Daiichi Sankyo Group Value Report 2013 From this year onwards, the Daiichi Sankyo Group will combine its Annual Report and its CSR Report into an integrated Value Report. The Group interacts with multiple members of society, so rather than dividing up our activities into policy, strategy, and financial information in one report, and efforts to realize a sustainable society in another, we feel that the value that we offer is best grasped in a comprehensive manner.
The need for quality healthcare and medicine are expected to become a critical and social concern globally in the next fifty years. In this rapidly changing environment, the Daiichi Sankyo Group strives to become a global solution provider that has a good understanding of society’s needs. This objective was the starting point when we formulated our Third Mid-term Business Management Plan (FY2013-2017) in March this year. Following this plan, we target to become a Global Pharma Innovator, capable of sustainable growth, while meeting diverse medical needs throughout the world.
FY2013, being the first year of the third plan is particularly important. We will continue taking steps towards increasing both sales and income, while realizing sales of at least one trillion yen and bolstering market competitiveness. We expect continued understanding and support from our stakeholders.
June, 2013 Joji Nakayama Representative Director, President and CEO CONTENTS
02 Daiichi Sankyo’s Mission Responsible Corporate Activities
03 Communication Policy Promote Ethical Business Management 44 in Compliance with Law 04 Global Business Deployment Mutual Growth of the Employees and 06 Highlights of Financial and Non-Financial Data 50 the Company
08 Highlights FY2012 Enhancement of Communication with 56 Stakeholders
Management Improvement of 64 Promoting Environmental Management 10 Discussion Corporate Value Broaden the Opportunities of Access 72 to Medical Services 16 Third Mid-term Business Management Plan 76 Social Contribution Activities Value Creation through Business Operation 82 Corporate Governance 20 Marketing & Sales 30 Research and Development 86 Financial Data 36 Pharmaceutical Technology 94 ESG Data 38 Supply Chain 96 Corporate Information 40 Reliability Assurance
Daiichi Sankyo Group Value Report 2013 01 Daiichi Sankyo’s Mission
To contribute to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs.
There are still many diseases for which the level of satisfaction with treatment is insuf ficient or for which there is no established treatment. Pharmaceutical companies play an integral part in medical treatment and are depended upon to provide solutions to these problems.
We have established Our Values & Commitments as the criteria of the value judgment of our business activity and decision making. In addition, we have established the DAIICHI SANKYO Group Corporate Conduct Charter to comply any law and rule on global corporate activities and act with high ethical standards and social common sense worthy of a company engaged in a business that affects human lives.
Our Values & Commitments
Innovation -Our Imperative- Integrity -Our Strength- Accountability -Our Culture- 1. To create first-in-class and 4. To provide the highest quality 7. To be accountable for best-in-class drugs medical information achieving our goals 2. To take a global perspective, 5. To provide a stable supply of 8. To demonstrate professionalism, and respect local values top-quality pharmaceutical products respect for others and teamwork 3. To foster intellectual curiosity and 6. To be an ethical, trusted, strategic insight and respectful partner
DAIICHI SANKYO Group Corporate Conduct Charter
Article 1 We diligently address medical needs by providing beneficial, safe, and reliable pharmaceuticals and services. Article 2 We conduct business in an ethical, fair and competitive manner, and maintain a healthy and professional relationship with our stakeholders, which include medical professionals and governments. Article 3 We actively communicate with our stakeholders by disclosing corporate information in a timely and appropriate manner in accordance with the principles of corporate accountability. We take appropriate measures to manage and protect personal and customer information and the confidential information of our and other companies. Article 4 The globalization of business activities requires that we operate by being compliant with the laws of each country and region, and by being respectful to all international norms including human rights, various cultures and customs. As a result, we contribute to the development of the local economy and society. Article 5 We respect diversity in the personal values, qualities and individuality of our employees, and ensure a safe and working environment that does not tolerate inappropriate treatment such as discrimination or harassment. We provide employees the opportunity to develop their skills and abilities for the mutual development of the employee and the corporation. Article 6 We responsibly manage the environmental impact of our operations as environmental issues are common challenges for mankind and such concerns are integral to our corporate activities and our very survival. Article 7 We actively engage in community activities and philanthropic programs focused on social causes. Article 8 We do not support or conduct our business with antisocial forces, prohibited entities or groups that may threaten the order or safety of civil society. Article 9 Executives of the DAIICHI SANKYO Group actively build and maintain effective systems to implement this Charter, ensure it is understood by all Group companies and make this Charter known to our business partners. Article 10 If the Charter is violated, executives of DAIICHI SANKYO Group Companies ensure that there is a commitment to determine the cause of infringement, take corrective action as necessary and make efforts to prevent similar violations in the future. Executives are accountable for promptly making required disclosures and upon discerning responsibility regarding the infringement, impose appropriate disciplinary action, including upon Executives themselves.
02 Daiichi Sankyo Group Value Report 2013 Communication Policy
Daiichi Sankyo’s Mission 03 version Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi (this repor t) November published November published +81-3-6225-1067 +81-3-6225-1126 Corporate Communications DepartmentCorporate Communications CSR Department CSR Tok yo, 103-8426, Japan 3-5-1, Nihonbashi-honcho, Chuo-ku, Chuo-ku, Nihonbashi-honcho, 3-5-1, Website April 20121, toMarch 31, 2013(fiscal 2012)
Tel Head of fice DAIICHI SANK YO CO., LTD. Period Covered Period Inquiries value improvement value aiming at the corporate corporate the at aiming environment and society The concrete efforts on efforts on concrete The The business development development business The governance Corporate ● ● ● For medical professionals medical For investors and shareholders For For patients and citizens and patients For information Employment profile Corporate ● ● ● ● ● Daiichi Sankyo Group Value Report 2013 http://www.daiichisankyo.com Latest Website version information July published published July URL
The outline of the Third Mid-term Mid-term Third the of outline The Business Management Plan Management Business The idea to sustainable growth sustainable to idea The
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For the latest information, please refer our company’s website. company’s refer please our information, latest the For In fiscal 2013, the version published in July mainly includes the idea to sustainable growth sustainable to idea the includes mainly July in published version the fiscal 2013, In This report contains future prospects such as the from conclusions our on prospectsThesebased are factors that couldinfluence future prospects areincluding achieve differentExamples results prospects. from these of or fluctuation of exchange rates that surround the the surround rates that exchange of fluctuation or Company’s plan, strategy, and business performance. performance. business and strategy, plan, Company’s domain. business Company’s be advised that the actual business performance business be actual advised be the that will competition, environment, economic the to limited not but development product circumstances in change laws, related information that is currently available. Therefore, pleasecurrently available. is information that influenced by various risks and uncer tainties and could Precautions for future prospects future for Precautions The “Daiichi Sankyo Group Value Report” communicates our group’s management philosophy managementphilosophy group’s Report” our communicates SankyoValue Group “Daiichi The
value improvement, the concrete efforts on society and environment, and the current situation situation current the and efforts concrete environment, society the and on improvement, value about our corporate governance. governance. corporate our about and strategy in an easy-to-understand manner to all stakeholders, such as investmentinstitutes, version the addition, in and, Plan Management Business Mid-term Third the of outline the and communication tool that enablesunderstanding of the corporate values, growthpotential and
medical professionals, the general population and our group’s employees. It is also a useful new new useful a also is It employees. group’s our and population general the professionals, medical business continuity. corporate the at aiming development business reports the report) (this November published Communication Policy Communication Global Business Deployment
Europe Sales JPY 60.6 Bn ( 6 .1%)
Ranbaxy Group Sales JPY 185.4 Bn (18.6 %)
Sales by Region (FY2012)
Ranbaxy Group Daiichi Sankyo Group 185.4 812.4
Other regions 40.9
Europe JPY 9 97.9 Bn 60.6
Nor th America Japan 182.3 528.6
04 Daiichi Sankyo Group Value Report 2013 Global Business Deployment 05 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi (18.3%) Japan 9,251 JPY 182.3 Bn 8,277 Overseas Sales Nor th America Daiichi Sankyo & Ranbaxy & Sankyo Daiichi ■ people (4.1%) 32,229 Ranbaxy ■ (53.0%) JPY 40.9 Bn 14,701 (on consolidated basis, as of March 31, 2013) 31, March of as basis, consolidated (on Ranbaxy Group Number of Employees Region by Sales
Daiichi Sankyo Other Regions ■
JPY 528.6 Bn 528.6 JPY Sales Japan Highlights of Financial and Non-Financial Data
DAIICHI SANKYO COMPANY, LIMITED and Consolidated Subsidiaries
Economic Unit FY2008 FY2009 F Y2010 F Y 2 011 F Y2012
Millions Net sales of yen 842,147 952,105 967,365 938,677 997,852
Millions Operating income of yen 88,870 95,509 122,143 98,202 100,516
Millions Net income (loss) of yen △215,499 41,852 70,121 10,383 66,621
Millions Sales outside Japan of yen 373,254 482,337 489,735 469,085 486,658
Sales outside Japan to net sales % 44.3 50.7 50.6 50.0 48.8
Millions R&D expenses of yen 184,539 196,802 194,330 185,052 183,047
R&D expenses to net sales % 21.9 20.7 20.1 19.7 18.3
Depreciation and amortization Millions 40,582 45,942 43,945 46,305 41,423 expenses of yen
Millions Total assets of yen 1,494,599 1,489,510 1,480,240 1,518,479 1,644,071
Millions Total net assets of yen 888,617 889,508 887,702 832,749 915,745
Return on shareholders’ equity % △20.5 4.9 8.2 1.3 7.9
Net income (loss) per share of Yen △304.22 59.45 99.62 14.75 94.64 common stock
Cash dividends per share Yen 80 60 60 60 60
For updates and detailed information on the Company, please refer to the “Investor Relations” page of our corporate website.
● Quarterly Results ● Financial Highlights ● Financial Summary ● IR Document Library
URL http://www.daiichisankyo.com/media_investors/investor_relations
TOP > Media & Investors > Investor Relations
06 Daiichi Sankyo Group Value Report 2013 Highlights of Financial and Non-Financial Data 07 2 4 4 10 14 36 3.6 100 0.39 0.40 0.40 9,251 8,616 8,616 69.70 3,659 3,659 16,199 13,535 13,535 22,978 32,229 6,087.1 164,914 164,914 521,550 521,550 F Y2012 F Y2012 F Y2012 2 4 4 13 10 43 3.3 100 0.93 0.93 0.44 0.44 70.78 70.78 7,935 9,308 9,308 3,499 3,499 15,651 15,651 22,621 31,929 13,327 5,704.0 159,563 159,563 473,233 473,233 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi F Y 2 011 F Y 2 011 F Y 2 011 2 4 4 ー 12 10 44 2.9 100 0.62 0.33 0.33 74.21 7,842 3,505 9,002 9,002 21,486 21,486 13,206 30,488 30,488 3,474.6 3,474.6 481,612 481,612 157,016 F Y2010 F Y2010 F Y2010 3 3 2 2 t % % % ー Sites Unit Unit Unit t-CO t-CO Million Million Sheets 1,000m 1,000m Persons Persons Persons Persons Persons Persons Persons Persons 1,000 GJ 1,000 GJ 1,000 Scope Scope Scope Outside Japan Outside Global Global Global Global Global Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated In Japan In In Japan In Japan In Japan In In Japan In Japan In Japan In Japan In Japan In Japan emissions 2 Amount of OfficePaper Consumed Amounts handled of PRTR Substances Water Use award winner s CO managerial positions Number of Outside Statutor y Auditors Number of Statutor y Auditors Number of Directors Directors Outside of Number Number of company-wide Number of employees Final Disposal Rate of Waste Disposal Final I S O 14 0 0 1- c e r t i f i e d s i t e s Labor Union ParticipationLabor Union Rate Percentage of women in Percentage in of women Frequency of industrial accidents Energy Use Society Governance Environmental Highlights FY2012
April 17 Launched RANMARK subcutaneous injection, a treatment for bone complications stemming from multiple myeloma and bone metastases from solid tumors Daiichi Sankyo launched RANMARK April 25 (denosumab) in Japan, the world's Ranbaxy launched Synriam, first human monoclonal antibody to target RANKL Ligand, which new age cure for malaria to the Nation inhibits the activity of osteoclasts. Ranbaxy Laboratories Limited launched Synriam, the treatment for uncomplicated plasmodium falciparum malaria, in India. This is the first novel drug indigenously developed and commercialized by an Indian corporation. April 18 Participation in United Nations Global Compact Daiichi Sankyo Co., Ltd. agreed with the Ten Principles in the areas of human rights, labour, the environment, and anti-corruption suggested by the United Nations, and par ticipated in the Global Compact, a global framework to realize sustainable growth.
