(Published in September 2025)
Financial Capital
Attributes
Our focus is on strategically building and managing our portfolio,
with due consideration for the challenging business climate in the
pharmaceutical market in Japan and for R&D risks. Against Medium
Term Management Plan 2025 targets of ¥70 billion for net sales, 8%
for the operating profit margin, and 8% for ROE, in FY2024 we
achieved net sales of ¥64.1 billion while operating profit margin and
ROE have already surpassed our goals. The price-to-book ratio (PBR)
has improved from approximately 0.6x at the end of March 2023 to
over 1x. In terms of shareholder returns, we have shifted to a
performance-linked profit-sharing method with a consolidated
dividend payout benchmark ratio of 30%, and in FY2024 we
increased our dividend per share to ¥55. We aim to drive profit
growth and improve capital efficiency with a view to enhancing
shareholder value and maximizing corporate value.
Approach to strengthening capital
We prioritize management that is conscious of cost of capital and
share price, and are strengthening financial capital with a focus on
growth strategies, enhanced shareholder returns, and expanded
IR activities. We aim to broaden our earnings base through
pharmaceuticals R&D, global business expansion, and M&A, thereby
achieving sustainable ROE growth. In addition to maintaining a
benchmark dividend payout ratio of 30%, we have introduced a
minimum payout level to ensure dividend stability. We are also
enhancing IR activities to deepen communication with investors and
improve price-to-earnings ratio (PER) and PBR, with the goal of
maximizing corporate value. In our upcoming medium-term
management plan currently being formulated, we will accelerate our
strategy supporting both sustainable growth and capital efficiency
improvements, and work to present a clear long-term growth story.
Related material issues
Strengthening governance
Manufactured Capital
Attributes
Based on efficient production planning and rigorous quality control,
the Group has built a manufacturing system that ensures the stable
supply of pharmaceuticals and reducing costs. By complying with
Good Manufacturing Practice (GMP) standards and implementing
systems such as Manufacturing Execution System (MES), Laboratory
Information Management System (LIMS), and Quality Assurance System
(QAS), we have ensured production history traceability and timely
responses to defects. This enables us to supply high-quality products
quickly and reliably, thereby contributing to patients’ health and peace
of mind. We also highly value human resource development. This
means that staff with a high level of specialized knowledge and skills
are responsible for quality and production management. We also
promote sustainable production, using energy-saving equipment and
waste recycling in order to protect the environment.
Approach to strengthening capital
In supply chain management, the Group emphasizes building
relationships of trust with business partners to maintain and improve
product and service quality and ensure a stable supply. The Group
signed the United Nations Global Compact in FY2021 and supports
its 10 principles, including the protection of human rights, while
pursuing sustainable procurement. We use a supplier evaluation
system to select business partners in a fair and impartial manner,
and plan to continue contributing to the realization of a sustainable
society by further enhancing our production system and improving
productivity, as well as strengthening collaboration with business
partners and maintaining a stable supply.
Related material issues
Promotion of environmental management/Stable supply of high-quality products and proper information provision/Respect for human rights
Intellectual Capital
Attributes
We position our intellectual property activities as one of the essential
elements of our business development as a pharmaceutical company,
and strategically pursue such activities based on our corporate
philosophy of “Contribute toward the improvement of people’s health
and progress in society through the development of innovative products.”
We seek to maximize the value of our intellectual property rights by
formulating and executing an intellectual property strategy built on the
global rollout of activities related to intellectual property, including patent
rights, utility model rights, design rights, and trademark rights. We will
appropriately protect and manage intellectual property created through
R&D activities, and use it proactively to enhance corporate value.
Approach to strengthening capital
The Group aims to deliver pharmaceuticals and products that
contribute to people’s health and animal health. To that end, we
examine our own intellectual property and that of other companies,
and seek to identify and utilize such assets. We strategically apply
for and obtain patents, etc. for intellectual property created during
the R&D process, and by protecting and utilizing this intellectual
property we are able to increase the value of our products. Drawing
on know-how informed by the needs of medical professionals,
patients, and livestock producers, we strive to improve product value
while also promoting the co-creation of intellectual property through
open innovation.
