Download What is New Value?

to Our Stakeholders
The Question We Face:
What is New Value?
We are now in the midst of unprecedented change. In particular,
However, no matter what type of changes we face, we must
in the past several years the management environment in the
always remember the starting point for all our business activities—
domestic pharmaceutical industry has worsened rapidly. Major
“Everything we do is for the patients.” Remicade, a core product,
trends include lower success rates in new drug creation and
was launched in 2002 as a treatment agent for Crohn’s disease.
changes in the market. In addition, the Japanese government has
After its launch, we steadily took steps to promote post-marketing
taken steps to limit health care spending, including stepped up
development. These steps included additional indications for rheu-
measures to reduce spending on pharmaceuticals. Initiatives to
matoid arthritis (RA) and ulcerative colitis and dose escalation for
promote the use of generics have had a rapidly increasing influ-
RA and Crohn’s disease. Through these initiatives, Remicade has
ence on long-listed products. Many domestic companies that
grown into a drug that makes a contribution to many patients. As
make new drugs have relied on long-listed drugs as an important
a result, in fiscal 2013 combined sales of Remicade and Simponi,
source of revenues, but the industry is now entering a stage in
a new RA treatment agent, surpassed ¥100.0 billion on a national
which that business model no longer functions.
health insurance (NHI) drug price basis. I believe this success was
In this environment, Mitsubishi Tanabe Pharma is working to
the result of the value of the product itself and the value accumu-
implement the Medium-Term Management Plan 11–15, which has
lated by the Company together with health care professionals,
“New Value Creation” as its key concept. Implementing reforms
patients, and their families.
to become a “company that can continue to create new value”
No matter how superior a drug is, without the process of post-
is nothing more than implementing reforms to a new business
marketing development that establishes effectiveness and safety,
model. In the first three years of the plan, we have launched
it cannot make a contribution to patients. Our business activities
a number of new products and royalty revenues from out-licensed
do not end with the creation of a new drug. They continue on in
products have become a pillar of our revenues. In addition,
the nurturing of that drug.
we have implemented reforms targeting the establishment of
Moving forward, we will continually return to our starting point
a new business model that addresses the changes in the business
of “Everything we do is for the patients” and work to contribute
environment. These steps have included reorganizations and other
to the health of patients around the world by repeating the
restructuring initiatives.
processes of drug discovery and post-marketing development. To
In June 2014, the Company transitioned to a new management
that end, the Company’s managers and all other employees will
system. Michihiro Tsuchiya, who served as president for five years,
ask themselves “What is value for the patient?” and continually
became chairman, and Masayuki Mitsuka was appointed president.
take on the challenge of creating new value. In addition, we will
Under the new system, we will further accelerate initiatives
strive to increase management transparency and achieve sustained
targeting these reforms.
growth. I would like to ask our shareholders, investors, and other
stakeholders for their continued understanding and support for
Mitsubishi Tanabe Pharma in the years ahead.
August 2014
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Mitsubishi Tanabe Pharma Corporate Report 2014
michihiro tsuchiya
masayuki mitsuka
Chairman of the Board &
Representative Director
President &
Representative Director
OVERViEW OF mEDiUm-tERm manaGEmEnt PLan 11–15
Key Concept:
New Value Creation
Period: April 2011 to March 2016 (five years)
Strategic Challenges:
Objectives that Will be Realized under
the medium-term management Plan 11–15:
1
Bolstering Our ability to Discover
new Drugs
Becoming a Company that Can Continue
to Create New Value
2
advancing Domestic Operations,
Centered on new Drugs
3
Building a Foundation for the Expansion
of Overseas Operations
4
accelerating Operational and
Structural Reforms
Building a Foundation for Future Growth
• Taking on the challenge of unmet medical needs*
• Discovering drugs and building a foundation to provide them around the world
• Investing aggressively in future growth
Steadily nurturing and Providing new Products and
Priority Products, Centered on Remicade
* Unmet medical needs: Medical needs that are not addressed adequately by existing therapies.
Mitsubishi Tanabe Pharma Corporate Report 2014
07