2012 April May June July August September
July 2
May 8 Commencement of the businesses of Japan Vaccine Co., Ltd. Established strategic collaboration with Coherus BioSciences, Inc. Japan Vaccine Co., Ltd., a joint venture between Daiichi Sankyo to develop and commercialize Co., Ltd. and Gla xoSmithKline biosimilar candidates K.K., started business activities specializing in the vaccine For an early entry into the biosimilars market, business with the aim of Daiichi Sankyo established a strategic protecting a broad range of collaboration with Coherus BioSciences to people, from infants to elderly develop and commercialize biosimilar forms people, from infectious diseases. of Etanercept and Rituximab in Japan, South Korea and Taiwan.
Main External Recognitions in FY2012
Daiichi Sankyo has been included in the Asia Daiichi Sankyo has been included Pacific Index of the Dow Jones Sustainability for four consecutive years in Indexes for three consecutive years. the FTSE4Good Global Index, an index of firms that meet globally recognized corporate responsibility standards.
08 Daiichi Sankyo Group Value Report 2013 Highlights FY2012 09 2013 March Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi February 1986 RUG Ltd. RUG 1986 ⓒ March 25 March The treatment is administered subcutaneously administered once treatmentThe is subcutaneous injection 60mg syringes (denosumab), (denosumab), syringes 60mg injection subcutaneous every six months for osteoporosis by specifically specifically by osteoporosis for months six every a novel treatment for osteoporosis, in Japan. Japan. treatment in osteoporosis, for novel a and marketing and “PRALIAof subcutaneous osteoporosis resorption in osteoporosis. in resorption manufacturing and marketing of PRALIA of marketing and manufacturing inhibitingRANKL, essential an mediator forbone DaiichiSank yo obtained approval for the injection syringe,” a new treatmentnew a for injection syringe,” Receivedapproval for themanufacturing January December November September 10 September September2, 9 February 14 Ties Theater for 2012” cancerpatients and their family members, who were motivated with once-a-day administration. with effective for 24 hours and improves blood blood improves and hours effective 24 for between after meals levels and glucose of type-2 diabetes in Japan. TENELIA TENELIA Japan. in diabetes type-2 of andinspired by thismusical theater. OnSeptember 2nd Family and Presents Sankyo 9th, “Daiichi 2012, Daiichiheld Sankyo Corporation to market new age treatment treatment age new market to Corporation (teneligliptin)DPP-4 inhibitor a is that is partnered with Mitsubishi Tanabe Pharma Pharma partneredTanabe Mitsubishi with Based strategic a in alliance,Daiichi Sankyo Launched TENELIA tablets for curing type 2 diabetes type tabletsLaunched TENELIA 2 curing for Daiichi Sankyo Presents Presents Sankyo Daiichi 2012 Theater Ties Family Through jointly investing with Innovation Network technology. The Institute’s active compound is ENA ENA is activecompound Institute’s The technology. founded the Orphan Disease Treatment Institute. In In Disease Orphan the Institute. founded Treatment for Duchenne muscular muscular dystrophyDuchenne for utilizing oligonucleotide, which is a modified nucleic acid. nucleic modified a is which oligonucleotide, cooperation with this new company, the Daiichi Sankyo Daiichi the company, new cooperation this with Corporation of Japan, and others, Daiichi Sankyo Sankyo Daiichi others, and Japan, of Corporation Group intends to develop a treatment Duchenne a develop for to intends Group muscular dystrophy by utilizing its proprietaryits dystrophymuscular utilizing by proprietary technology Development of a nucleic acid treatment acid nucleic a of Development October Management Discussion April 24, 2013 Joji NA K AYA M A Tetsuo K I TAGAWA Representative Director, President and CEO Professor of Aoyama Gakuin University Daiichi Sankyo Co., Ltd. Graduate School of International Management
“In the upcoming decades, we shall become a world’s leading company providing effective solutions for diverse health and medical needs on a global scale.”— While formulating our Third Mid-term Business Management Plan in March 2013, we reaffirmed this declaration to exist as a corporation that is truly needed by society when considering long-term changes to the business environment. Professor Tetsuo KITAGAWA, who has worked as a leading analyst in the pharmaceutical industry and now a prominent researcher in the field of capital markets, IR and corporate value, discussed Daiichi Sankyo’s position on “Infrastructure for long-term sustainable growth and increased corporate value” with CEO Joji NAKAYAMA. With a long-term perspective, we seek sustainable improvement of corporate value by staying ahead of the times.
10 Daiichi Sankyo Group Value Report 2013 Management Discussion 11 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Today, not just our company but There is an extremely high level of We have initiatedWe several steps including Research on rare diseases opens up up opens diseases rare on Research Investors of today are oftenprone focus to
your company first indicated a long-term outlook outlook long-term a indicated firstcompany your this challenge. new many discovering possibility or the facing the serious problem of lost productivity lost of problem serious the facing target to become a corporation recognized by by recognized corporation a become to target while announcing its current Mid-term Business Business Mid-term current its announcing while scale opportunities and we should constantly be constantlybe should we opportunitiesscale and situations. such of aware seeds. I hope that your company will accept will company your that hope I seeds. social contribution, an area which cannot be be cannot which area an contribution, social accomplished only conducting through examples newof discoveries large- into turning worry the about I results. short-term on only alliances withacademia, par tnering with rarea disease treatment.Insummary, we can society we that and investors shareholders, domestic such utilizing of capable companies also understand the needalso for bold investment and the corporation must be giving persuasive ordinary business. not. do investors who other overseas pharmaceutical companies and and companies pharmaceutical overseas continue to be proud of. explanations patiently. differences between investors who, like me, see see me, like who, investors between differences pharmaceutical products. In the past, we have have we past, the In pharmaceutical products. unmet medical needs. Therefore, we must look look must we Therefore, needs. medical unmet harder for ways to provide our society new pharmaceutical companies in the long-term, and and long-term, the pharmaceutical in companies utilizingpublic-private cooperation fast-paceto discovery medical drug process unmet new for Dystrophy, Muscular Duchenne including needs particularly Japan, in development and research many aren’t there However, research. basic in rather the overall pharmaceutical industry is pharmaceutical industryoverall is rather the in research and development.is that The weneed larger tobe able toserve issue patients with innovative medicines and serve more patients. Management Plan. Management Nakayama: I wantI to focus on our efforts formore direct Kitagawa: In thatrespect, was I ver ysatisfied withhow Based on current global In the case of a pharmaceutical a of case the In Last year’s CSR report was more to constantly monitor fairly long-term constantlyfairly long-term monitor to the entire world by ser ving health and medical though Ranbaxy. though continued our efforts,With eventually will we companyseenbe a as of your opinion on the theme of “Long-term “Long-term of theme the on opinion your the extent that it will no longer be appropriate appropriate be longer no will it extent that the touse the word“market,” a term which the burden of an aging population with slowing will change over thenext 50 years or so,it is focused on “Further Enhancing Corporate Enhancing “Further focused on Japaneseorigin whichis able tocontribute to Mission of apharmaceuticalMission company company, it isn’t enough to have a short or mid-term focus.Instead, itis important goal and also star ting objective for our Third action including autonomous, price-flexible autonomous, including action setting.In that respect, we have already equipped ourselves with technology for both both for technology with ourselves equipped pharmaceuticals. new and medicine generic of grantingof compulsorylicenses emerging in companiesdetermine to further course of spread. Under such conditions, health and and health conditions, such Under spread. critical a become will care medical to access to challenges, of variety a posing issue social support sustainable growth.” support sustainable growth. India, the African nations and other other Africanand the nations India, growth. emerging countries will disparity economic will and lead economy, global the growth of the clear that advanced nations will have to bear bear to have will advanced nations clear that differentiate. Actually, with increased instances instances increased with Actually, differentiate. Quality,”but this timeI would like tohear demographics, if we consider how the world world the how consider we if demographics, perspectives. Accordingly, investors should needs at the global level. This is our long-term reach and also has presence in India and Africa and India presence has in also reach and nations and healthcare reforms, such a trend trend a healthcare such reforms, and nations pharmaceutical forcing started, already has pharmaceutical to use companies to quick are perspective for the image as a respectedpharmaceutical companyinfrastructure and to Mid-term Business Management Plan. Management Business Mid-term Moreover, the Daiichi Sankyo Group has global global has SankyoGroup Daiichi the Moreover, Kitagawa: Nakayama: Kitagawa: value by staying value by ahead of the times. With a long-term perspective, we seek perspective, long-term Withwe a sustainable of improvement corporate Management Discussion
Responsible corporate activities be the overarching conduct code on shared items that support business based upon an assessment of how such rules are interpreted and applied within the operations of Kitagawa: Your company’s business has now a each country. much expended geographic reach also covering In other words, this code of conduct applies emerging markets with expected accelerated to both business activities for creating value growth in the future. Social structure across and responsible corporate activities based on all these regions is remarkably different. Due social responsibility. Both types of activities are to such factors, an extremely multifaceted increasingly essential for corporations. approach is necessary for sustainable growth. However, there is also an inextricable link Kitagawa: That’s wonderful. Discrepancy in between considering methods for shared global such situations poses great risks. In my opinion, thorough response must be taken as a kind of “self-defense.” However, all corporations are struggling with these issues, including the mega-firms of Europe and America. Still, your company is extremely proactive in its response—perhaps from about the time Ranbaxy was acquired. I truly respect what you have done.
Becoming No. 1
Nakayama: It is troublesome and costly to be bogged down with fixed goals. If things are stable, then it might be smart to form a strategy in which we rise to the second position and then overtake the leader right before the goal. However, in today’s world, winds of change blow from every direction. Therefore, business and responding to problems such as if you don’t acquire the ability to extract truth and human rights issues from a CSR perspective. analyze issues by yourself, you will ultimately end up in a most disadvantageous position. Nakayama: In terms of “shared global business,” At our company, I continue to emphasize the Daiichi Sank yo Group has adopted the Daiichi importance of becoming No. 1. This not just Sankyo Group Corporate Conduct Charter. This means to have the highest sales and income code requires all employees globally to conform figures, but rather becoming a company that is to a standard code of conduct, in addition certain first to take on the world’s problems and provide local codes of conduct are also implemented solutions, as well as becoming a company which on the basis of specific local business customs is imitated by others. I never want to hear any including laws and regulations. Therefore, we of our employees talk about following in the created our global code of business conduct to footsteps of some other company!
