ASKA Pharmaceutical Holdings Mid-Term Management Plan 2028
Positioning of Mid-Term Management Plan 2028 and Growth Strategy
The Mid-Term Management Plan 2028 serves as the first phase of the roadmap toward realizing ASKA VISION 2035. Based on a strategy consisting of two foundations and five strategic pillars, the plan aims to achieve both the steady growth of existing businesses and the establishment of future growth platforms, thereby building a sustainable earnings base.
By the final year of the plan, fiscal 2028, ASKA Pharmaceutical Holdings aims to achieve net sales of ¥85.0 billion. At the same time, the Company will further strengthen its business foundation with a view toward the early achievement of ¥100.0 billion in net sales, supporting long-term sustainable growth.
Mid-Term Management Plan 2028
Slogan
Deepening Our Core Strengths and Building the Business Foundation to Support Global Expansion for Sustainable Growth
FY2028 Financial Targets
Operating Profit Margin
10%
The Five Pillars Driving Growth
Domestic Pharmaceutical
Strengthening Profitability through Further Expansion in Specialty Areas
Drug Discovery
Accelerating Global Expansion
Global
Strengthening Business Foundations through New Plant Operations
Animal Health
Expanding Business through New Product Launches and Overseas Expansion
Testing and Around-the-Pill
Expanding the Testing Business through Trace Analysis Technologies and Broadening into Adjacent Healthcare Fields
Two Strategic Foundations
Financial Strategy
Advanced management with a focus on the cost of capital
Strengthening the Management Foundation
Strengthening the management infrastructure to execute strategies
6 Material Issues
1
Promotion of environmental management
2
Developing diverse human resources to enhance corporate value
3
Contributing to women's health and animal health
4
Stable supply of high-quality products and provision of appropriate information
5
Respect for human rights
6
Strengthening governance
ASKA Pharmaceutical Holdings' VISION 2035
To achieve sustainable growth and continue contributing to society over the next decade and beyond, ASKA Pharmaceutical Holdings has established its “Vision for 2035.” Through purpose-driven business management and execution, we will realize our Vision for 2035 and continue creating value for all stakeholders.
Management Policy
Guided by our long-term vision, ASKA VISION 2035, the Group is committed to purpose-driven management to remain a company that is trusted by society and continuously creates sustainable value.
In our core prescription pharmaceuticals business, we will further expand our presence in specialty areas, particularly in the fields of obstetrics and gynecology and thyroid disorders. At the same time, we will continue to contribute to healthcare by strengthening drug discovery research and leveraging open innovation to create pharmaceuticals that address evolving societal needs.
Building on our established business foundation, we will further expand our global business while advancing into the animal health and testing & around-the-pill businesses. Through these initiatives, we aim to become a Total Healthcare Company that covers the entire healthcare value chain—from prevention, testing, and diagnosis to treatment and prognosis—while expanding our business both in Japan and overseas.
In addition, under the Mid-Term Management Plan 2028, we will advance our growth strategy based on the Five Pillars and Two Strategic Foundations. By enhancing management with a strong awareness of capital costs and strengthening our management foundation, we will improve profitability and achieve sustainable growth in corporate value.
Mid-Term Management Plan 2028: Financial Targets
The Mid-Term Management Plan 2028 represents the first phase of the roadmap toward realizing ASKA VISION 2035. Through the dual pursuit of steady growth in existing businesses and the establishment of future growth platforms, the Plan aims to build a sustainable earnings base.
By the final year of the Plan, fiscal 2028, the Company targets net sales of ¥85.0 billion. At the same time, it will continue to strengthen its business foundation with a view toward the early achievement of ¥100.0 billion in net sales, supporting the next stage of growth and long-term value creation.
FY2028 Financial Targets
Operating Profit Margin
10%
Mid-Term Management Plan 2028: Growth Strategy
Under the Mid-Term Management Plan 2028, we will execute our growth strategy based on the Five Pillars and Two Strategic Foundations.