Related material issues
Strengthening governance
Natural Capital
Attributes
The Group approaches all business activities with the goal of
environmental protection and continuous reduction of our
environmental footprint. We have established an environmental
management structure and comply with environmental laws and
regulations and other requirements. ASKA Pharmaceutical’s Iwaki
Factory has obtained ISO 14001 certification, and ASKA Pharmaceutical
regularly holds companywide Environmental Management Meetings to
ensure effective environmental management. In terms of climate
change initiatives, by FY2023 we had already achieved our medium
term goal of reducing CO2 emissions by 46% by FY2030 (relative to
FY2013), on the way to achieving carbon neutrality by FY2050. We
also properly manage water resources, and our major business sites
are deemed to have low water stress risk. On the subject of waste,
we recycled 87% of the 172 tons of waste generated in FY2024.
Approach to strengthening capital
Guided by our vision of “working towards carbon neutrality by 2050
and contributing to the realization of a decarbonized society,” we
procure CO2-free electricity and undertake solar power generation
using the PPA model. To help build a recycling-oriented society, we
will contribute to the efficient use of resources by reducing waste,
promoting reuse, and pursuing resource conservation. With regard
to water resources, we will continue managing water withdrawal
and contributing to water resource conservation through collaboration
with local communities. We have also begun information disclosure
in line with the TNFD recommendations. By identifying key nature
related risks and opportunities based on the LEAP* approach, we
will work proactively to maintain and conserve biodiversity.
*LEAP: Locate, Evaluate, Assess, Prepare
Related material issues
Promotion of environmental management
Social Capital
Attributes
As a company engaged in “life,” the ASKA Pharmaceutical Holdings
Group contributes to society’s healthy development by promoting
sustainability in addition to supplying pharmaceuticals. We have
identified “contributing to women’s health and animal health” as a
material issue that is particularly relevant to our Group. By alleviating
women’s menstrual symptoms in our capacity as a leading company
in the Ob/Gyn field, we helped to reduce economic loss due to medical
care for such symptoms by ¥81.3 billion in FY2024, and our Health Lab
Mint+ for Women’s health website, which has over 300,000 monthly
users, has further strengthened the Group’s connection with society.
We also seek to improve our R&D capabilities through open innovation
and external collaboration.
Approach to strengthening capital
We aspire to be a company that contributes to women’s healthcare
from prevention to prognosis, and to that end we are working to
acquire new drug pipeline candidates and maximize the value of
existing products. Through the ASKA Innovation Fund established in
2023, we aim to support the commercialization of healthcare
businesses in pharmaceuticals and adjacent markets. The Quality &
Safety Assurance Division works to ensure quality, safety and stable
supply, while the Sales Division addresses diverse medical needs
through a three-pronged approach that combines digital and
real-world activities. Respect for human rights is another material
management issue we have identified. In this regard, we seek to
fulfill our responsibilities to all stakeholders and contribute to the
realization of a sustainable society based on standards including the
United Nations’ Guiding Principles on Business and Human Rights.
Related material issues
Contributing to women’s health and animal health/Stable supply of high-quality products and proper information provision/Respect for human rights
Human Capital
Attributes
The Group regards human resources as its most valuable asset, and
we aim to become a “total healthcare company” by aligning our
human resources strategy with our management strategy. We
support each employee in pursuing autonomous learning and
growth, while also fostering a culture that respects diversity. Our
employee engagement surveys demonstrate an uptrend in the work
engagement and mental toughness scores. We introduced a new
human resources system in April 2021, clarifying roles and
remuneration and ensuring transparency and fairness in employee
evaluations. The ratio of female managers had reached 13.5% by
the end of FY2024, and we are promoting diverse work styles as
well as health and productivity management, in pursuit of employee
wellbeing and a safe and comfortable workplace environment.
To maximize our human capital, we set the goal of “developing human
resources to realize our growth strategies.” We aim to acquire and
develop human resources capable of adapting to new businesses and
changes in circumstances, and to create a workplace that enables diverse
talent to thrive. We encourage the autonomous growth of employees
through training programs linked to our personnel system, along with
career support and job rotation. In addition to achieving 100% childcare
leave utilization among male employees (FY2024), we are actively
promoting management-level diversity and proactive employment of
people with disabilities. Further, we strive to increase employee
engagement by providing opportunities for dialogue with management
and seek to support flexible work styles as well as health and productivity
management prioritizing physical and mental health. In this manner,
we aim to transform our organizational culture into one that promotes
innovation, and to achieve sustainable corporate value creation.
Related material issues
Development of diverse human resources for enhancing corporate value/Respect for human rights