12 Daiichi Sankyo Group Value Report 2013 Management Discussion 13 That’s the true This is something on Within such discussions, discussions, such Within For example, example, For widening one’s scope and way thinking.of the which I constantly.focus I which effective significantly in current Mid-term Business Business Mid-term current at one-on-one meetings. meetings. one-on-one at opportunity to speak with with speak to opportunity discussions to formulate the the formulate to discussions CEOs of group companies group of CEOs new ideas and made made and ideas new cultural various from people backgrounds is extremely innumerable discoveries. diversity, of power isn’t it? in the U.S., Europe and India Management Plan. Management I have learned countless learned countless have I with discussion that feel I Kitagawa: I I frequently have the I have held many many held have I Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Exactly. If diversity proceeds proceeds diversity If Exactly. From the perspective of diversity diversity of perspective the From vibrant results.However, if a background then there will be only superficial diversity, superficial diversity, only be will there then organization. and company a of form friendly relationship will lead to loss of control two-tiered structure of passion and calmness. calmness. and passion of structure two-tiered smoothly, it creates a variety of positive and and positive of variety a creates it smoothly, established, simultaneously not is system and that doesn’t produce results. Today, and individual have gained through can we how priority give to I governance, and formal a hand, other the On mistakes. and constantly maintain trusting relationships and and relationships constantlytrusting maintain a having Simply organizational self-control. past experience. experience. past bureaucracy cause company crumble. our will to into wisdom forDaiichi Sank yo through the Nakayama: Nakayama: Perhaps our goal canbe described as a I have discussed my own past past experiences. own my discussed have I In the future, hopeI to convert my experience European corporations are often When faced with unpleasant Major companies in Europe and America and Europe Major in companies
tradition andprinciples which each company to change in environment. For example, some some example, For environment. in change to thoroughly assess the meaning and positive positive and meaning assess thoroughly the the problem. This is true for all things. Instead Instead things. all for true is This problem. the thinking has been firmly instilled from Changing diversity Changing abilityinto aspectsof taking action, possible. and as swiftly thenmove as corporations have placed an outside director in- director outside an placed corporations have corporations some diversity, and CSR of charge open to adopt changes to actively respond to changes adopt to open of taking a passive stance, it is important to to important is it stance, passive a taking of circumstances, definitely will you get better have their board of directorsparty. auditedHaving said by a that,thirdit is also true thatlevel the ofdiversity and governanceis based on results by taking the initiative and confronting confronting and initiative the taking by results past experience. past possess such perspective. Perhaps this way of of way this Perhaps perspective. such possess Kitagawa: Kitagawa: Management Discussion
Proper behavior as a company demands toward corporations change over the employee times. What kind of value should a corporation provide to society by contributing through Nakayama: Of course, I view the companies in business activities and by contributing directly the Group as partners. I dislike the terms “parent within a cer tain range of income? This question company” and “subsidiary”. We should focus contains a variety of elements. However, intensely and calmly on our respective abilities, the core of such contribution is to fulfill our how much we can contribute, and how we responsibilities/duties and to grow together with can work together for our common objective. society as an individual member of society, not We have established a close alliance with as a corporate machine. This is the essence of trustworthy and outstanding top executives in my philosophy. our offices throughout the world. In addition to such global head executives, our board of directors includes outside directors. Information disclosure and It is quite important to provide thorough answers communication to attract investors to the basic questions of outside directors. It is more important personally for me to be able Kitagawa: In so many different ways, I was to provide answers. I believe that governance ver y impressed by speaking with you today. I begins by treating such basic areas with believe that pharmaceutical companies must importance. be viewed with a long-term perspective. When business forecasts are made by investors with Kitagawa: Your way of thinking is simple and a long-term stance, they deeply consider the the essence of governance is well grounded in it. qualitative issue of what managers are thinking today. Investors are extremely interested in what Nakayama: In order for an individual to be action your company will take in order to achieve accepted as a member of society, it is necessary true globalization. In that respect, you revealed to duly fulfill duties to that society as a citizen a great amount of valuable and non-financial and to act correctly towards other individuals. information in our discussion today, and much of The same principle is true for corporations as that information is of great relevance to investors. well. From issues concerning the environment When a managing executive describes their to human rights and compliance, society’s vision for a company and expresses wishes for sympathetic individuals to become shareholders, such a message is not viewed as arrogance but as a display of conviction. Conveying such a message will attract investors who will coexist with your company in the long-term.
Nakayama: Thank you very much. I also believe that such a perspective is important. In particular, long-term development is an essential part of pharmaceutical companies and it is important that we obtain understanding from investors. Therefore, we
14 Daiichi Sankyo Group Value Report 2013 Management Discussion 15 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Actually, this matter Actually, this complete of disclosure
fellow human being, we must show our entire entire our show must we being, human fellow for your time today. character and personality.character and no I if as feel I information, of portion a only challenges to gain the support of you, Professor you, support of the gain to challenges has always been on my mind. When discussing discussing When mind. my on always been has longerunderstand whatam I tr ying toconvey. integrating annualour report report. CSR and For that reason, we have taken the challenge of of challenge the taken have we reason, that For Kitagawa, and investors. Thank you very much very much you Thank investors. and Kitagawa, In the future, weshall continue toembrace The perspective of investors has In thatrespect, it is best to have The best best scenario for The Through today’s discussion, I have learned learned have I discussion, today’s Through
valuable products, contribute contribute products, valuable the whole. When it comes to disclosure with a a with disclosure to comes it When whole. the that we can become one with many different many with one become can we that the essence is contained in in contained essence is the thiscycle, which we willuse as to society,and bring successto investors. Although several wisely forR&D, make a profit takes initiative the honoring matter in this and we must not communicate must not we only using certain that your company has firm corporate principles, corporateprinciples, firm has company your that which must be universally have also protectedI realized term. that yourMid-term in the long- all of our stakeholdersis a aspect while conveying our our conveying aspect while segments of information that have been cut from from cut been have that information of segments stakeholders by clearly conveying this hope and and hope stakeholders clearly by this conveying a basis for our business activities.Not just the cycle, in which we use money and documented. An ideal integrated repor t our company share this feeling. In my opinion, the the opinion, my In feeling. this share company our to hope long-term earnest, an have companies an utilize to very important is it so opportunity, one-on-one meetings with long-term investors. investors. long-term with meetings one-on-one discussion today. discussion considers the reader and ensures that the the that ensures readerand the considers different theories are involved, different involved, theories are desire in our message. our in desire message. I reaffirmed I message. the importance our during of this mustbe aware of this essential management executives, but all employees in in employees all but management executives, majority pharmaceutical at working people of beof use topatients throughout the world. feelI byproviding the world with responds actively. responds reader respectsatisfied. is I how your company based on those principles. Therefore, multifaceted. increasingly become integrated report. Nakayama: However, not all investors have such an Business Management Plan was formulated was formulated Plan Management Business Kitagawa: I feelI that thisprocess waslogically constructed Third Mid-term Business Management Plan (5 Years Business Plan)
Over the medium- and long-term, the Daiichi Sankyo Group aims to address diverse medical needs worldwide and strive to be a “Global Pharma Innovator” capable of sustainable growth.
Our First Mid-term Plan (F Y2007-2009), af ter the proved challenging in terms of profitability. This establishment of Daiichi Sankyo, was focused remains a key managerial issue going forward to on maximizing synergies from integration and achieve sustainable growth. accelerating global expansion. At the same The next several decades will likely see time, with the acquisition of Ranbaxy and other increased prominence for health and medical moves, the Group laid the groundwork for long- issues throughout the world. Given these trends, term growth. aspiring to be a global solution provider that has a The Second Mid-term Plan (F Y2010-2012) good understanding of society’s needs, the Daiichi sought to attain more rapid growth in developing Sankyo Group laid out its Third Mid-term Business countries like India and China, while maintaining Management Plan (F Y2013-2017) in March this year. growth in developed countries. The Group This plan is a cornerstone of our efforts to began developing a sustainable hybrid business become a Global Pharma Innovator capable of model through its foray into vaccines and the sustainable growth while addressing diverse generic business in Japan. This period also saw medical needs throughout the world. The first year the conclusion of clinical trials for Edoxaban, of the plan is particularly important, so in fiscal our next-generation anticoagulant drug, which 2013 we will continue making certain steps towards reached the new drug application (NDA) stage, increasing both sales and income while realizing first in Japan. Although we saw success in laying sales of at least one trillion yen and bolstering the groundwork for future growth, this period market competitiveness.
● General Objectives ● Numerical Targets
Net Sales Operating Income Overcome Olmesartan LOE (loss of exclusivity) (JPY Bn) 200 (JPY Bn) Set Course for Further Growth 1,5 0 0 200
● Achieve sustainable revenue growth and 1,300 improve profitability 1,080 150 Revenue CAGR (FY2012 to FY2017) Over 5% 997.9 1,0 0 0
FY2017 operating income margin O v e r 15% 110 100 ROE 10% or over 100.5
EPS 150 yen or over 500 50 Stable dividends and flexible shareholder returns
● Transform into a hybrid business powerhouse 0 0 FY2012 FY2013 FY2017 Strengthen business in key markets Results Forecast Target (Japan, India, and U.S.) and emerging markets
Flexible corporate structure to navigate through changing business environment
16 Daiichi Sankyo Group Value Report 2013 Third Mid-term Business Management Plan 17 2 ) * 3 SUN13837 CS-0777 U3 -1287 U 3 -15 6 5 DS-8587 PLX5622 DS-7250 DS-6930 D S -14 4 2 DS-7423 DS-3078 〜 (As of March, 2013) March, of (As (LCM) F Y2 018 ASB17061 Vemurafenib (LCM* Vemurafenib Oncology CV-M(CVM) CS-4771 C S -10 0 8 C S -7 017 C S - 315 0 DS-5565 DS-7113 Denosumab PLX3397 DS-2248 DE-766 DS-7309 DS-8500 (LCM) Prasugrel (LCM) Edoxaban Frontier 1 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi RA HCC BC adj. DPNP* DS-5565 F Y 2 0 17 Tivantinib Lymphoma Denosumab Denosumab Rituximab BS Rituximab RA CVA F Y2 016 Prasugrel Edoxaban Etanercept BS Etanercept The Japanesemarket serves as a key growth driver The Third Mid-term Business Management Plan Plan Management Business Mid-term The Third We willstrive tobecome the topplayer in the Tivantinib, U3-1287, and PL X-3397.