The Five Pillars Driving Growth
The Group has identified the businesses that will drive its future growth as the Five Pillars. By strategically allocating management resources to these priority areas, we will accelerate growth and strengthen our long-term competitiveness.
Domestic Pharmaceutical
― Strengthening Profitability through Further Expansion in Specialty Areas ―
We will further strengthen our presence in specialty areas, particularly in the fields of obstetrics and gynecology and thyroid disorders, which represent our core therapeutic areas. Looking ahead to future business growth, we will continue contributing to society by addressing health issues arising from sex-based differences. To support expansion into new therapeutic areas, we will actively pursue the acquisition of new rights and the enhancement of our pipeline, while making strategic investments with a view not only to the Japanese market but also to commercialization across Asia.
In addition, we will continue building the foundation for offering new treatment options beyond pharmaceuticals by advancing the development of launch and service infrastructures for our digital therapeutics currently under development. Through these initiatives, we aim to strengthen our earnings base and achieve sustainable growth.
Drug Discovery
― Accelerating Global Expansion ―
To establish a leading position in specialty areas both in Japan and overseas, we will strengthen our drug discovery research platform, with a focus on gynecological disease models and ion channel–targeted drug discovery. In addition, through the promotion of open innovation, we will incorporate new modalities, including antibodies and mid-sized molecules, to further enhance our drug discovery capabilities.
We will also maximize the value of our assets through out-licensing and collaborative development partnerships, creating medium- to long-term revenue opportunities. Furthermore, we will continue advancing our pipeline into later stages of clinical development while promoting the global expansion of proprietary assets, including AKP-009 and AKP-017. Through these initiatives, we aim to strengthen our global presence and establish a sustainable growth platform.
Global
― Strengthening Business Foundations through New Plant Operations ―
At Hataphar in Vietnam, we will strengthen our business foundation through the operation of a new manufacturing facility scheduled to commence commercial production in 2026. Leveraging this new plant, we will expand our portfolio of competitive products, including specialty products, to increase market share and improve profitability.
We will also accelerate business expansion across Southeast Asia, with a particular focus on Vietnam and the Philippines. In addition to enhancing our product supply capabilities to address local market needs, we will increase our presence in overseas markets through initiatives such as the introduction of ASKA products and the expansion of our regional business operations.
Animal Health
― Driving Business Growth through New Product Launches and Global Expansion ―
We will continue to expand our portfolio of products for both livestock and companion animals, focusing on areas where we have established strengths, including reproduction and endocrinology. In overseas markets, we will accelerate expansion primarily across Asia through the introduction of veterinary pharmaceuticals, supplements, and other products, thereby generating revenue opportunities at an early stage.
Through the continued growth of our Animal Health business, we aim to contribute to a society in which people and animals can live together in harmony.
Testing and Around-the-Pill
― Expanding the Testing Business through Trace Analysis Technologies and Diversifying into Adjacent Healthcare Fields ―
We will expand the adoption of our non-invasive hormone measurement kits while leveraging our proprietary trace mass spectrometry technologies to broaden our business in the around-the-pill field. In addition, through collaboration with startup companies, we will pursue opportunities in healthcare areas that can generate synergies with our prescription pharmaceuticals business.
Through these initiatives, we aim to establish new revenue streams and build a sustainable foundation for future growth.
Two Strategic Foundations
In addition to the Five Pillars Driving Growth, which serve as the primary engines of growth, the Group has identified Two Strategic Foundations as the key enablers that support sustainable growth from both management and financial perspectives. These foundations provide the organizational and financial infrastructure necessary to execute our growth strategy and enhance long-term corporate value.
Financial Strategy
―Advanced management with a focus on the cost of capital ―
Under a management approach that emphasizes capital efficiency, we will improve capital productivity through the introduction of management practices utilizing ROIC (Return on Invested Capital). We also recognize the enhancement of PBR (Price-to-Book Ratio) as a key management priority and will actively pursue initiatives to improve market valuation.
