Medium-Term Management Plan
Otsuka Group established its First Medium-Term anagement Plan, which begins in fiscal 2011.
- Positioning of the First Medium-Term Management Plan
- Performance Targets of the First Medium-Term Management Plan
- Priority Measures
- Long-Term Business Strategy
Positioning of the First Medium-Term Management Plan
Over the three-year period of the plan, we will complete the establishment of a structure and system to be a world-class global healthcare company with the two mainstay businesses of pharmaceuticals and nutraceuticals.
Performance Targets of the First Medium-Term Management Plan
● Achieve constant profit growth rates of over 15%
● Expand forward-looking investment in preparation for the following period of the medium-term management plan
|(¥ billion)||FY2010 actual||FY2013 plan||CAGR|
|(Ratio of overseas sales to net sales)||47%||50%|
|vs. net sales||15.1%||15.0%|
|vs. net sales||10.8%||15.0%|
|ROE||7.8%||10% or more|
Notes: 1. Assumptions regarding foreign currency exchange rates: $1 = ¥85; Euro 1 = ¥115
2. Excluding external growth
1Provide added-value in the pharmaceutical business and maximize profit
- ● Secure sustainable growth by maximizing pharmaceutical value
- ● Create unique and innovative new products
In the pharmaceuticals segment, the main drivers of growth in the medium-term management plan are continuing growth of atypical antipsychotic ABILIFY, and increase in its earnings distribution in the U.S., increasing earnings from collaboration with Bristol-Myers Squibb (BMS) in the field of oncology, and rising sales from the launch of new drugs in Japan. The Group will also invest in R&D to ensure steady progress in its pipeline for continued growth in the future.
2Expand the nutraceutical business and increase profit
- ● Growth through the introduction of new products and regional focus
- ● Improve profitability
In the nutraceutical segment, improving profitability through expanded sales outside Japan and improvement of the cost structure is the focal point of the medium-term management plan.
3Lay the groundwork for the next medium-term management plan
- ● Foster new businesses
- ● Establish a framework for facilitating reform
As a strategic move toward further growth, medical devices and the soy business are two new businesses that the Group will nurture during the period of the medium-term management plan.
4Engage in activities to maximize corporate value, and secure shareholder return
- ● Investment for growth, alliance strategies, and shareholder return policy
At present, the atypical antipsychotic ABILIFY accounts for about 50% of the Company's income. From now on, the Company plans to establish a structure that can achieve sustainable growth while distributing business risk and allowing diverse businesses to contribute to income.
The Company regards the return of profits to shareholders as an important management policy. Its basic principle is to continuously return profits to shareholders in line with growth in income while securing the retained earnings needed to cope with changes in the management environment.
Long-Term Business Strategy
The aim for the three years covered by the medium-term management plan is to create a world-class structure as a global healthcare company built upon two mainstay businesses: pharmaceuticals and nutraceuticals. The Company's target is ¥1.5 trillion in sales in fiscal 2020, which it aims to achieve through various measures meant to roll out reform during these three years and to overcome the impact of ABILIFY patent expiration in 2015.