Japanese domestic pharmaceutical market by pharmaceutical by Japanese market domestic a strong entry into biologics, with the launch of multiple multiple of launch the with biologics, entry strong into a sales of high potential drugs like Memary, Nexium, potentialsalesMemary,Nexium, high drugsof like concept late-stage clinical development projects, and development projects, and late-stageconcept clinical drugs by enhancing our R&D pipeline. particularOf pipeline. R&D our enhancing by drugs biosimilar drugs. biosimilar product lineup. We will also be striving towards making making towards striving be also will We lineup. product maximizing valuethe Olmesartan, of actively expanding in the Third Mid-term Business Management Plan. Plan. Management Business Mid-term Third the in nine Phase 1 trials. 1 Phase nine incorporates clear goals and benchmarks for R&D R&D benchmarks for and incorporates goals clear more benchmarks or two are Annual management. of post-proof four major indications, launches for neuropathic pain and cancer-related projects such as importance are DS-5565 for diabetic peripheral peripheral diabetic for DS-5565 are importance Ranmark, and Pralia. Launches of Prasugrel and and Prasugrel Launches of Pralia. and Ranmark, Edoxabanin FY2014 and onwards will furtherbolster our AF & V TE (China · LTAM etc.) VTE F Y 2 015 Indication Additional Additional Edoxaban Levofloxacin Inj. Levofloxacin AF AF AF VTE VTE CAD F Y 2 0 14 Prasugrel Edoxaban Edoxaban Edoxaban Edoxaban Edoxaban F Y 2 013 Prasugrel Laninamivir CAD (China) CAD Denosumab Prophylactic Osteoporosis We will continue our efforts toincrease Of course, we are also workinghard on Edoxaban is scheduled for launch in many U.S. Projects to be Approved/Launched be to Projects Japan Europe
Core Strategy 1 : 1 Strategy Core Others Western Western
While the competitive While the environment surrounding our for its for its approved indication reducingof thrombotic that its benefits may allow Edoxaban to become a become a Edoxaban to benefitsallow may its that thisinto aglobal blockbuster thatcan serve as a cardiovascular events in acute coronary acute syndrome cardiovascularin events anchor product Olmesartan highly is volatile, we will maximize profitability strivesales and to focusing by countries during fiscal 2014 and beyond. We hope our efforts on new combination therapies with this this therapies with efforts combination new our on Enhance innovative productEnhance innovative portfolio andR&D pipeline (ACS) patients undergoing percutaneous coronary undergoing patients (ACS) best-in-class therapy,and weintend to transform discovery. drug next-generation innovative of pillar intervention (PCI). The drug is also scheduled for for scheduled also is drug The (PCI). intervention launch in Japan in fiscal 2014, and product. major we become a expect it to product. prescriptions Europe and for Prasugrel U.S. the in innovating next new generation potential blockbuster potential generation next new innovating *1 Diabetic Peripheral Neuropathic Pain Neuropathic Peripheral Diabetic *1 approved/launchedFY2018 before be projects to Includes *2 indication. adding as such ways by value product’s maximize To *3 ● Third Mid-term Business Management Plan
Core Strategy 2 : Develop competitive businesses to address diverse local needs
The U.S. and Japan are the largest pharmaceutical In the over-the-counter (OTC) drug sector, we will markets in the world, but medical needs in these expand sales and improve our income structure countries are becoming ever more diverse. through product prioritization and focused In the U.S., our group company Daiichi Sankyo, approach. Inc. will be maximizing sales of Olmesar tan and In India, we will take advantage of Prasugrel. Luitpold Pharmaceuticals will be Ranbaxy’s brand status as the country’s leading launching Injectafer for anemia, while Ranbaxy pharmaceutical company to continue business will be further pursuing its first-to-file (FTF ) development and achieve growth surpassing launches and expanding business opportunities India’s overall pharmaceutical market. in high value-added fields such as dermatology. Finally, in developing countries in Eastern By leveraging the unique strengths of these three Europe and Africa, Ranbaxy will be able to pursue group companies, the Daiichi Sankyo Group will growth itself and also leverage its network for boost profitability and respond to a diverse array Daiichi Sankyo innovative products such as of medical needs going forward. Olmesar tan and Edoxaban. We will also be able In Japan, while pursuing continued growth to utilize Daiichi Sank yo’s networks in developed through innovative new drugs, we will also countries, Asia, and Latin America to sell Ranbaxy strengthen foundations of Daiichi Sankyo Espha high quality and value added generic products. to expand and boost profitability in the generic In this way, leveraging alliances will enable us to business. We will also strive to establish our improve competitiveness in the global marketplace position as a Japan’s leading vaccine company. as we expand our global reach.
● Steady Growth in Developed Markets, Substantial Growth in Emerging Markets
Western Europe Eastern Europe JPY 90 Bn JPY 50 Bn 3% 20% China U.S. JPY 40 Bn Japan JPY 290 Bn 20% 2% JPY 630 Bn India 4% JPY 100 Bn Africa 16% JPY 40 Bn 23% Latin America JPY 40 Bn 16%
FY2017 Sales Target
FY2012 ⇒ FY2017 Sales Growth CAGR
18 Daiichi Sankyo Group Value Report 2013 Third Mid-term Business Management Plan 19 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi These steps improve allow will to us our We will use all methods use all will We available Core Strategy 3 : 3 Strategy Core
various regions throughout the world. We We world. the throughout regions various Transition to a low-cost Transition to creating value. Our goalis toreduce selling to streamlineto operations minimize and will also establish an optimal global supply operating framework and general administrative expenses as a a as expenses administrative general and enhance competitiveness sustainability. and operating currently income margin, at about chain, capablechain, continually of lowering costs, adapting to local environmental changes in our objective of becoming a Global Pharma Pharma Global a objectivebecoming of our Going for ward, we will transformour entire policy will receive support from the entire entire the receive support from will policy proportion of total sales by at least 10 points by by points 10 least at by sales proportion total of management and workflows related management and directly not utilizing synergies with Ranbaxymanufacturing processes. for cer tain management structure into one capable of of capable one into structure management Daiichi Sank yoGroup going for wardin order to FY2017 (over FY2012 baseline). Improving profitability reach essentialImproving to is growth. sustainable of capable Innovator, 10%, to 15% or higher to15% 10%, This byFY2017. priority Marketing & Sales “To contribute to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs.” With this mission, Daiichi Sankyo Group operates in more than 50 countries.
Key Products Strategy
We have started its Third Mid-term Business Management Plan (FY2013-2017) aiming to establish itself as a“Global Pharma Innovator”capable of sustainable growth, while addressing diverse medical needs throughout the world. In fiscal 2007, when the Company started its combined business after merger of Daiichi Pharmaceutical Company and Sankyo Company Limited, a major challenge was to overcome patent cliff of its key products antihyperlipidemic agent pravastatin and the synthetic antibacterial agent levofloxacin, which the company successfully overcome by its blockbuster, antihypertensive agent olmesartan. Now that olmesartan will be approaching maturity phase after growing throughout First & Second Mid-term Business Management Plans period (FY2007-2012), a major business challenge in the Third Mid-term Business Management Plan is going to be how smoothly we can offset olmesartan patent cliff by generating significant revenue from the next-generation antiplatelet agent, prasugrel, and anticoagulant drug, edoxaban , for sustainable growth.
● Olmesartan to increase market share of olmesartan by In the Western markets, we are pursuing lifecycle continually expanding our business in China management strategies focusing on a shift to following the successful launch of Sevikar. combination products business. Especially In Japan, we are endeavoring to attract our in Europe, we are accelerating switchover to potential customers’ attention to olmesartan’s Sevikar and Sevikar HCT which not just provide well-established ef ficacy in the ARB class and significant patient benefits but also have it’s favorable safety profile. We are also going to extended market life and revenue opportunity. emphasize olmesartan’s wide dosage range from There is still considerable room for growth low content of 5 mg to high content of 40 mg. in emerging markets. We are making attempts
● Sales of Olmesartan (Local Currency Basis)
1,200 U.S. (USD Mn)
1,000 Japan (JPY Bn) 800
600
EU (EUR Mn) 400
200 ASCA*1 etc. (JPY Bn)
0 FY2009 FY2010 FY2011 FY2012 FY2013 Results Result Result Result Plan
FY2009 Result FY2010 Result FY2011 Result FY2012 Result FY2013 Plan Japan (JPY Bn) 772 870 944 952 1,050 U.S. (USD Mn) 1,095 1,102 1,112 1,142 905 EU (EUR Mn) 353 408 468 448 448 ASCA etc. (JPY Bn) 131 139 165 207 240 Breakdown for Olmesartan Japan: Olmetec, Rezaltas U.S.: Benicar, Benicar HCT, Azor, Tribenzor Europe: Olmetec, Olmetec Plus, Sevikar, Sevikar HCT
*1 Abbreviation of Asia, South and Central America. This is internal terminology indicating markets outside Japan, the United States and Europe.
20 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 21 FY2020 Prasugrel Edoxaban Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi FY2017 The group will also consider option to to option consider also will group The Regarding indication the for prevention the Inaddition, withregard to V TE, weare Edoxaban
America in fiscal 2015 or later. or 2015 fiscal in America
the ENGAGE-AF TIMI 48 trial acquireENGAGE-AF 48 aimed the to TIMI Ranbaxy.through with excellent efficacy and a safety profile that that profile safety a and efficacy excellent with acquire regulatory acquire indication approvals for the stroke/systemic of prevention the for approval and launch by fiscal in2014 Japan,U.S. and and byEU, fiscal 2015 or later in Asia and aiming to get approval and launch in Japan, global Phase III trials: Hokusai VTE trial aimed to to aimed VTE trial Hokusai trials: III Phase global (VTE), and thrombosis venous of prevention of (AF). with patients (SEE)among events embolic (SEE)among events embolic stroke/systemic of develop edoxaban business emerging market in ● requires only one dose a day, and is already already is and day, a dose one only requires two conducted have We Japan. in marketed approval get to aiming are we (AF), with patients U.S. andEU in fiscal and2014, in Asia andLatin Edoxaban is an oral Factor Xa anticoagulant anticoagulant Xa Factor oral an is Edoxaban Latin America.
1 Olmesartan FY2012
loxacin f o Lev Pravastatin 0 FY2007 Also, we are going to actively expand expand actively to going are we Also, 1,500 3,000 4,500 Basedon thesedata, weapplied for In the global market, we are focusing more Cases) ( Prasugrel Sustainable Grow th with Smooth Transition of Key Drivers
Approval in China is expected by the end of ● We have conducted two Phase III trials of of trials III Phase two conducted have We We expect prasugrel to become a standard
therapeutic drug for the treatment of ischemic ischemic of treatment the for drug therapeutic f is c a l 2013. treatment guidelines of U.S. (AHA/ACCF/SCAI) U.S. of guidelines treatment *1 Patients with acute coronary syndrome (ACS) undergoing percutaneous coronary coronary acute (ACS)undergoing (PCI). intervention syndrome with Patients *1 approval for an indication in the cardiac area and EU (ESC). area continuously based on the fact that we we fact that the on based continuously area our prasugrel business in emerging markets. markets. emerging in business prasugrel our of recurrence and aim to build growth in this completed in fiscal 2014. ● prasugrel in Japan, for treatments of ACS-PCI* Japan, prasugrel in result in ef ficacy and the safety, comparedratio controlin group. the same to level of bleeding heart disease Japan. undergoing in PCI patients elective-PCI and patients. have obtained “class 1b” recommendation in the the in recommendation 1b” “class obtained have in June Phase 2013. III trial for ischemic strokepatients is currently ongoing and expected tobe intensively on ACS-PCI patients with high risk risk high with patients ACS-PCI on intensively Both trials in prasugrel group showed positive Marketing & Sales
Regional Strategy
We are currently pursuing marketing activities to address diverse medical needs in each region in an effort to achieve the target of the Third Mid-term Business Management Plan, i.e., “global sales of 1.3 trillion yen in fiscal 2017”. With our steady growth in the developed markets including the U.S., EU and Japan as a foundation, we are aiming to realize the sustainable and substantial growth in the emerging markets in India, China, Eastern Europe, the CIS countries and Africa over next 5 years.
The U.S. by utilizing the new factory of former Pharma-Force that the company has acquired. In the U.S., we are engaged in three lines of Ranbaxy is aiming to launch DS’s authorized business operations, i.e. Daiichi Sank yo, Inc. generics*1 in the future in addition to the (DSI), Luitpold Pharmaceuticals, Inc. (LPI) and successful launch of F TF*2 products. Ranbaxy Ranbaxy Laboratories Limited. To address is also focusing on expansion of its branded diverse market needs, we are aiming to grow business in dermatology. Products such as through independent and flexible operations by Absorica, which was launched at the end of making the most of the strengths of each line of 2012, are expected to become key drivers in our operations in the U.S. operation in the U.S. in the future. Since the exclusive marketing rights of Welchol and Benicar expire in fiscal 2014 and Western Europe 2016 respectively, DSI will seek to offset the effect of LOE (Loss of Exclusivity) with prasugrel Daiichi Sankyo Europe plans to improve the value and edoxaban, as well as through complementary of branded products as well as to maintain sales acquisitions or partnerships to boost sales and profits by fur ther shif ting the promotion of per formance. olmesartan to combination products. LPI is aiming to maintain its leadership Regarding prasugrel, the company is promoting use in the injectable iron segment by launching of the product in patients with high-risk ACS-PCI*3. Injectafer in fiscal 2013, the next generation On the other hand, being in the highly product to succeed Venofer. With entry into the competitive market environment, the company gynecological medicine market within its sight, has already started business productivity LPI is attempting to further develop its business improvements including organizational in the U.S. iron preparation market where it restructuring, and is aiming to transform itself to has already secured the top share. LPI is also a more resilient organization that is capable of pursuing expansion of its multisource business sustainable growth.