Based on these principles, we will strive to achieve an optimal balance between growth investments and shareholder returns through disciplined capital allocation. In addition, investments in research and development as well as M&A opportunities will be executed selectively and with a strong focus on capital efficiency, strategic fit, and long-term value creation.
Strengthening the Management Foundation
―Strengthening the management infrastructure to execute strategies ―
To reinforce the management foundation that supports sustainable growth, we will advance initiatives across four key areas: governance, human capital, digital transformation (DX), and ESG.
To further strengthen corporate governance, we have transitioned from a Company with an Audit & Supervisory Board to a Company with an Audit and Supervisory Committee. In conjunction with this transition, we have increased the proportion of independent outside directors to a majority of the Board, thereby enhancing both management transparency and oversight functions.
In addition, we will continue investing in human capital to develop the next generation of business leaders and highly skilled professionals. At the same time, we will promote digital transformation to enhance business processes, improve operational efficiency, and increase productivity, thereby strengthening the Group’s long-term competitiveness and sustainable growth potential.
Mid-Term Management Plan 2028 Presentation Materials
Webcast of Financial Results Meeting for FY2025 (Held on May 20, 2026)
Review of the Previous Mid-Term Management Plan
Evolution of the Mid-Term Management Plans
Since transitioning to a holding company structure in 2021, the Group has advanced the Mid-Term Management Plan 2025, strengthening its presence in specialty areas and expanding into new business domains. Building on these achievements, we have established our long-term vision, ASKA VISION 2035, and positioned the Mid-Term Management Plan 2028 as the first phase of its implementation roadmap. Through these initiatives, we aim to achieve sustainable growth and further enhance our corporate value.
Achievements and Progress of the Previous Mid-Term Management Plan
In the fiscal year ended March 2026, the final year of the Mid-Term Management Plan 2025, the Group achieved net sales of ¥71.1 billion, an operating margin of 8.2%, and ROE of 8.0%. As a result, we successfully attained all of the financial targets set forth in the Plan, including net sales of ¥70.0 billion, an operating margin of 8%, and ROE of 8%.
|
FY2020 |
FY2021 |
FY2022 |
FY2023 |
FY2024 |
FY2025 |
FY2026 (Forecast) |
| Net Sales |
55,181 |
56,607 |
60,461 |
62,843 |
64,139 |
71,127 |
73,000 |
| OPM |
6.5% |
8.5% |
8.4% |
10.3% |
8.3% |
8.2% |
8.5% |
| ROE |
6.3% |
8.8% |
8.2% |
13.0% |
8.0% |
8.0% |
|
Overview of Financial Results for Fiscal Year Ended March 2026
The economic environment during the fiscal year ended March 2026 remained uncertain despite signs of a gradual recovery in Japan. Rising geopolitical risks, foreign exchange fluctuations, and continued inflation in resource and raw material prices placed upward pressure on costs. In the pharmaceutical industry, the business environment remained challenging due to ongoing healthcare cost containment measures, including regular drug price revisions, as well as rising raw material and manufacturing costs.
Despite these conditions, the Group achieved increases in both revenue and profit, driven primarily by the strong performance of key products. As a result, all financial targets set forth in the Mid-Term Management Plan 2025—net sales of ¥70.0 billion, an operating margin of 8%, and ROE of 8%—were successfully achieved.
Consolidated net sales for the fiscal year increased by ¥7.0 billion year on year to ¥71.1 billion. This was primarily attributable to the continued strong performance of products in the obstetrics and gynecology field within the prescription pharmaceuticals business, as well as the consolidation of Ha Tay Pharmaceutical Joint Stock Company (Hataphar), a Vietnamese pharmaceutical company that had previously been accounted for using the equity method.
Although the cost of sales ratio increased by 0.9 percentage points from the previous fiscal year, resulting in cost of sales of ¥37.0 billion, gross profit increased by ¥2.8 billion year on year to ¥34.1 billion due to higher revenue. Selling, general and administrative expenses rose by ¥2.3 billion to ¥28.3 billion, mainly reflecting increased investment in research and development. As a result, operating profit increased by ¥0.5 billion to ¥5.8 billion.
