Medium-Term Management Plan
In August 2014, Otsuka Holdings announces the Second Medium-Term Management Plan (2014-2018).
In this plan, sustained investment and structural reform are the basic policies for growth beyond fiscal 2018. Otsuka Group will implement this plan, ultimately to become an indispensable contributor to people’s health worldwide.
- Management Policy and Plan Outline
- Performance Targets
- Pharmaceutical Business Strategy
- Nutraceutical Business Strategy
- Investment Policy and Shareholder Returns
Management Policy and Plan Outline
Otsuka Group will expand business opportunities through human resources, technology and products, based on our corporate philosophy “Otsuka-people creating new products for better health worldwide.”
A temporary decrease in net sales and operating income is expected due to Abilify’s patent expiration. However, through constructive investment in growth, performance will rebound.
The net sales target is ¥1,440 billion and the operating income target is ¥200 billion for fiscal 2018.
We will continue extensive R&D investment for further growth.
|(¥ billion)||2013 Actual||2016 Target||2018 Target|
|vs. net sales (%)||13.7||8.4||13.9|
The focus on therapeutic areas such as CNS, excluding Abilify, and oncology will drive growth. In addition, the other core areas' steady growth will contribute to sales structure diversification.
Pharmaceutical Business Strategy
Strengthening core therapeutic areas is the main strategy. We will maximize the value of products through aggressive R&D investment.
This plan will be massively driven by three global products (Abilify Maintena, brexpiprazole and Samsca (tolvaptan)), three next-generation global products (Lonsurf, SGI-110 and Lu AE58054 ) and new drugs in Japan, as a result of aggressive investment implemented during the first medium-term management plan. Investment to enrich product pipelines, including in-license, will be aggressively considered.
2 New drugs in Japan: products newly launched or to be launched in Japan between 2009 and 2018, excluding 3 global products and 3 next-generation products above.
Foreign currency exchange rate assumpions: US$1 = ￥100, Euro 1 = ￥140
Nutraceutical Business Strategy
We will purue structural reforms and evolution to achieve growth in the nutraceutical business. We will review the business assets that support the value chain; product strategy, R&D, production, marketing, sales and distribution. The growth of global products will be promoted through brand-building in established markets and expansion to new markets forcusing on a regional network. We will implement comprehensive structural reforms through acceleration of global expansion and fostering of new products, and are aiming for achieve the operating income ratio of 10%.
Investment Policy and Shareholder Returns
We will aggressively implement strategic investment while keeping a strong balance sheet.
|Pharmaceuticals||・Product-based acquisitions and alliances mainly in CNS and oncology ・Strengthen oncology sales infrastructure in the US ・Investment in medical device business|
|Nutraceuticals||・Brand-based acquisitions and alliances ・Acquisitions of overseas distribution network ・Aggressive global expansion of our own brands|
We will aggressively implement shareholder returns, balancing them with strategic investment.