Greg Barrett Mary Jane Helenek Jan Van Ruymbeke Daiichi Sank yo, Inc. Luitpold Pharmaceuticals, Inc. Daiichi Sankyo Europe GmbH Head of the Commercial Division President & CEO Managing Director & CEO
*1 The generic medicine which is entitled to use the patents and made using the completely same ingredients and manufacturing method with the original medicine. *2 An abbreviated name for First to File. The U.S. system to ensure 180-day market exclusivity for the first company which files a patent application for generic drugs. *3 Patients with acute coronary syndrome (ACS) undergoing percutaneous coronary intervention (PCI). 22 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 23 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi (Application Integrity importPolicy) and alert 1 At thesame time, we willexpand Ranbaxy’s We are exploring cost reductions by sharing sharing by reductions cost exploring are We Furthermore, we are aiming to develop develop to aiming are we Furthermore, During the Third Mid-term Business Business Mid-term Third the During In addition, we will implement Consent Consent implement will we addition, In Africa, we arepromoting acquisition of external the resolve to 2011, December in Administration) AIP*
the foundations to establish organizational establish to foundations the throughDaiichi Sank yo’s network in Japan as well on cer tain manufacturing facilities inIndia. Daiichi structure support to growth strategy. Sankyo is appropriatelySankyo quality is overseeing of the market. global as innovative Sankyo’s Daiichi genericsauthorized of Sankyo Group., Daiichi Sankyo group’s innovative Daiichi Sankyo Sankyo group’s Group., differentiated and products products generic Exclusivity).of drugs such as olmesartan and others are going to to going are others olmesartan as and such drugs network. Regarding the business development development business the Regarding network. in the emerging countries in Eastern Europe and business foundation resources strengthening while regions. the in par t ofDS’s olmesar tan and Ranbaxy. edoxabanwith processes production by Ranbaxy ever since they joined the Daiichi Daiichi Ranbaxy by the they joined ever since promotedemergingbe the in countriesRanbaxy. by (Loss LOE of expiration after right the drugs medical “hybrid business model”, which has been promoted Decree agreed by the U.S. FDA (Food and Drug Ranbaxy’s products. We will continue to strengthen Ranbaxy’scontinue to will products. We Management Plan, we are further evolving the the furtherevolving are we Plan, Management Arun Sawhney CEO ManagingCEO & Director Ranbaxy Laboratories Ltd.
We are aiming to grow further areto aiming We leading a as of development on focusing are We We are also aggressively working on on working aggressively also are We In such anenvironment, we are first aiming Administration (FDA) when questions arise concerning the integrity and reliability of data submitted in its drug applications. drug its in submitted data of reliability integrity and the concerning arise questions when (FDA) Administration
withRanbaxy andutilization and acquisition to launch new products such as prasugrel and and prasugrel as such products new launch to *1 An abbreviated name for Application Integrity Policy. An AIP is invoked against a facility by the U.S. Food and Drug Drug and Food U.S. the facilityby a against invoked is AIP An Integrity abbreviated Policy. Application for An name *1 sustainable growth. growth. sustainable systems, use medicines,of and differentiated market the for suitable tactics strategiesand sustainable growth by promoting its products with with products its promoting by growth sustainable of external resources to achieve rapid growth characteristics of each country is essential for for essential is country each of characteristics company in India by by furthercompanyIndia in leveraging competitivedifferentiated and products and edoxaban, in China, while furtherChina, edoxaban,in expanding our olmesartan business. of ASCA Company ASCA of during theimplementation of the ThirdMid-term demographics, economic growth, economic economic growth, economic demographics, distribution systems, insurance medical disparity, Group’s hybrid business model. We are striving for striving for are We model. business hybrid Group’s Shuji Handa high quality and profitability in the global market. market them through Ranbaxy’s global sales sales global Ranbaxy’s through them market promotion of the hybrid business in collaboration collaboration in business hybrid the of promotion regions, due to the diversity the to terms of due regions, in Ranbaxy’s brand. Business Management Plan. Management Business Ranbaxykey component a Daiichi Sankyo of is In the ASCA (Asia, South and Central America)Central and South (Asia, ASCA the In Executive Officer, President Ltd. Co., Sankyo Daiichi (Ranbaxy) (ASCA) Emerging Countries Marketing and Sales
Japan Innovative Pharmaceutical Business
We contribute to medicine in Japan by providing a reliable source of information and the pharmaceuticals that Japanese patients need on a daily basis.
The products launched during Daiichi Sankyo’s Second Mid-term Business Management Plan (F Y2010-2012) period are all pharmaceutical products that will become even more important as the population of Japan continues to age. These products include Rezaltas, an antihypertensive; Memary, a treatment for Alzheimer’s disease; and Nexium, a proton pump inhibitor for treating reflux esophagitis and other problems. The product lineup will be enhanced even further as part of the Third Mid-term Business Management Plan. PRALIA, a new treatment for osteoporosis, was launched in June 2013. In fiscal 2014 new indications are planned for Lixiana (edoxaban), a direct oral factor Xa inhibitor, and in the same year we plan to launch Prasugrel, an antiplatelet agent. Both products have the potential to aim for positions in Japan as standard treatments for thrombosis and embolism. For diabetes drugs, in addition to Tenelia which is manufactured by Mitsubishi Tanabe Pharma Corporation and was launched in fiscal 2012, we also plan to jointly market Canagliflozin, which was submitted for marketing approval by MT Pharma in May 2013. The power of reflecting the strength of product lineup surely in the acquisition of prescriptions - the massive volume of details*1 gathered by 2,300 MR*2 and the high quality of information are the unique features of Daiichi Sankyo. Ryoichi Kibushi Af ter going through the integration period of Senior Executive Officer the First Mid-term Business Management Plan Head of Sales & Marketing Division, Japan Company Daiichi Sankyo Co., Ltd. and then building a strong base for rapid progress with the Second Mid-term Business Management Plan, Daiichi Sankyo’s Japanese Sales & Marketing Division has built up trust from those in the medical field. By using this business base we have built so far and carr ying out the Third Mid-term Business Management Plan with speed and passion, we will contribute to both medical advancement in Japan and growth of the Daiichi Sank yo Group. Although the growth rate of the Japanese prescription drug market has been slowing, it is
*1 Provision and collection of medical information *2 A medical representative (MR) is primarily responsible for visiting medical professionals to compile and provide information on the safe and effective use of pharmaceutical products in order to ensure that the products are used appropriately.
24 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 25 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Sales of prescription drugs for fiscal in2012 Olmesartan Family (Antihypertensive) Family Olmesartan Nexium (Proton Pump Inhibitor) Pump (Proton Nexium Memary (NMDA ReceptorMemary Antagonist (NMDA
Achieving status as No.1 new prescription once the the once prescription new No.1 as status Achieving year-over-year to ¥459.9 billion. Trends and future future and Trends billion. ¥459.9 to year-over-year We are attempting topenetrate the Japanesemarket
Treatment for Alzheimer’s Disease) Alzheimer’s for Treatment We have Calblock, a long-acting calcium channel channel calcium long-acting a Calblock, have We together with AstraZeneca K.K and recognized Japan. market in inhibitor pump proton the with Memary as a new treatment for Alzheimer’s Alzheimer’s treatment for new Memary a as with where it can aim for the top share of the ARB mono mono ARB the of share top the for aim can it where are we 2013 fiscal In Japan. in market therapy Olmetec that so information providing on focusing family,and willpropose themas treatments thatcan will be prescribed to a wider range of patients. Japan included the increasedMemary sales of the included Japan strategies for major products are given below. as being very effective at regulating gastric acid acid gastric regulating at effective very being as secretion, our goalis toquickly gain the top sharein and Nexium, with the aggressive the with Nexium, promotions and Olmetec is widely recognized for its strong efficacy strong its for recognized widely is Olmetec described as above after theremoval of the disease. We promote proper use so that dementia dementia that so use proper promote We disease. dosage period restriction was lifted, shares of sales Sankyo Japanese Sales & Marketing Division has has Division Sankyo Marketing Japanese & Sales ● ● ● haveincreased rapidly. With joint promotion ofNexium patients and their families comprehensive including approach part a of as life, can enjoypeaceful daily patient education with the goal ofprescribing limitation on dosage period, for a 9.6% increase 9.6% a for period, dosage on limitation in reducing blood pressure putting it in a position blocker with hopes for its cardioprotective and and cardioprotective its for hopes with blocker renoprotective effects,Rezaltas, and combination Daiichi The Calblock. and Olmetec of products olmesartan the as products three these positioned varietydifferent a of of needs conditions. the meet Memary and Donepezil jointly to new patients. new to Donepezil jointly Memary and , , which combines medical 1 The circumstances surrounding the medicines medicines the circumstances surrounding The In particular, with the aging population, population, aging the with particular, In specific medical and therapeutic fields, ensuring the provision of high-quality information. high-quality of provision the ensuring therapeutic fields, and specificmedical
vaccines. On the other hand, the promotion for for promotion the hand, other the On vaccines.
for a long time, by utilizing almost100% (based thePromotion Code are examples ofhow the use of generic medicines will be enhanced enhanced be will medicines generic of use the wewill start approaches via variouschannels trillion yen. the overall needs in medical facilities, with highly *1 A structure that links MRs who call on certain medical facilities and regional areas with MRs supplying specialized data in in data specialized supplying MRs with areas regional and facilities medical certain on call who MRs links that structure A *1 advertising enlightening and diseases online, in sales channels of medical and pharmaceutical and medical of sales channels such as promoting new products and those listed accordance with the medical needs which have have needs which medical accordancethe with such Renin-Angiotensinsuch as type hypertension, order to perform efficientorder to services information reliablethis growth partner. do a being We by on the amount) distribution coverage of Japan's Japan's coverage of distribution amount) the on changes of circumstances, and in increasing the increasing the in and circumstances, changes of conditions for marketing activities have of Transparency Guidelines and tightening of tightening and Transparency Guidelines of growth, and Japan’s preventive healthJapan’s growth, and care still expected toreach an annual value of 10 specialized MRs assigned to specific therapeutic to assigned MRs specialized companies. Group with collaborating and areas, Crosswise Structure* death, anticancer drugs are seeing significant seeing are anticancerdrugs death, (Multi-Channel Approach). We aim for sustainable for aim We Approach). (Multi-Channel by continuingDaiichi by Sankyo’s originalMR beendiversified. In flexiblyresponding to the focus, to need we which on products of number have been changed from moment to moment in in moment to moment from changed been have become stricter. national income. In addition, the introduction introduction the addition, In income. national upon the fact that the national medical expense medical national the fact that the upon policies have also contributed to growth for growth for to contributed also have policies products, building the relationships with health health with relationships the building products, lectures, hosting pharmacies, insurance isincreasing in excess of the growth of the lipids and diabetesand lipids major continuea be will to market. With cancer still theleading cause of prescription drugs for lifestyle-related for drugs diseases prescription representatives (MRs) responsible for meeting meeting for responsible (MRs) representatives Marketing and Sales
Japan Generic Business
We will bring about a new standard of generic drugs utilizing the quality and innovation that are unique to Daiichi Sankyo brands.