Ordinary profit amounted to ¥5.7 billion, reflecting non-operating income of ¥740 million and non-operating expenses of ¥908 million. Profit attributable to owners of parent increased by ¥323 million year on year to ¥5.4 billion, supported by gains on the sale of investment securities and fixed assets, partially offset by a loss on the valuation of investment securities.
Progress and Achievements of Key Strategic Initiatives
The Seven Strategic Initiatives identified as key priorities under the Mid-Term Management Plan 2025 progressed largely in line with plan. The Group achieved significant milestones, including attaining the No. 1 annual sales position in the obstetrics and gynecology market, strengthening its research and development capabilities, and expanding its business footprint across Southeast Asia through strategic collaborations with Hataphar and MedChoice. These achievements have contributed to the enhancement of the Group’s competitiveness and the establishment of a foundation for future growth.
| Strategy |
Key Achievements |
| Corporate value enhancement through strengthened initiatives in specialty areas |
- ・ Maintained the No. 1 position in obstetrics and gynecology sales
- ・ Preserved leadership in the thyroid disease market
- ・ Expanded into new modalities, including digital therapeutics
|
| Continuous creation of new drugs through cutting-edge drug discovery |
- ・ Launched SLYNDA® Tablets
- ・ Initiated the Phase III clinical trial of AKP-022
- ・ Initiated the Phase I/II clinical trial of LPRI-CF113
- ・ Initiated the Phase I clinical trial of the proprietary compound AKP-021
- ・ Introduced ion channel-based drug discovery platform technology
|
| Expansion of overseas business |
- ・ Made Hataphar (Vietnam) a consolidated subsidiary
- ・ Made MedChoice (Philippines) an equity-method affiliate
- ・ Established a business platform for expansion in Southeast Asia and other overseas markets
|
| Provision of new value aimed at the realization of Total Healthcare |
- ・Investments made through the Group’s Corporate Venture Capital (CVC) fund (8 portfolio companies)
- ・ Commenced PFAS testing and analytical services
- ・ Launched a non-invasive hormone measurement kit
- ・ Launched pharmaceuticals for companion animals
- ・ Launched new feed additives
|
| Improvement of operational efficiency, reduction of costs, and strengthening of financial foundation |
- ・ Continued implementation of cost reduction initiatives (cost of sales ratio improved from 54.0% in FY2020 to 51.1% in FY2024)
- ・ Optimized the portfolio of low-profitability products
- ・ Improved operational efficiency through the promotion of digital transformation (DX)
- ・ Strengthened the financial foundation by securing financing facilities
|
| Fostering of an organizational culture that emphasizes compliance and reliability |
- ・Strengthened governance under the holding company structure
- ・ Continued Quality Management Reviews
- ・ Continued GMP Quality Management Reviews
- ・ Continued implementation of compliance training programs
|
| Human resources development for the realization of growth strategy |
- ・ Expanded flexible working arrangements
- ・ Provided reskilling opportunities for employees
- ・ Enhanced employee training and development programs
- ・ Launched a global talent development program
- ・ Launched a next-generation leadership development program
|
Business Environment
In addition to market changes such as annual drug price revisions under medical cost containment policies, issues related to pharmaceutical quality and supply, and the increasing difficulty of drug discovery, the environment continues to be highly challenging. This is further compounded by changes in the international situation, including the Russia–Ukraine conflict, global supply chain disruptions, and rising costs of energy, raw materials, and labor.
Changes in the Obstetrics and Gynecology Market
The obstetrics and gynecology market, which is the core of our group's ethical pharmaceuticals business, is expected to grow continuously.
