Achieving Rapid Progress in our Development Pipeline through the Efficient Use of Management Resources
• Implementing the principles of selection and concentration in our business portfolio
• Improving profitability by reorganizing production bases
• Further developing our world-class therapeutic antibody business
Fundamental Strategies
R&D
• Leverage our leading-edge biotechnologies, primarily antibody technologies, to promote discovery research in key areas—oncology, nephrology, and immunology—and enhance our development pipeline
– Commence development of four products each year
– Integrate R&D facilities to enhance efficiencies, complete new facility in Tokyo Research Park in April 2010
– Leverage external networks, such as the La Jolla Institute for Allergy & Immunology (LIAI), in the United States • Accelerate new drug development through the effective utilization of overseas development bases and strive to quickly acquire Proof of Concept (POC) for several products in development
– Expand the regions in which clinical trials are implemented, such as to emerging nations
– Join and contribute to global clinical trial systems in Asia
– Build a global structure for in-house development • Obtain manufacturing approval for two or more products each year (including additional indications)
Production
• Increase production efficiency by reorganizing production facilities and promoting outsourcing
– Optimize the use of facilities throughout the Group
• Begin operation of new manufacturing facilities with large-scale animal cell culture tanks for investigational therapeutic antibodies
– March 2010—Complete construction inside the Bio Process Research and Development Laboratories (Takasaki)
Domestic Sales
• Continue to expand the market share for existing core products
– Expand market share for erythropoiesis stimulating agents (ESA) in hemodialysis and non-dialysis
– Continue to grow Regpara® sales
– Maximize Allelock® value
• Rapidly penetrate markets with new products
– Promptly earn market acceptance for Asacol® and HFT-290
– Achieve smooth transfer of Permax® sales
• Reorganize marketing structure to improve sales efficiency
– Optimize structure to improve medical representative (MR) productivity
Overseas Operations
• Expand sales in Asia by strengthening in-house sales capabilities, improve reliability assurance system
– Integrate locations and sales channels and expand product lineups
– Improve reliability assurance system
• Improve organizations in the United States and Europe with a view to commencing new drug sales
– Improve organization in line with progress in product development (including the consideration of alliances)
Fundamental Strategies • Expand sales of core products, such as high-value-added amino acids
• Strengthen alliances in health care areas within the Kirin Group
• Expand production infrastructure to ensure a steady supply of pharmaceutical raw materials and fine chemical products
Factors Supporting Higher Profits
• Cost reductions (from technology development, etc.): About ¥2.0 billion
• Profit increase from higher amino acid sales volumes (8% annual growth): About ¥2.5 billion
Fundamental Strategies
• Strengthen business fundamentals to stabilize profits and expand sales of core products
• Expand sales of environment-friendly chemical products, advance global development
• Maintain a safe and stable operating structure Factors Supporting Higher Profits
• Increased sales volumes from rise in demand for chemical products accompanying global economic recovery
• Higher sales of environment-friendly functional products—one of our strengths
• Revision of product prices accompanying increased raw material and fuel prices
• Effective January 1, 2010, changes in consolidated subsidiaries’ segments resulting in transfer of annual sales (over ¥40 billion) from the Other Segment to the Chemicals Segment
– Kashiwagi Corporation
– Miyako Kagaku Co., Ltd.
* Fiscal 2009/12 was a nine-month period due to a change in the Company’s fiscal year-end. The figures in the 2009/12 columns in this section are for the 12-month period from January 1, 2009, to December 31, 2009, and consist of the sum of the consolidated results in the fourth quarter of fiscal 2009/03 (the three month period from January 1, 2009, to March 31, 2009) and the consolidated results in fiscal 2009/12 (the nine-month period from April 1, 2009, to December 31, 2009).