The government has reinforced the promotion of the use of generic drugs in order to inhibit the increase of the medical costs with Japan’s rapidly aging society. In April 2013, the Ministr y of Health, Labor and Welfare announced a generic usage promotion plan to raise the existing target level and aim for the volume-based penetration rate of 60% or over by the end of fiscal 2017 based on the new calculation system. Under the circumstances, Daiichi Sankyo Espha steadily increased the line of generic drugs and the sales in fiscal 2012 reached 10.9 billion yen, a 20.3% increase compared to the previous year (prior to consolidated adjustment). Based on the trust that the Daiichi Sankyo Group has established as a brand-name drug manufacturer, Daiichi Sank yo Espha has been creating and providing high value-added generic drugs with an aim to become the first choice of patients who need generic drugs. Particularly on “quality” aspects, we used techniques such as laser printing of the name of the drug/company on both sides of the tablet and printing a barcode on the back of the PTP sheet of each tablet in order to make it easy to take and to avoid misuse of our medications. We are committed to setting new standards for generic drugs and meeting unmet needs by enhancing the value of generic, which will help us meet the expectations of the society and offer more options for the Japanese healthcare system. In fiscal 2013, one of our key strategies is to seek Hiroto Yoshiwaka a larger market share of the generic drug Donepezil Representative Director, President that was put on the market in fiscal 2011. Since January Daiichi Sankyo Espha Co., Ltd. 2013, we have strengthened the sales cooperation with the Sales & Marketing Division of Daiichi Sankyo that owns the treatment of Alzheimer's disease Memary that can be taken in combination with Donepezil. We will contribute to establishing the Daiichi Sankyo brand in the area of AD (Alzheimer’s disease). In addition to this, we will strive to strengthen the relationships with health insurance pharmacies and wholesalers to ensure the top share of two items in generic ARB drugs which will become off-patent in 2014. We will also try to secure the No.1 domestic share of the product that would become the first drug developed jointly with Ranbaxy and thus create synergies for the Daiichi Sankyo Group. 26 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 27 at anearly point. *3 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi and Japan Vaccine specializedin *1 af filiation in Japan, Kitasato Daiichi *2 Daiichi Sankyo is engaged in research, early-phase early-phase research, in engaged is Sankyo Daiichi Join national plan for human influenza pandemic influenza human for plan national Join Establish Daiichi Sankyo as a leading vaccine company vaccine leading a Sankyo as Daiichi Establish Enhance the manufacturing/CMC the structuresEnhance
Through "The project maintenance for new influenza vaccine influenza vaccine new projectfor maintenance "The Through Vaccine) as a joint company with GlaxoSmithKline K.K. GlaxoSmithKline K.K. with company joint a as Vaccine) To combat potential pandemic threats, Daiichi Sankyo Sankyo Daiichi threats, pandemic potential combat To A movement to foster the increased use and access access and use increased the foster to movement A Vaccination Act enforcedin April2013, 3 vaccines vaccine by leveraging our device technology. For For technology. device our leveraging by vaccine and improve manufacturingefficiency improve and further expanded since then. since expanded further for haemophilus influenza type b (Hib), pediatric pediatric (Hib), b type influenza haemophilus for patients, of needs medical important serve to vaccines with Kitasato Daiichi Sankyo Vaccine Co., Ltd. specialized specialized Ltd. Co., Vaccine Sankyo Daiichi Kitasato with through working withPIC/S GMP adding GSK vaccines. GSK adding time of the occurrence/prevalence for a new strain of influenza. of strain new a for occurrence/prevalence the of time strategy for the Third Mid-term Business Management Management Business Mid-term Third the for strategy of vaccines is currently growing in terms of preventive preventive of terms in currently growing vaccines is of Preventive amended the of result a As Japan. in care In vaccines. for distribution and development, clinical of creation the pursues also company the addition, relationship its through supply stable their ensures and distribution, we will enhance our product line-up by by line-up product our enhance will we distribution, distribution and late-phase clinical development. The basic basic The development. clinical late-phase and distribution (GSK) in July 2012 and the vaccine business has been been has business vaccine the and 2012 July in (GSK) initiated operations of Japan Vaccine Co., Ltd. (Japan (Japan Ltd. Co., Vaccine Japan of operations initiated pneumococcus and cervical cancer were added to the the to added were cancer cervical and pneumococcus list ofroutine immunization as essentially free of charge. new concepts such as an intradermal administration administration intradermal an as such concepts new in production/CMC in Plan (FY2013-2017) is described as below. as described is (FY2013-2017) Plan In addition to combination vaccines, we will develop develop will we vaccines, combination to addition In standard quality and enhance production efficiencyproduction enhance standardquality and Sankyo Vaccine will proceed to secure the global global the secure to proceed will Vaccine Sankyo development/production system" by the Ministry of Health, Health, Ministry of the by development/production system" the at system supply rapid development/production a and system ● ● ● Labour and Welfare, we will proceed to secure a vaccine vaccine a secure to proceed will we Welfare, and Labour Prior to PIC/S to Prior Vaccine
framework for interauthority cooperation in the field of medicinal products. EU, the U.S. FDA, and many other countries have joined it. joined have countries other many and FDA, U.S. the EU, products. medicinal of framework field interauthority for the cooperation in drug substances and drugproducts in application documents. *3 PIC/S GMP is GMP (Good Manufacturing Practice) that PIC/S establishes. PIC/S that Practice) Manufacturing (Good GMP is GMP PIC/S *3 *2 PIC/S stands for Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme. It is an unofficial an is It Co-operation Pharmaceutical Inspection Scheme. and Convention Pharmaceuticalstands Inspection for PIC/S *2 *1 CMC stands for Chemistry, Manufacturing and Control. It means any information concerning chemistry, manufacturing and control of control and manufacturing chemistry, concerning information any means It Control. and Manufacturing Chemistry, stands for CMC *1 Takeshi Ogita Ph.D.
We make a contribution to improve public health and medical medical health and public improve contribution to make a We Japan Japan Company Japan economic efficiencyeconomic infectious preventing diseases and while childlife-threatening diseases. Daiichi Sankyo Co., Ltd. Sankyo Co., Daiichi Head of Vaccine Business Intelligence Division, Head of Division, Vaccine BusinessIntelligence Member of the Board, Senior Executive Executive Officer Senior Board, of Member the Marketing and Sales
Japan OTC Business
To respond to various patient needs, our OTC products help to promote beauty and health.
In order to maintain and enhance the public health, OTC drugs*1 with new functions and switch-OTC drugs with conver ted medical compositions have been increased in Japan. On the other hand, the competitions are becoming severe because of diversified distribution channels in the market. In 2012, the Japan OTC drug market was 97.8% (based on store sales) of the previous year. In an intensely diverse market in 2012, Daiichi Sankyo Healthcare had a 2.8% increase in sales compared to the previous fiscal year which comes to a total of 47.1 billion yen. This growth was due to the sales expansion of antipyretic- analgesic Loxonin S and the growth of the functional skincare/oral care category. During the Third Mid-term Business Management Plan, the Company will focus on the following fundamental strategy to meet the various needs of people.
● Increase sales by focusing on selected brand and improve P&L structure While enhancing sales by concentrating resources on more competitive brands, optimization of direct sales expenses will be applied to other brands. We will actively expand our investment for brands such as Lulu, Loxonin S, Daiichi Sankyo gastrointestinal Yoshiki Nishii drug, and Transino. For Loxonin S in particular. We Representative Director, President and CEO will maximize the brand value by encouraging the Daiichi Sankyo Healthcare Co., Ltd. promotion for proper use as well as providing useful counseling information to pharmacists.
● Expand skin care direct marketing business For the mail-order business, which started in 2012, we will build upon our foundation by enriching the product line-up in terms of aging care brand Derma-energy in the growing skincare market, as well as expanding to new customers.
*1 Over-the-counter (OTC) drugs are pharmaceutical products that can be purchased without a prescription from a doctor.
28 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 29 S ® ® Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi OTC Drug Analgesic and Analgesic and Anticoagulant Anti-influenza treatment anti-inflammatory drug Edoxaban Inavir Loxonin ® ® Vaccine ActHIB Antiplatelet agent Treatment for reflux reflux for Treatment vaccine esophagitis, etc. Haemophilus conjugateb Nexium Prasugrel ® Anti-hypertensive agent Alzheimer’s diseaseAlzheimer’s Alzheimer’s diseaseAlzheimer’s Treatment for for Treatment Treatment for for Treatment Olmesartan Memary Donepezil Major Products Innovativepharmaceuticals Japanin Globalproducts Generic pharmaceutical Research and Development
Innovation and Openness Leads the Way to “Global Pharma Innovator” Glenn Gormley, MD, PhD Senior Executive Officer, Head of Research & Development Daiichi Sankyo Co., Ltd.
The Environment Surrounding the 3) a marked increase in R&D expenditures. As an Pharmaceutical Industry and the Challenge innovative organization, we must continuously for Daiichi Sankyo Group address challenges to our business and be prepared to change, or redirect, how we do The pharmaceutical industry is facing dramatic business. For Daiichi Sankyo R&D, this means challenges in our business environment. Three we must improve our productivity while making major challenges include: 1) a decrease in the efforts to reduce costs. number of approved new molecular entities, We continue to focus on developing first in 2) a shift from small molecules to biologics, and class products to bring innovative treatments to the patients who need them. One of our key focus areas during the Second Mid-term Business Management Plan (FY2010-2012) was to globalize the R&D organization – which has allowed us to harmonize our procedures and systems. As a global organization, we are able to access expertise from around the world, allowing for quicker decision making and enhanced collaborations across the globe. We have had many successes but we still have room to improve. As an innovative organization, continuous improvement is a must. Scientists by nature are always looking to improve upon things and it is this innate quality of our R&D organization that keeps us looking for better ways to do things.
The Daiichi Sankyo R&D Culture
To have a highly efficient organization, we must be willing to change how we work and how we behave. In this regard, there are several things I want us to focus on:
• challenge respectfully; • empower employees at every level; • proactively engage stakeholders; • take calculated risks.
