Japan's geopolitical environment continues to shift as a result of increasing change in the political, economic and diplomatic landscapes, with apprehension and confusion clouding forecasts for the world economy. While Otsuka’s commitment remains firm to address people’s universal aspiration for good health, the company must now more than ever confront fundamental questions about our purpose and how best to contribute to society.
The year 2018 was the final one of our Second Medium-term Management Plan. Positioned as a five-year period beginning in 2014, the Plan was dedicated to establishing a more diversified profit structure.
As a result, structural reform and sustainable investment have allowed us to diversify our product portfolio and cultivate new drivers of growth. In our pharmaceutical business, in addition to psychiatry and neurology, we have continued to invest and further develop business in oncology and the cardiovascular and renal systems, laying the ground for growth in a range of areas including addressing challenges in the area of medical devices. In our nutraceutical* business, we reviewed each of our value chains, bolstered efficiency and developed new products, improving profitability above planned levels.
The year 2019 is the first in our Third Medium-term Management Plan. During this period we will examine projects results to identify those that will form the future core, targeting successes that will endure beyond the five-year period, looking towards 2030.
Our medium-to-long-term strategy is called upon to embrace the ever-more-important challenge of returning value to society. In line with our corporate philosophy of “Otsuka-people creating new products for better health worldwide”, we will strive towards continued growth based on the kinds of innovation that only Otsuka can provide.
We deeply appreciate your ongoing support.
President and Representative Director, CEO
- * Nutraceuticals = nutrition + pharmaceuticals