarkable feat—we were pressured to increase sales by more than 20% compared to the previous year. The discussions were so heated and coercive that we left for Europe without any resolution. Exhausted, we returned, only to receive an email from headquarters on Monday evening: “PerSeptive Biosystems has been acquired by Perkin-Elmer.”

My immediate reaction was, “What was last week’s meeting even for?” Shortly after, the Sales VP from the U.S. called and said, “I’m sorry, Iwase-san. This was top-secret. We couldn’t disclose it to anyone to avoid insider trading.” This marked the fourth corporate acquisition I experienced, and once again, I was on the acquired side.

At the time, Perkin-Elmer had already acquired Applied Biosystems (ABI), a market leader in bio-support instruments, aiming to merge the two operations. However, within a week, another shocking announcement followed: “Perkin-Elmer has sold its analytical instruments division to EG&G, along with the brand name, and will rebrand as PE Biosystems.” The strategy to shed the legacy analytical instruments business and pivot entirely to the biosciences market, thereby boosting stock prices, was unprecedented. Subsequently, the newly rebranded Perkin-Elmer (EG&G) acquired Packard to further its bio-focused initiatives. This series of events left market users confused, and even today, few fully understand what transpired. It was an experience unimaginable in Japan.

About six months later, the Japanese subsidiaries of PerSeptive and ABI (then part of Perkin-Elmer Japan) began their physical integration. The president of ABI Japan, Richard Lussier, was a brilliant man in his mid-30s with a deep understanding of Japan. Richard and I prearranged the integration of the sales teams, agreeing to unify them first. By merging the sales departments, former competitors quickly developed a shared mindset, which accelerated the integration of other departments. However, my colleague, Mr. Y, who had been instrumental in founding PerSeptive Japan and appointing me as president, could not adapt to corporate life again. Knowing this, I referred him to a headhunting firm, and within a month, he became the president of another U.S. subsidiary in Japan.

Mergers and acquisitions often lead to a surge in headhunting activities, and this case was no exception. Nine months after the announcement, the Japanese offices of both companies fully merged into a single legal entity. In previous acquisitions, physical integration typically occurred within 18 months, with reassuring announcements made to employees to ease concerns. In this case, the integration, including office consolidation, was completed within a year. Of those on the acquired side, only two sales managers resigned within the first year. However, by the end of 2000, approximately half had left due to offers from other companies or internal transfers, and the tight-knit teamwork of the original venture had vanished.

Thus, the rapid rise and fall of PerSeptive Biosystems Japan concluded in just four and a half years. The company was rebranded as the newly formed ABI (PE Biosystems Applied Biosystems Division), aligning with the conclusion of the Human Genome Project. ABI went on to dominate the DNA sequencer market. In 2000, at the White House, Celera Genomics CEO Dr. Craig Venter and NIH Director Dr. Francis Collins announced the completion of the Human Genome Project. A decade later, in 2010, at the International Mass Spectrometry Conference held in Kyoto, four of the top five business managers from the leading mass spectrometry companies were former PerSeptive Japan sales staff.

Little did I know that after the formation of the new ABI, I would experience a similar series of events once again in the years to come.

(To be continued)

PROFILE
Profile picture of Mr. Hisashi Iwase

Mr. Hisashi Iwase

Life Science Innovation Advisor at the Japan Analytical Instruments Manufacturers’ Association (JAIMA),
and President & CEO of BioDiscovery Inc. Born in 1951, Tokyo.
Graduated from the Department of Industrial Chemistry, College of Science and Technology, Nihon University.
Mr. Iwase’s extensive career in managing and marketing analytical and bioscience instruments includes
positions at Merck Japan, Waters Japan, Millipore Japan, PerSeptive Biosystems Japan, Applied Biosystems,
Varian Technologies, and Agilent Technologies. In 2001, he established BioDiscovery Inc., and since 2013,
he has served as a Life Science Innovation Advisor for JAIMA.

Back to the Homepage