Respectful and timely debate is a foundation of our decision-making and key for enhancing person-to-person relations, developing technical capabilities and evolving
30 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 31 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi We often We develop medicines thatuseful are a to We continuously monitor the activities of R&D R&D activities of the monitor continuously We Our R&D division has established a close close a established has division R&D Our Allan Welsher, who leads the Global Quality Global the leads who Welsher, Allan regularly meet to I Assuranceand Department, The mission of Daiichi Sankyo is to bring innovative innovative bring Sankyoto is Daiichi of mission The to maintain quality and compliance. It is a very a is It compliance. quality and maintain to to ensure we are focusing onpriorities. By setting to treat small groups ofpatients – such as orphan to a anypatient is agreat accomplishment,but ways to bring new medicines to patients anywhere patients to medicines new bring ways to speed up timelines wherever possible, wherever possible, timelines up speed the But portfolio expand our rapidly. and commitment clear a is there organization the of clear principle. Our commitment within the 5-year Business Business 5-year the within commitment Our discuss issues and share ideas. At every level level every At ideas. share and issues discuss clear goals, we will create a competitivepipeline, health. global improved for commitment a True “Global Pharma Innovator” deliver innovative products, enhance and our Contributing to Global Health and Becoming Becoming Health and Global Contributing to Compliance most fundamental necessity of R&D lies in in necessity lies fundamental most R&D of maintaining quality compliance. and organization. compliance the with relationship new treatments to patients who need them. That That them. need who patients to treatments new particularly for patients with a rare disease when rare disease when a particularly with patients for many companiesmay not want to invest very is satisfying. it research development, and in the in the world. identify we sometimes But people. of number large products, or even technologies, that canbe used is at theheart of R&D. We are alwayslooking for indications. Being able to provide a treatment a provide to able Being indications. Plan (FY2013-2017) is to increase productivity, Never Sacrifice Quality or An exampleAn continuous of improvement Establishing organizational this climate will judgment without the need for lengthy reviews. reviews. lengthy for need the without judgment Aiming For an Organization That They aggressivelywill establish partnerships find treatments for their illness, so I push myself push I so illness, treatments their for find own their on based quickly decisions make to Will Stimulate Innovation Stimulate Will the status quo, or to approach a problem in a a in problem approach a to or statusquo, the and relationships with external organizationswith relationships and and drive innovation in dif ferent ways. are many patients who are counting on us to to us on counting are patients who many are scientistsnumber of small are empoweredwho everyday, and thatis what expectI of everyone organization. By continuously challenging challenging continuously By organization. ourselves todo more, and todo better, There we will innovation. barriers many overcome to Science Laboratories, which is comprised of a a of comprised is Laboratories, Science which Sankyo, and believeI that it is a very innovative a diverse organization, where different ideas ideas different where organization, diverse a new find to together come backgrounds and problems. familiar to solutions of level. I also encourage risk taking, particularly encourage risk taking, also I level. of our organization. Therefore, I encourage active active encourage I Therefore, organization. our contribute to enhancing collaboration with with collaboration enhancing to contribute the enhance partnerswill and outside our developing through group our corporate of value dif ferent way. amI committed to establishing debates throughout the organization, regardless organization, the throughout debates in R&D. is the recent formation of our internal Venture Venture internal our recent of formation the is productive partnerships in order to deliver truly truly deliver to order in partnerships productive innovative medicines quickly patients. our to in theplanning and execution ofprograms. Of course, our risk taking requires still clinical committedbe quality compliance,to to and us challenge opportunities provide does to it but I I am ver y proud of the R&D Unit in Daiichi Innovation and Openness Leads the Way to “Global PharmaInnovator”“GlobalOpenness WayLeads and to Innovation the Research and Development
Realizing Innovation
Global Research System Establishment of Venture Science Laboratories At Daiichi Sankyo, our research facilities around the world work closely together to Daiichi Sankyo established Venture Science identify novel treatments. In Japan, Daiichi Laboratories in April 2013 to enhance an Sankyo’s Research Laboratories lead innovative innovative organization. It is comprised R&D activities of Daiichi Sankyo; Daiichi Sankyo of a small number of scientists who are RD Novare plays a role as the discovery platform empowered to challenge various kinds of for R&D and Asubio Pharma focuses on basic development through new approaches freely research to preclinical study activities – the core with their special authorities and budgets. The of discovery function. In Europe, U3 Pharma venture spirit has already started their very is actively developing new antibody drugs as innovative R&D activities. potential cancer treatments while in the U.S., Plexxikon has built a promising pipeline of small Open Innovation molecules and technical research platform. The
Daiichi Sank yo Life Science Research Centre in Daiichi Sankyo has supported the TaNeDS® India (RCI) and Tissue and Cell Research Center (Take a New challenge for Drug diScover y) Munich (TCRM) function as the strength to collaborative drug discovery project since identify innovative new medicines. FY2011. This project solicits applications for funding from researchers at universities in Japan and public research centers in Japan. In F Y2013, we began to actively seek new products and/or technologies being developed outside of Japan, including in Germany, Austria and Switzerland which will contribute to future research and development activities.
● Global Research Network
Daiichi Sank yo RD Daiichi Sankyo Asubio Pharma Novare
Oncology, Cardiovascular- Research technology Inflammator y, Metabolics and Frontier platform Regeneration Small molecule medicines Synthesis, Analysis Small molecule and Antibody and Biological evaluation peptide medicines The logo mark of TaNeDS Biopharmaceuticals OMICS Original lead generation Original lead generation Lead optimization The logo mark of TaNeDS and optimization symbolizes “a hope growing Translational research up by par tnership.” The twin leaves, which also appear as two people holding hands, represent collaboration needed to nurture the seeds Daiichi Sank yo Global Research of hope.
Daiichi Sankyo Life Tissue and Cell U3 Pharma Science Research Research Center Plexxikon Centre in India(RCI) Munich(TRCM)
Oncology Inflammatory Translational Scaf fold-Based Antibody and infectious Research Drug Discovery pharmaceuticals diseases using human (SBDD) platform Small molecule biospecimens Oncology medicines Small molecule Original lead medicines generation Lead optimization
32 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 33 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi through properly protecting our our protecting properly through *1 We have substance patents for protecting the vaccines, etc. We are also globally dealing with with dealing globally also are We etc. vaccines, technologies. Werecognize that the tools and the intellectual the property rights of others the even in taking accountinto characteristics the of area the an in with the research and development department in research development department the and in with active ingredients, and also a portfolio a also patents and of activeingredients, necessary basic technologies other and production for support order the to in model business our key are to expanding business strategy while protecting the area biotechnology-basedof pharmaceuticals, well- expansion. We are expanding the countries to ensure accurate and timelymanner. We are workingclosely cooperative a outside establishing with relationship and development. open and innovation open agencies of global health global established pharmaceutical biosimilars, substance, the technology to and latest science the adapt to order Group, strive to create excellent pharmaceutical pharmaceutical excellent create to strive Group, protecting production methodologies and formulation methodologies and production protecting biomarkers necessary research for development and products and contribute to the improvement of the contribute productsto and intellectual property.intellectual intellectualproper ty of our own as well asrespecting property business intellectual global meet the issues to intellectual the property placing intellectual rights, India, and Europe U.S., the Japan, in property personnel research development pharmaceuticaland of products,
First, we hope to succeed in biosimilar development, which will also benefit also will which development, biosimilar succeedin to hope we First, To reinforce biopharmaceutical basis of the To valuable experiences concerning biopharmaceuticals through the development and and development the experiencesbiopharmaceuticals valuable concerning through variety idea properties intellectual of as the such throughout theresearch centers.It is important that offices work closely with each other We will speed up on developing biopharmaceuticals, developing on up speed will We traditionally dispersed throughout the research the dispersed throughout traditionally for consumers (trademark). We, Daiichi Sankyo Daiichi for consumers (trademark). We, technology (patent, utility easy-to-usethe model), transferred fromthe Pharmaceutical Technology function of biomedical drugs biomedical of function *1 Global health refers to the issues concerning health and health-care across borders. across health-care and health concerning issues the refers to health Global *1 Japan to provide lower cost and highly effective highly and cost lower provide to Japan at a atglobal a level while maintainingindependence. of biopharmaceuticalof biopharmaceutical research,integrating functions dispersed contributing to addressing unmet medical needs. In addition to our acquisition of U3 U3 of acquisition our to addition In needs. medical unmet addressing to contributing one of the future key industries of Japan. distribution of Denosumab, our first major antibody drug. firstdrug. major antibody our Denosumab, of distribution level raise the order to in OversightFunction" "Biologics creatied the We development. Junichi Koga, Ph.D. generation biopharmaceuticals. This group is also also generation biopharmaceuticals.is group This centers. Within the Biologics Biologics Oversight the centers. Within of overcoming the challenges of science and science and of challenges overcoming the of discoverypharmacological and next evaluation of design (design), and the brand to promote a choice promote a brand to the and (design), design development biopharmaceuticalsof function was Corporate Officer, Head of Global Biologics Biologics Oversight R&D Division Function, patients. Then, we can link the experience to third generation biopharmaceuticals generation experiencethird to the link can we Then, patients. keyindustries of Japan.It is an area that willgrow asplatform a fordrug discovery Pharma, a bio-venture based mainly on antibody drugs, we have gained the most most the have gained we drugs, antibody on mainly based bio-venture a Pharma, Biopharmaceuticals constitute a market that has a potential to become one of the of the become one to potential a Biopharmaceuticals market has that a constitute responsible for the development of Biosimilars in in Biosimilars of development the for responsible biologicsas they reach the end of their patent biopharmaceutical functions that have been been have biopharmaceuticalthat functions research, we have established the new new have established research, the we life. Additionally, the manufacturing technology the Additionally, life. In order protect to In intellectual propertythe Function, the Biologics Pharmacology Biologics the ResearchFunction, Laboratories createddrug target-based was for Biologics Oversight Function, which integrates which Biologics Oversight Function, Division into the R&D Division. R&D the into Division Reinforcing the research Daiichi Sank yo Co., Ltd.
It is important for Daiichi Sankyo to maintain a a maintain Sankyo to Daiichi for important is It Voice Research and Development
For Enhancing the Productivity in R&D
Global decision making and Effective Research and development management investment of resources with the clear setting of the goal
Our culture within Daiichi Sankyo R&D has been We have set clear and aggressive – yet to ensure we can have robust discussions about achievable goals for the R&D organization in the science. We want the data to drive our decisions, Third Mid-term Business Management Plan. For and we expect that our internal experts challenge example, launching of 2 new medicines for major conventional thinking. Our highest decision indications, advancing 4 projects into late phase making bodies are TR-GEMRAD (Translational clinical trials after POC*1 and 9 projects into phase 1 Research–GEMRAD) for the decision in the early new clinical trial are set as important goals every phase of development and GEMRAD(Global year. By achieving these goals we can create a Executive Meeting of Research and Development) competitive pipeline while delivering innovative for the decision in the late phase of development. pharmaceutical products to patients quickly and The discussions at the GEMRAD and TR- continuously to meet unmet medical needs. GEMRAD meetings include expertise from across the organization, including Quality and Safety Collaboration with outside partners Management, Product Portfolio Management and Business Development, so we can ensure we In order to rapidly and continuously deliver are investing our resources to develop the right new drugs, we not only develop our company’s medicines for patients. products together with partner companies having excellent expertise, but also we are actively Innovation of methods of engaged in the license alliance that incorporates work and action the research results of other companies including bio-venture companies in our company. All R&D members are expected to demonstrate strong leadership and contribute to the success ● Major License/Alliance Par tnerships Related to R&D from 2010 to 2012 of our company. Each person is empowered to play a leading role in the different areas of License/Alliance Business Partner AMP-110, B7-H4 fusion protein expertise and make a quick decisions whenever Amplimmune (autoimmune diseases) possible in order to obtain a world-class National Cancer Comprehensive Research Alliance technological innovation capability. Center In order to be truly innovative, our work Etanercept requires brave ideas beyond a conventional way rPTD-protein (autoimmune diseases) Coherus of thinking. It is an expectation of each member Rituximab BioSciences monoclonal antibody (malignancy) of R&D to engage our internal and external 2012 Biosimilar business in Japan and Asia stakeholders to help test our thinking. Collaborate to Discover and NGM Develop Innovative Biopharmaceuticals Therapeutics
Narcotic Analgesic Hydromorphone Mundipharma Hydrochloride (cancer pain)
Establishment of Japan Vaccine Co., Ltd GlaxoSmithKline Strategic Alliance (Vaccine Business)
Methylthioninium chloride Solution for Injection for Provepharm Methaemoglobinaemia 2011 Therapeutic Collaboration to Develop Anticalin® Pieris Therapeutics
Biological Drug Development 2010 Biowa/Lonza Program
*1 POC, which stands for Proof Of Concept, is to confirm the predicted features concerning the effectiveness and safety of new medicines through clinical trial.
