Otsuka's Strengths

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People are the source of our strengths. Since Otsuka's establishment in 1921, employees everywhere have pursued business guided by our enduring corporate philosophy in order to bring health to people worldwide. Through the determination of these employees, we have developed many strengths. The six strengths described below are a representative sample, and more continue to evolve each day. Making the best possible use of these strengths, employees take on new challenges to fulfill our potential, all in order to contribute to better health worldwide.

An enduring corporate philosophy and a managerial essence, passed down and practiced throughout the groupAn enduring corporate philosophy and a managerial essence, passed down and practiced throughout the group

31 countries/regions
Our corporate philosophy is displayed prominently in offices in every country where we do business

We engage our employees to think and act creatively without preconceived notions. We also support their development, so that they can embody our unique capabilities and potential. We believe that this, as well as engagement with our corporate philosophy and managerial essence (reflected in our corporate culture) has brought us to where we are today, and will build the Otsuka of tomorrow.

A business model centered on total healthcareA business model centered on total healthcare

Contributing to three aspects of health
Physical, mental and social well-being

We provide a variety of science-based products and services that meet the specific healthcare needs of the times in each community. We conceive products and services that will contribute in 10 or 20 years' time in the three areas of physical, mental, and social well-being.

1The state of health, as defined in the constitution of the World Health Organization (WHO)

An unwavering quest for originalityAn unwavering quest for originality

In-house drug discovery percentage: 89%1
Development projects for unmet need: 232

We pursue the creativity implicit in our corporate philosophy across our entire value chain, from R&D through marketing. In the ongoing challenge to create innovative products and services, we are always thinking about how to generate the kind of innovation that defines Otsuka, targeting unmet medical needs as well as the yet-to-be-imagined needs of consumers.

  • 1Ratio of in-house drug discovery projects among late-phase development projects
  • 2As of December 2019; unmet needs areas defined by Otsuka based on PatientsMap2019JP and PatientsMap2018US, M3 & SSRI
  • As of June 2020

A global reach incorporating solutions to social issues through our core business processesA global reach incorporating solutions to social issues through our core business processes

IV solutions business overseas companies: 153
Countries/Regions where POCARI SWEAT is available: More than 20
Countries/Regions where tuberculosis drug DELTYBA is available: More than 100

As of June 2020

We are extending our global reach by addressing social issues (e.g., fluid/electrolyte replenishment, infectious diseases) that differ in each country/region depending on culture, customs and the times. Going forward, we will provide products and services that lead to solutions for social issues in many more countries/regions.

3Number of companies engaged in the intravenous solutions business. Many of these companies also export products to neighboring countries, thereby making a meaningful contribution to medical care in those countries.

An ability to nurture enduring brandsAn ability to nurture enduring brands

Top-share products by pharmaceutical category4: 8 in Japan, 3 outside Japan
Percentage of consumers in Japan who have tried POCARI SWEAT: 88.3%5

We have developed our brands through unceasing efforts to demonstrate the health value of innovative products born from creative R&D. Our ability to nurture brands leads to sustainable growth and enhanced corporate value, enabling us to take on the challenge of finding original approaches to new healthcare needs.

  • 4Copyright © 2020 IQVIA. Created based on annual category totals for the past 10 years, including IQVIA MIDAS 2009 to 2019 and Otsuka research. Categories defined by Otsuka. Reprinted with permission.
  • 5November 2019 survey in Japan conducted by Otsuka

As of June 2020

A solid financial foundation and strong earnings power, which drive sustainable growthA solid financial foundation and strong earnings power, which drive sustainable growth

Rating: AA−6
Business profit margin of Nutraceutical Business: 12.7%7

We are cultivating a solid financial foundation and strong earnings power whereby nutraceuticals and intravenous solutions generate stable earnings and act as a base, while therapeutic agents, which are a driver of growth, fund ongoing investment in creative new areas befitting Otsuka. This will form the basis for sustained investment in areas that create new value in the face of a changing business environment.

  • 6Rating and Investment Information, Inc.
  • 7Average for the previous three years (For reference: Average operating profit margin of S&P Food & Beverage Select Industry Index constituents for the previous three years: 8.5%)

As of June 2020

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