ASKA Pharmaceutical Holdings' Medium-Term Management Plan 2025
Presentation 1.25MB
Management Policy
In order to remain a company that is trusted by society, we will continue to contribute to healthcare by transforming into a leading company in the specialty areas within our domestic pharmaceutical business, and by creating pharmaceutical products that meet social needs through innovations. Furthermore, building upon our current business, we are aiming to become a “Total Healthcare Company” by conducting business operations domestically as well as internationally across the entire healthcare market of Prevention, Testing and Diagnostics, Treatment, and post-treatment.
Management Vision
Become a Total Healthcare Company with a Strong Foundation as a Specialty Pharma Company
Four Visions
- 1. Expand business scope centered on pharmaceutical products
- 2. Improve business operations through promoting open innovations
- 3. Become the top domestic company regarding our specialty areas for pharmaceutical products
- 4. Continue to be a company that holds Society’s trust
Target Figures
Sales
(consolidated) |
Operating profit rate
(Consolidated) |
ROE
(Return on Equity) |
70 billion yen |
8% |
8% |
Progress Chart
Seven Strategies
1. Enhancing Corporate Value by Strengthening Initiatives in the Specialty Areas
- Contribute to improving women's QOL as a leading company in the field of obstetrics and gynecology
- Promote awareness activities within the thyroid field and contribute to the treatment of potential patients
2. Continuous Creation of New Drugs through Advanced Drug Discovery
- Leverage open innovations to continuously create new drugs
- Promote and enhance global alliance activities as well as In-and-Out-licensing activities
3. Overseas Operations
- Develop and provide high-quality pharmaceuticals within Asia, and strengthen our presence
4. Providing New Value to Realize “Total Healthcare”
- Strengthen animal reproduction, immunity, and nutrition to support the health of companion animals
- Take on new business challenges within the Testing and Diagnostic business, etc.
5. Improving Operational Efficiency, managing Costs, and Reinforcing Our Financial Base
- Promote cost efficiency
- Promote operational efficiency by engaging in DX
6. Foster an Organizational Culture that Emphasizes thorough Compliance and Accountability
- Ensure company compliance and enhance trustworthiness from society
- Achieve a high quality and stable supply chain at any given time
- Strengthen corporate governance under the HD system
7. Develop Human Resources to Realize Growth Strategies
- Develop and attract human resources that are capable of responding to new business opportunities as well as the changing environment
- Create an environment in which a diverse range of talent can thrive, including women, professionals at every stage of their work journey and active seniors. “ASKA Pharmaceutical Holdings aims to achieve its financial targets and to contribute to the realization of SDGs by addressing social issues through its business activities.”
(7 Strategies)Medium-Term Management Plan 2025: Results of the 3rd year, and Future Efforts
Strategies |
Results of the 3rd year |
Future efforts |
① |
- Achieved No. 1 sales in the Ob/Gyn area
- RIFXIMA received approval for the pediatric indication
- Signed an agreement with SUSMED for joint R&D and marketing of therapeutic apps
|
- Contribute to women’s health through new approaches
- Further penetration of RIFXIMA
|
② |
- Initiated Ph I/II for AKP-022 (relugolix combination tablets)
- Preparation for filing LF111 to authorities
- Signed a joint research agreement to develop a new treatment for preeclampsia with Red Arrow Therapeutics
|
- Expansion of development pipeline
- Progress in the Development of AKP-022 (relugolix combination tablets)
- Creation of in-house seeds
|
③ |
- Executed capital increase to Hataphar (Vietnam)
- Hataphar's new plant WHO-GMP approval filed
|
- Step up collaboration
- Preparation for PIC/S GMP acquisition
|
④ |
- Established CVC fund and started investment
- Started selling training videos on women's health
- Launched new feed additives
- Launched two new hormone measurement kits
|
- Further investment in and promotion of areas peripheral to pharmaceuticals
- Fast-track launch of the Femtech business
- Promote the development of new products for veterinary use
- Early expansion of hormone measurement kits
|
⑤ |
- Continuation of cost reduction measures
(Cost of sales ratio:FY2020 54.0%→ FY2023 51.2%)
- Rethinking of unprofitable product portfolio
|
- Continued response to cost increases due to external factors
|
⑥ |
- Continued review of quality management system
- Continued implementation of compliance training
|
- Maintenance of quality culture
|
⑦ |
- Expansion of flexible work styles through various measures
- Recognized as the “White 500” enterprise for three consecutive years as ASKA HD, six consecutive years as ASKA Pharmaceutical
- Expansion of education and training programs
- Creation of work support grant and coverage of cancer insurance for employees
|
- Strengthen HR development through Next-Generation Leader Development Program
- Continue making investments that draw out the value of human resources
|
Financial and Capital Strategy
Recognition of Changes in the Business Environment and Progress of Medium-Term Management Plan 2025
We will need to continue with the implementation of the strategies of the medium-term management plan, increasing profitability while improving capital efficiency through appropriate capital allocation. The Group will maintain a balance of investing in growth and improving capital efficiency as we strive to enhance our corporate value.
Growth Investments
As the core of the Group is the pharmaceutical business, we recognize that R&D investment is a source of future earnings and is vital for increasing corporate value. In drug discovery research, we are promoting open innovation and utilizing external resources. In business development, we are strengthening our strategy of in-licensing drugs under development and enhancing our pipeline in specialty areas and fields of expertise. Aiming to become a total healthcare company, we will actively invest in promising business fields, not only in pharmaceutical products, while also pursuing capital alliances with other companies and M&A.
Furthermore, one of the Group’s medium-term management plan strategies is to “Develop Human Resources to Realize Growth Strategies.” To enhance our specialty and ability to create, we are working toward various goals such as developing and acquiring human resources who can respond to new businesses and changes in the environment, and creating a workplace environment where diverse human resources can play an active role. Achieving sustainable corporate value enhancement depends on linking management and human resources strategies. With this in mind, we view human resources, the most important of all management resources, as a form of capital, and work to maximize their capabilities through autonomous learning, which leads to value creation.
Assessment of Financial Soundness
We view ensuring the stability of our financial base as an important management issue for the Group. On the other hand, from the viewpoint of capital efficiency, the Group judges appropriately whether or not to continue cross-shareholdings. We strive to reduce the holding of shares determined not to have sufficient meaning as appropriate.
We will also continue working to balance equity and interest-bearing debt while ensuring a stable financial base and enhancing capital efficiency by thoroughly examining investment projects and properly controlling risks and costs.
Policy for Returns to Shareholders
The Group regards the return of profits to shareholders as an important management issue. We aim to return appropriate profits to our shareholders by achieving strong results and continuously improving our corporate value. Our basic policy regarding dividends is to maintain stable dividends while considering necessary management resources such as internal reserves for long-term business development and future funding needs.
We will also continue working to balance equity and interest-bearing debt while ensuring a stable financial base and enhancing capital efficiency by thoroughly examining investment projects and properly controlling risks and costs.
Continue to take initiatives to swiftly achieve a PBR of above 1x
1. Growth strategy
- Implementation of growth strategy
- Optimal cash allocation
2. Strengthen shareholder returns
- Dividend payout benchmark ratio of 30% from FY2024
- Minimum annual dividend of 30 yen per share