News Releases
Overview of the Mochida Pharmaceutical Group's
"04-06 Medium-Term Management Plan" for the Fiscal Years 2004-2006
With an aim to become a comprehensive health care company
April 28, 2004
Dear All,
The Mochida Pharmaceutical Group has conducted business activities in three major areas: its pharmaceutical business, its healthcare business, and its medical equipment business. As a new core business, it will also promote its health-related business with a primary emphasis on health food products, and other new ventures inviting fresh ideas from inside and outside of the company.
Our group plans to establish its position as a unique and characteristically comprehensive health care company by addressing these business areas with true innovation. In this 04-06 Mid-term Management Plan, the coming three years will be devoted to establishing foundations towards becoming a comprehensive health care company. Continuing with the basic strategy to focus on profit and ongoing future investment, we will continue to strive toward the following three points, taking advantage of our agility and responsiveness as a mid-sized company:
(1) Establishing businesses and specialized fields where Mochida has a competitive advantage
We will promote our strategy to become "the only company" by strengthening our activities in specialized fields, so that we become our customers first and only choice, and thus earn commendations like "only Mochida can do it" from every field of business.
(2) Placing a high priority on partnerships
The Mochida Pharmaceutical Group will continue to emphasize our relationships with partners, and carry out our strategy to strengthen competitive fields and complement uncompetitive fields by uniting internal and external resources.
(3) Thorough streamlining of resources
We will reexamine all resources and their allocation in each of our business units, in order to better align our business activities, e.g. by splitting off some divisions into separate companies. We also aim to promote economically-minded "muscular" management to concentrate our resources into core areas of corporate competence.
*Business Targets for the 2006 Fiscal Year (Consolidated)
| Sales | 72 billion yen (Projected from 64.3 billion yen in the 2003 fiscal year) |
| Operating income | 7 billion yen (Projected from 5.9 billion yen in the 2003 fiscal year) |
| R&D Expenses | 10 billion yen (Projected from 9.2 billion yen in the 2003 fiscal year) |
| Productivity per employee | 40+ million yen (Projected from 38 million yen in the 2003 fiscal year) |
[Supporting documentation]
- Promotion of Restructuring
The Mochida Pharmaceutical Group strives to promote structural transformation of the entire group considering every possible aspect. The paradigm is that of a truly "muscular" management -- able to respond agilely, powerfully and efficiently to changes in the business environment.
a) Innovation toward complete independence of business units
In order to clarify each division's responsibility and to conduct activities suitable to the business environments of each division on an expedited basis, Mochida Pharmaceutical Group plans to split off several divisions into separate companies. In October 2003, the Medical Electronics and Equipment Division will be split off into Mochida Medical Systems Co., Ltd, and in April 2004 the Healthcare Product Division will be split off into Mochida Healthcare Co., Ltd. In April 2005 the Drug Manufacturing Division will be split off into Mochida Pharmaceutical Plant Co., Ltd.Business units such as Pharmaceutical Research Center, Drug Development, Pharmaceutical Laboratory, and Marketing will be streamlined for efficient business activities taking account of the environment specific to each business. In addition to the innovation of business divisions, headquarters will realign its functions and streamline business support operations. Headquarters will also aim to accelerate decision-making and enhance operational efficiency by making a clear distinction between corporate management strategy and business support operations.
b) Innovations for improving company-wide productivity
The group will soon review manpower strategy, personnel allocation, and personnel utilization from the viewpoint of optimization of human resources, in accordance with reformation of the group management system. When in-house manpower is insufficient for a given task, we will seek human resources outside of the company, and flexibly modify our employment system to accommodate the utilization of temporary workers.The company-wide productivity improvement project, established cross-sectionally in 2002 under the direct control of the president, was revised into the secondary project in 2004. To maximize project results, our group will enhance collaboration between divisions, and aim to increase overall productivity by 10% by setting specific targets.
- Business Strategies
1) Pharmaceutical Research Center
The Pharmaceutical Research Center, independent from the fiscal year 2003, aims to license out three new compounds by the end of the 2005 fiscal year, within its five current research fields: nerve systems, allergy, metabolism/diabetes, circulatory, and biotechnology.
2) Pharmaceuticals
We will focus resources on four major fields in order to be a "specialty pharma":
- Circulatory
- Obstetrics and gynecology
- Dermatology
- Emergency medicine
a) Development
Our group will seek:- Drug development with optimal organizational structuring and resource allocation for accelerating drug development and improving accuracy, in close cooperation with our external partners
- To ensure with the certain approval and release of both dienogest (a treatment for endometriosis) and imiquimod (a treatment for condyloma acuminatum) to market within the fiscal year 2008
- To shorten the development period of escitalopram (an antidepressant) and Epadel (a treatment for dementia) as much as possible with actual release of the drugs on the market
- Promotion of the ongoing development of drugs with enormous potential based on long-term life cycle management, such as the extension of drug indications after release
b) Research
We will conduct original pharmaceutical research by ascertaining needs from a wide range of healthcare settings, including not only our products but also those of our competitors.c) Marketing
Our group will:- Foster and maintain a roster of 700 medical representatives (MRs) who can each capably cover all the four major fields
- Introduce multiple products in which we specialize and create efficiency in sales activities
- Reinforce our life cycle management towards the extension of our current product life and the maximization of product value
- Position our anti-lipidemic agent Epadel at the front rank of therapeutic drugs for arteriosclerosis by widely promoting its various pharmacological benefits, aiming at annual sales of 33 billion yen.
- Aim for annual sales of our Ca antagonist Atelec to reaching 10 billion yen
d) Manufacturing
Mochida Pharmaceutical Plant Co., Ltd. will be split off from headquarters in April 2005. We will promote the commissioned manufacturing of high-quality medical products with special technologies, in a newly constructed plant featuring state-of-the-art facilities that meet and exceed global standards.3) Mochida Healthcare Co., Ltd.
The Healthcare Product Division has seen thirty years of success as a pioneer in the business of baby products such as Skina Babe (a bath additive product with top market share for decades) and non-irritating skin care products. The division was split off from headquarters into Mochida Healthcare in April 2004. Building upon its high rate of approval and popularity among dermatologists, obstetricians and gynecologists, Mochida Healthcare will continue to open up the market through strengthened marketing, releasing more new products, and further establishing its brand image.
4) Mochida Medical Systems Co., Ltd.
As a result of its great contribution to perinatal and neonatal care in Japan, Mochida Medical Systems now occupies top market share for the sales of ultrasonic diagnostic equipment in obstetrics and gynecology. We will not only strengthen our position in the field, but also expand our reach into other medical disciplines as well.