Investors' Guide (Fiscal Year Ended March 2026)
Changes in the Environment Surrounding Women
Promotion of National Policies on Women’s Empowerment
- Inclusion in the Basic Policy 2024 and Women’s Version of the Basic Policy 2024
- Support for balancing women’s health issues—such as menstruation, pregnancy/childbirth, and menopause—with work
- Introduction of the Gynecology-Specific Disease Treatment Management Fee (2020)
- Insurance coverage for infertility treatment (2022)
Women’s Advancement in Society and Lifestyle Changes
- Increase in the number of female employees and women in management positions
- Greater understanding of women’s health issues, improved health literacy, and increased exposure through media and social networks
Advances in Medical Technology and Access Related to Women’s Diseases
- Expansion of high-quality pharmaceuticals, particularly in Asia, to enhance presence
- Diversification of treatments for dysmenorrhea and infertility
- Expansion of internet access and online medical consultations
The Group's Share of the Obstetrics and Gynecology Market
Share of the Group's growth drivers, the uterine fibroid and endometriosis treatment RELUMINA and the dysmenorrhea treatment product line.
Investors' Guide (Fiscal Year Ended March 2026)
Risks and Opportunities
At ASKA Pharmaceutical Holdings, we identify the most critical issues to address by properly analyzing the current situation and the associated “opportunities” and “risks” from the perspective of their relevance to our businesses and social contribution, with the aim of achieving sustainable growth across the Group.
In particular, by focusing on materialities where our strengths can be maximized—namely “Contributing to women’s health and animal health”—the entire Group works on each initiative, thereby contributing to the achievement of the SDGs.
Impact of Drug Price Revisions Aimed at Containing Medical Costs, and Our Strategic Shift toward New Drug Development
Government drug price revisions containing medical costs
previously took place biennially but shifted to an annual basis
in 2021. Amid this persistent risk of drug price reductions, the
business climate for pharmaceutical companies is more
challenging than ever. Although there have been positive signs
in such forms as repricing for unprofitable drugs in areas of
high medical needs (aimed at ensuring a stable supply of
pharmaceuticals while also addressing higher raw material
costs) and premiums to promote innovation in drug discovery,
annual drug price revisions continue to have a significant
impact, with price cuts for generic drugs tending to surpass
those for brand-name drugs. In response, the Group has
focused on new drug development, seeking to increase the
weighting of brand-name drugs with a view to stabilizing
margins. We aim to realize sustained growth by continuing to
roll out innovative new drugs.
ASKA Pharmaceutical’s Brand-name Drug Ratio, Drug Price Revision Rate, and Impact Rate
Financial and Capital Strategy
Strengthening capital efficiency management and financial strategy to maximize corporate value
(Updated: September 2025)
Business Environment Facing Execution of Our Medium-Term Management Plan
The ASKA Pharmaceutical Holdings Group is steadily
advancing Medium-Term Management Plan 2025 to achieve
sales of ¥70 billion, an operating profit margin of 8%, and
ROE of 8% in FY2025, the final year of the plan. In FY2024,
we achieved record-high sales of approximately ¥64 billion
and both the operating profit margin and ROE exceeded
8%, attesting to steady progress in implementing the
measures outlined in our growth strategy. These results fill us
with confidence in our ability to meet the targets set in
Medium-Term Management Plan 2025, as we also expect
FY2025 sales to get a boost from Hataphar, the Vietnamese
pharmaceutical company that we recently made a
consolidated subsidiary.
Currently, the domestic market for pharmaceuticals is
experiencing headwinds in the form of structural factors
such as annual drug price revisions and a declining domestic
population, creating a highly challenging business
environment for the industry. Pharmaceutical R&D entails
risks such as extended development periods and uncertainty
over the probability of success. As evidenced by numerous
reports of competitors suspending or halting development of
new drugs, R&D efforts do not always yield the expected
results. Under these conditions, we believe that for the
Group to continue enhancing corporate value over the
longer term, it is essential that we take a strategic approach
to building out and managing the business portfolio going
forward, including in new businesses and domains, in
addition to enhancing the value of products and expanding
the pipeline programs in our therapeutic areas.
