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Management Policies

The 3rd Medium-Term Management Plan

Advance in the Global Market as a Unique Total Healthcare Company ~ Five-Year Growth Phase ~

Otsuka has been creating new value, underpinned by its corporate philosophy of “Otsuka - people creating new products for better health worldwide” and driven by the management spirit of “Ryukan-godo” (Commitment), “Jissho” (Actualization), and “Sozosei” (Creativity). Integral to this value creation have been (1) new concepts created from the organic combination of unique and diverse businesses with insights into the world’s true needs and technological/scientific know-how; (2) synergies and derivation of diverse operations; and (3) cultivation of niche areas of business.
The company continues to operate with the aim of becoming an “indispensable contributor to people’s health worldwide” by offering the original products of its Pharmaceutical business and the Nutraceutical business to address both unmet medical needs and yet-to-be-conceived needs as a total healthcare provider that supports daily maintenance and promotion of health, extending from diagnosis through to the treatment of disease.

The company has chosen the statement, “Advance in the Global Market as a Unique Total Healthcare Company: Five-Year Growth Phase” to describe the positioning of its 3rd Medium-Term Management Plan. Through pursuing “New value creation” and “Existing business value maximization” in the two core businesses of the Pharmaceutical business and the Nutraceutical business, and “Capital cost-conscious business management,” the company aims to achieve sustainable growth.

Our goals

To become an indispensable contributor to  people's health worl

Strategy

Performance Targets:
Business profit growth of more than 10% compound annual growth rate

The company will achieve the targets through steady growth of mainstay products and brands in the Pharmaceutical business and the Nutraceutical business

Business Strategy:
Maximization of existing business value and new value creation

Accelerate growth through strategic initiatives geared at mainstay products and brands

The company will enhance strategic initiatives upon designating the following products and brands as growth drivers: Four global products in Pharmaceuticals (Abilify Maintena, Rexulti, Samsca/JINARC/JYNARQUE, LONSURF), three major brands in Nutraceuticals (POCARI SWEAT, Nature Made, Nutrition & Santé SAS products), and three nurture brands in Nutraceuticals (Daiya Foods Inc. products, EQUELLE, BODY MAINTÉ).

Initiatives focused on next-generation businesses and products

In the Pharmaceutical business, the company will address the challenge of expanding into new frontiers that “Only Otsuka can do,” providing solutions to unmet medical needs and generating innovation from original and diverse research platforms. In the Nutraceutical business, the company will create new concepts with sights set on changes in the business environment and address challenges of expanding into new categories and new areas.

Financial Policy:
Capital cost-conscious business management

Otsuka will strive to balance and secure capital for growth investments and shareholder returns, and establish a management foundation to support accelerated global expansion toward disciplined management practices.