Business Model of a Pharmaceutical Company
Pharmaceutical R&D takes place over long periods (approximately
9–16 years) and requires massive investment (tens of billions to
hundreds of billions of yen). There is also great uncertainty, as
the probability of success is extremely low (approximately 1 in
31,000). Generic drugs, on the other hand, tend to reach the
market relatively quickly and at low cost, with a development
period of approximately three to four years and a development
cost of hundreds of millions of yen. On the other hand, the
generic drug market is marked by fierce competition that can
lead to price wars. To create innovative new drugs expeditiously
and efficiently against this backdrop, the Group seeks to
strengthen its R&D capabilities by proactively utilizing open
innovation while strengthening business collaboration through
increased alliances at home and abroad.