Under Medium-Term Management Plan 2025, the ASKA
Pharmaceutical Holdings Group aims to become a “total
healthcare company with a strong foundation as a specialty
pharma company.” To achieve the goals set in this plan, we
have devised four visions and seven strategies. Among the
latter is “Overseas operations.” Although the domestic
market for prescription pharmaceuticals is expected to
remain flat or shrink, in countries in Southeast Asia and
other areas the pharmaceutical market is expanding amid a
rapid increase in medical needs driven by population growth,
rising income levels, and women’s advancement in society.
Vietnam, in particular, is regarded as a high-growth market
in view of its population of over 100 million, political
stability, and good public order. Vietnam has a GDP growth
rate of roughly 5–6% and its pharmaceutical market is
worth an estimated approximately ¥630 billion, expanding
at a brisk CAGR of 9.4%. Like Vietnam, the Philippines is a
country maintaining stable GDP growth while continuing to
expand its economy. Currently, its economic growth rate is a
robust 5-6%. The Philippines’ population is now
approximately 112.72 million* and its pharmaceutical
market is worth an estimated approximately ¥700 billion,
with more growth projected. Furthermore, the Philippines
ranks third in East Asia and the Pacific in the World
Economic Forum’s Global Gender Gap Index, demonstrating
progress in the advancement of women in society. On the
other hand, the Philippines is also known for regional
disparities in medical infrastructure and access to healthcare.
The Group believes that the Philippines represents a
promising market in which we can create new growth
opportunities through a strategy of addressing the health
issues of local women, drawing on strengths cultivated over
many years in Japan including our track record of stably
supplying high-quality products, our expertise in Ob/Gyn,
and our know-how concerning educational activities.
*Source: Japan External Trade Organization (JETRO)
FY2024 Progress toward Medium-Term Plan Targets and Future Challenges
Under the new holding company structure, our businesses
comprise the pharmaceutical business, the animal health
business, the testing business, and the overseas business.
We seek to maximize our corporate value by drawing on
these businesses’ collective knowledge, technologies, and
know-how, and by fully leveraging synergies among Group
companies.
In the pharmaceutical business, it is difficult to sustain
growth with existing products alone, given annual drug price
revisions and patent cliffs. To maintain stable profitability, it is
essential to continue developing or acquiring products with
strong growth potential. To “Continuously create new drugs
through advanced drug discovery,” one of the seven
strategies outlined in Medium-Term Management Plan 2025,
we are ramping up development and in-licensing activities
with a view to fleshing out our pipeline, and accelerating
efforts to enhance our discovery research structure. In
FY2024, we in-licensed a new basic technology for ion
channel drug discovery, expanding our research focus beyond
the three existing priority areas of internal medicine, Ob/Gyn,
and urology. New drug discovery is a long-term undertaking
that can span decades and requires substantial investment.
However, we believe that by expanding our revenue base by
launching new drugs, we can enhance corporate value over
the medium to long-term. We will continue to make strategic
investments with this long-term perspective in mind.
To date, our animal health business has centered on
products for industrial livestock such as cattle and pigs.
Recently, though, the companion animal market has been
expanding as growth in stay-at-home demand since the
COVID-19 pandemic has been accompanied by an increase
in households keeping cats and dogs as pets. We plan to
further expand our business in this field, and if we are to
accurately address market needs in both the industrial and
companion animal spheres we think it is important to
actively pursue non-organic growth opportunities such as
new product launches and M&A.
In the testing business, while working to build up our
presence in the clinical testing field, we are also actively
expanding into the pet market, launching a feline
hyperthyroidism test kit and a feline stress test kit in March
2025. Products such as these contribute to pet health
management from an animal welfare standpoint. As a new
initiative, we also launched a business focused on measuring
environmental pollutants and began accepting contracts to
measure levels of PFAS (per- and polyfluoroalkyl substances)
in blood and water. We are developing and launching a
range of test and measurement kits to meet the diverse
needs of modern society, seeking also to help solve
environmental issues.
In our overseas business, we think it essential to pursue
business in collaboration with partner companies well versed
in local conditions. In addition to making Hataphar a
consolidated subsidiary in February 2025, we acquired
roughly 20% of shares in Philippine pharmaceutical group
FTS Ambrose, making it an equity-method affiliate and
establishing a collaborative framework with FTS Ambrose
group company MedChoice Pharma. MedChoice Pharma’s
strength lies in the endocrine field, specifically in thyroid
hormone agents, where it has the second-largest market
share in the Philippines. We aim to accurately meet local
medical needs by harnessing both our expertise in raising
awareness of thyroid diseases in the Japanese market, and
our extensive experience in building a stable supply system. Through open innovation, the Group pursues not only
in-house drug discovery but also in-licensing opportunities
and joint research and development with external partners.
Beginning in FY2024, we launched a research grant program
for domestic academia to foster new collaboration
opportunities based on promising technologies.
We are accelerating the formulation of our next
medium-term management plan, incorporating input from
the frontlines of our pharmaceuticals, animal health, testing,
and overseas businesses. In addition to strengthening our
domestic operations centered on the growing Ob/Gyn field,
we are pursuing expansion into high-growth overseas markets.
We have set targets for sales and other indicators by
backcasting from our envisioned position 10 years from now,
and are working to formulate a sustainable and actionable
growth strategy that also considers non-organic growth.
Optimizing Management That is Conscious of Cost of Capital and Share Price
We have identified price-to-book ratio (PBR) improvement as
an important issue for management, and one that we
addressed in 2023 when we issued the press release “ASKA
Pharmaceutical Holdings Takes Action to Implement
Management That is Conscious of Cost of Capital and Share
Price.” In this press release, we outlined three initiatives to
implement such management under the headings “Growth
Strategy,” “Strengthen Shareholder Returns,” and
“Strengthen IR Activities.”
Under Growth Strategy, we are working to strengthen
our pharmaceutical business, establish new businesses, and
expand overseas, harnessing open innovation and external
collaborations to strengthen our position in specialty areas.
We plan to maintain or expand R&D investment at a level
slightly above 10% of sales, positioning R&D as a key driver
of sustainable growth. In our bid to become a total
healthcare company, we are also ramping up capital and
business alliances, M&A, and investments in promising fields.
Our corporate venture capital fund, established in 2023 to
address women’s health issues, has steadily expanded its
portfolio and now invests in eight companies. We are also
advancing our human resources strategy by nurturing
individuals who embrace challenges and can respond to
environmental change and global expansion. Under
Strengthen Shareholder Returns, we have shifted from our
previous stable dividend policy to a performance-linked
profit-sharing method indicating a dividend payout ratio of
30%, also setting a minimum dividend per share to ensure
ongoing consideration for dividend stability. In FY2024, we
increased the annual dividend per share by ¥15 to ¥55, and
we expect to pay an annual dividend of ¥55 in FY2025 as
well (interim dividend of ¥27 and year-end dividend of ¥28).
Under Strengthen IR Activities, we continue to hold
financial results briefings twice annually and have been
working to expand IR opportunities through initiatives such
as one-on-one meetings with institutional investors and
information sessions for individual investors. Furthermore, we
have won increased recognition from outside the Company
for our efforts to enhance the content of our integrated
report, and in FY2024 we received the Best IR Award for
Encouragement by the Japan Investor Relations Association.
The Best IR Award for Encouragement is a great honor, as it
underscores widespread recognition of our IR efforts.
We have maintained return on equity (ROE), a
benchmark for evaluating corporate value, at over 8% since
FY2021 and expect to achieve our target of 8% in FY2025,
the final year of Medium-Term Management Plan 2025. We
will continue working to sustainably enhance ROE and
demonstrate consistent growth to the market. To maintain
ROE above the cost of shareholders’ equity, we are working
to improve our product mix by focusing on the high-margin
new drug business, while also enhancing the profitability of
our core pharmaceutical business and expanding overseas
operations. In our next medium-term management plan,
which is currently being formulated, we aim to further
improve ROE through the implementation of new business
strategies. Through these initiatives, we seek to overcome
challenges such as rising personnel and material costs and
drug price revisions, and aim to strengthen our earnings
base and achieve sustainable growth.
Although our price-to-earnings ratio (PER), which plays
an important role as a measure of corporate value alongside
ROE, remains slightly below the industry average, it has been
steadily improving. Enhancing both ROE and PER will
contribute to a higher PBR. We have fostered this positive
cycle through initiatives such as disclosing our policies on
management conscious of cost of capital and share price
and strengthening IR activities, raising PBR from around 0.6x in 2023 to above 1x at present. However, we recognize that
surpassing 1x is only a starting point and that further
improvement is necessary. We aim to improve PBR by
enhancing our reputation, establishing a clear growth story,
strengthening communication not only with institutional
investors but also with individual investors, and deepening
understanding and support for our business activities.
In addition to enhancing profitability, optimizing the
capital structure remains an important priority. We are
rigorously managing working capital and fixed assets while
continuing to reduce cross-shareholdings deemed to have
limited strategic significance. These efforts to improve asset
efficiency are expected to contribute to higher ROE, which in
turn should lead to improvements in PER and PBR. As of
March 31, 2025, cross-shareholdings accounted for 16.7%
of consolidated net assets, down 1.7 percentage points from
the previous fiscal year-end.
We will continue to monitor ROE, PER, and PBR as
inter-related indicators and work to further strengthen this
virtuous cycle through profit growth, improved capital
efficiency, and dialogue with investors, with the goal of
maximizing corporate value.
PBR (price-to-book ratio) and ROE (return on equity)
Reduction in Cross-Shareholdings
Sustainable Management
The Group’s business is centered on pharmaceuticals, which
we recognize as having significant public and social
importance. Growing female participation in society and
efforts to address women’s health issues have drawn increasing
attention especially in recent years, even being referenced in
the government’s Basic Policy on Economic and Fiscal
Management and Reform. As part of these developments,
we have focused on the Ministry of Economy, Trade and
Industry’s 2024 report, Estimated Economic Losses due to
Health Issues Specific to Women. Based on the estimated
impact of menstrual symptoms on productivity and economic
activity presented in the report, we calculated the economic
impact of our pharmaceuticals in alleviating such symptoms,
while newly quantifying the effects of our disease awareness
initiatives. Through our efforts to quantify this impact, we
have clarified our economic contribution in this field.
These initiatives also underscore our social significance
from a sustainability perspective and are viewed as key
messages in our dialogue with stakeholders.
My Message as Director in Charge of Finance
With the recent change in president at this year’s General
Meeting of Shareholders, the Group is now transitioning to
a new stage in its evolution. Our mainstay pharmaceutical
business remains our top priority, and we will continue to
grow this business from the solid footing we have
established already. We recognize that accelerating global
expansion will be extremely important to our next medium
term management plan. We plan to strategically pursue this
objective with the aim of growing our global operations into
a central foundation for future growth. We will continue to
accurately identify new growth opportunities and boldly take
on risks, steadily executing our growth strategies and
strategic investments with a view to the future. In this
manner, we seek to sustainably enhance our corporate value
and meet the expectations of our shareholders. We
appreciate your ongoing support for these endeavors.
Continue to take initiatives to swiftly achieve a PBR of above 1x
1. Growth strategy
(Updated: June 2026)
- Implementation of growth strategy
- Optimal cash allocation
Cash Allocation ResultsPlan for FY2023–2025
FY2025 Financial Results and Mid-Term Management Plan Presentation
Cash Allocation Plan for FY2026–2028
FY2025 Financial Results and Mid-Term Management Plan Presentation
2. Strengthen shareholder returns
(Updated: June 2026)
- Beginning in the fiscal year ending March 2027, the Company will provide shareholder returns with a target total payout ratio of 40%, while aiming to enhance dividend levels in line with earnings growth.
- To clearly demonstrate our commitment to returning profits to shareholders, we have adopted a progressive dividend policy (excluding special dividends). Under this policy, we will, in principle, maintain or increase dividends and avoid dividend reductions, thereby ensuring stable and sustainable shareholder returns.