34 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 35 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi AF-TIMI 48 have been underway for the prevention prevention the for underway been have 48 AF-TIMI T celldif ferentiation. Wehave star ted an early Two global, phase 3 clinical trials of Edoxaban Edoxaban of trials clinical 3 phase global, Two vein thrombosis (DVT) thrombosis vein pulmonary embolism and (Anticoagulant: oral factor Xa inhibitor) treatment and prevention of recurrence of deep deep of recurrence of prevention and treatment the drug for several indications including including severalfor indications drug the coronary angioplastytransluminal (PCI). first-in-class medicine with a novel mechanism mechanism novel a with medicine first-in-class were recently finished. The trials of ENGAGE ENGAGE of trials The finished. recently were approved in more than 70 countries in the world. on basic research related to including AMP-110 of thromboembolism caused by atrial fibrillation Sankyo and Amplimmune also collaborate will of action that works by blocking inflammatory blocking by works that action of Since launched as a treatment for cardiac disease disease cardiac treatment for a as launched Since (PE) in collaboration with more than 8,200 patients. 8,200 than more collaboration with in (PE) biomarker discovery. phase clinical trial in the first half of 2013. Daiichi Daiichi 2013. of half first the in trial clinical phase in collaboration with 21,000 patients. The trials of of trials The patients. 21,000 with collaboration in inEurope and theU.S. in 2009,Prasugrel has been percutaneous heart need ischemic disease who HOKUSAI-VTE have also been underway for the the for underway been also have HOKUSAI-VTE In Japan,Daiichi Sank yo has been developing Edoxaban Prasugrel (AntiplateletPrasugrel Agent) and Markets and Management Management Life Cycle Bacterial Infections Bacterial Hyperlipidemia Hypertension Late-stage Late-stage Development Thrombotic Disorders Early-stage Early-stage Development Metabolics that address heavily unmet on disease on mechanisms, productsdeveloping with Oncology new mechanism of action mechanism new Cardiovascular- Drug creation based New Areas Priority Areas Priority ・ ・ ・ needs.
● ● Research Anti-thrombosis therapeuticmedicines while We are also proceeding with the research research the with proceeding also are We We are promoting the development of for autoimmune diseases. “AMP-110” is being being is “AMP-110” diseases. autoimmune for teams also focus on the areas of oncology and and oncology areas of the on focus also teams we maintain a competitive edge in the portfolio To Meet Unmet Medical Needs Medical Unmet Meet To antibody developed byU3 Pharma. HER3 is highly subsidiary organizations such as Plexxikon (U.S.) Plexxikon (U.S.) as subsidiary organizations such the taking been (Germany) have Pharma U3 and and cardiovascular-metabolics, where there there where cardiovascular-metabolics, and these In needs. medical unmet significant are are collaborating with Amplimmune, Inc. to to collaboratingare Inc. Amplimmune, with of medicines for high-blood pressure, infectious pressure, high-blood for medicines of expressed in various canceroral cells. kinasePL inhibitor X3397 is an developed byPlex xikon being categories, Daiichi Sankyo, together with with together Sankyo, Daiichi categories, Sankyo focuses on the categories oncology of Sankyothe focuses on cardiovascular-metabolics to increase our increasecardiovascular-metabolics our to competitiveness theseareas in significant with develop “AMP-110”, the B7-H4 fusion protein protein fusion B7-H4 the “AMP-110”, develop diseases and hyperlipidemia. Our research research Our hyperlipidemia. and diseases investigated with thepotential tobecome a beyond our traditional therapeutic areas. We We areas. therapeutic traditional our beyond unmet medical needs. needs. medical unmet investigated for applications tumors. liquid in both solid and initiative in research.U3-1287 is an antiHER3 “New” Areas “Priority” Areas “Priority” In research and early development, Daiichi Pharmaceutical Technology
In order to meet the diversifying medical needs and to provide pharmaceutical products with high customer satisfaction, we will continue to create and realize innovative pharmaceutical technology as "A Solutions Innovator."
The vision of the Pharmaceutical Technology Unit
"A Solutions Innovator" - The vision of the Pharmaceutical Technology Unit in the Daiichi Sankyo Group is to create and to realize innovative pharmaceutical technology. The needs for pharmaceutical products are ever evolving. In order to meet these changing demands, our role is to improve our pharmaceutical technology and realize innovative "solutions," thereby providing pharmaceutical products with high customer satisfaction. To fulfill our role, we have set numerous strategic goals in the last six years, and attempted to improve our pharmaceutical technological capabilities. Along with new technology development and high value-added pharmaceutical products using new devices, the Pharmaceutical Technology Unit was able to respond in a timely manner to the Great East Japan Ear thquake in March 2011, and was able to minimize the impact of this disaster. With several challenges found in the past six years, we will use the lessons learned from them and intend to grow fur ther in the Third Mid-term Business Management Plan.
Three strategic objectives in the Third Mid-term Business Management Plan
There are numerous situations surrounding recent pharmaceutical technology, including the growing needs for lower cost pharmaceutical products due to the medical expenditure reduction policies taken by various nations due to the global economic downturn, and the resulting increase in the low-cost generic pharmaceutical products as well as the increase in the volume of counterfeit medicine. In addition, upon the fact that the level of quality assurance has been tighten than ever because of the enhanced regulations for medical and pharmaceutical products, we, at the Pharmaceutical Technology Unit, have identified the following three strategic objectives which we will implement in Katsumi Fujimoto, Ph.D. the Third Mid-term Business Management Plan. Corporate Officer, Head of the Pharmaceutical The first objective is differentiation through superior formulation Technology Division Daiichi Sankyo Co., Ltd. technology and the "creation of high added value" by providing solutions to new business needs. The next objective is the "improvements to productivity" by acceleration of development speed, quicker launch to market, and efforts to lower cost. Finally, contributions to the global market including Japan, U.S., Europe and ASCA*1, as well as effective global utilization of operating resources including the Ranbaxy Group, in other words "collaboration," can be realized. By implementing these strategic objectives into our action plans, we can further improve our innovative pharmaceutical technology, and we will aim to become the innovator which can provide "solutions." It enables medical care which the patients and their families, as well as the medical professionals hope for.
*1 Abbreviation of Asia, South and Central America. This is internal terminology indicating markets outside Japan, the United States and Europe.
36 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 37 Back side Back After Front side Front Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Back side Back Before Additionally, we have been hosting internal internal hosting been have we Additionally, The cultivation and deployment of human human of deployment and cultivation The Organization structure that can match the match can that structure Organization Front side Front
Example: 20mg Olmetec tablet [14 tablet package] tablet [14 tablet Olmetec 20mg Example: The first of these meetings, held in fiscal 2012, was was 2012, fiscal in held meetings, these firstof The global market strategymarket global that can match the global market strategy, and and market strategy, global the match can that companies. group our of strength the was proven to be a very fruitful event. We plan to to plan We event. very a fruitful be to proven was strategies, and various measures willbe andtaken.language development, we will also aim for solid cooperation.promote will that environment an ● attended by a large number of employees, and of attendedand employees, large number a by organization that utilizesindividuals’ strength while as conduct global technological collaboration. For For collaboration. technological global conduct as continuemeetingholding this after as a fiscal2013, Starting support with professionalfor knowledge continuously improve and optimize operation operation optimize and improve continuously for used products medicinal investigational example, global clinical studies are being manufactured locallyprotect and obtain attempt to will efficiency. also We SC-CMC SC-CMC Technology Meetings with Supply the Since the environment surrounding pharmaceutical surrounding environment the Since diverse, our Pharmaceutical Technology Unit has has Pharmaceutical Unit our Technology diverse, technologypart collaboration. our as of Unit Chain mutually covering their weaknesses, and also develop develop also weaknesses, covering their and mutually place to actively place to ideas. exchange resources that can work globally areimportant productsis becoming more globalized and operation structure optimum an implemented well as companies, group global our with processes advantage mutual of taking manufacturing methods, in an attempt tolower cost andimprove operation intellectual property establishmentthe in of the are *2 to major *1 Aluminum film Odor Odor absorptionlayer transparentOdor layer Base materiallayer Tablets Additionally, as a precaution against precaution against a as Additionally, We emphasize the employees' physical visit of of physical visit employees' the emphasize We Creation of high value-added pharmaceutical high Creation of Decrease the odor by in newdeveloping blisterthe package sheet films advantage of reducing the number of medication. of number the advantagereducing of
Blister package sheet cutaway sheet package Blister ● We are actively developing and applying new new applying actively are and developing We products through cutting-edge technology productsthrough for pharmaceutical products. For example, the the example, For pharmaceutical products. for technology which can contribute to pharmaceutical to contribute can technology which tags that use highly advanced highly technology on use that tags can cutting-edge technology that existing of top for ward to the realization of unique andinnovative the patients. The main approach main The *1 Tablets that dissolve quickly by saliva when administered intraorally, so that neither water nor swallowing is necessary.is swallowing neither water nor that so intraorally, administered when saliva by quickly dissolve that Tablets *1 the has consequently and concentration, blood the in increase sudden avoiding gradually, dissolve manufactured are to that Tablets *2 application of oral dispersing (OD) tablets(OD) dispersing oral of application search all the needs addressed by medical avoid mix-ups in the consumption of medicine. medicine. of consumption the in mix-ups avoid on tablets is applied to major products to major products to to applied is tablets on counterfeit have medicine, we started effort to improve the health and quality of life of of life of quality and health the improve effort to ● The odor fromOlmetec Tabletsis absorbedby the tablets of odors the The out taking dissipated when the sheets have decreased significantly compared compared significantly decreased have sheets the we improvement. Also, previous package to this with product development to meet the diverse needs diverse needs meet the development to product highly-value-added pharmaceutical products. professionals dealing with medicines. With the the With medicines. with professionalsdealing pharmaceutical the platform of technology medical fronts, such as hospitals, to thoroughly thoroughly to hospitals, as such fronts, medical being applied to narcotics. We will make every products, which are increasingly demand to due in consumption. Product name of printing ease its identify counterfeit medicine. investigating introduction the identification of ideas ever and the provision of patient-friendly of provision the ideas ever and Extended release technologiesformulation Pharmaceutical Technology Unit, we will move move will we Unit, Pharmaceutical Technology are working to change our design to a more easily more a to design our change to are working odor absorption material added to the package absorption sheets.the odor material added to understandable, highly discernible one. discernible understandable,highly Supply Chain
Amid the current rapidly changing environment, it is necessary to change to a quick and flexible supply chain, and we will fulfill this need.
Ensuring quality targets and achieving stable supply
Currently, the environment surrounding the pharmaceutical industry is changing rapidly. Increased globalization of markets has led to expanded sales areas and handling higher numbers of products (including the rise of generic pharmaceuticals), and with these factors supply chains have become more complex. With the need to meet the requirements of Corporate Social Responsibility in addition to the importance of stable supply and quality assurance for pharmaceuticals, it has become a critical issue for companies to deal with all aspects of their supply chain, from procurement of raw materials to production and sales. It is because of the current rapidly changing environment that changing to a quick and flexible supply chain is necessary. We have a clear vision to ensure quality requirements, low costs, and to ensure a supply chain system that is capable of providing a stable supply of products.
Enhancements to supply chain technology
In order to ensure quality and a stable supply, it is important to control the optimal supply structure using supply chain technologies in manufacturing and management. As par t of our mid-term policy and strategy over the next 5 years, first I would like to mention adopting a new mindset to reduce initial costs by having a broader perspective. We will continue activities to reduce initial cost on a global level, from decreasing costs through global procurement to optimizing transport methods and optimizing manufacturing sites. The foundations for a global supply chain structure taking full advantage of the resources of each region will be built and optimized in order to create results. By implementing these strategies, we will work towards achieving our goal of a supply chain structure that is efficient, stable, low-cost and Yuki Sato high-quality. Director, Senior Executive Officer Head of Supply Chain Division Daiichi Sankyo Co., Ltd. Improving individual observation skills
What is the best way to achieve high quality results in a rapidly changing era? In addition to obvious assets such as personnel, funding and resources, ensuring the entire organization is thinking along the same vectors is also impor tant. We will work on building an organization in which, based on knowledge and experience, each individual is constantly improving their skills in order to catch subtle changes and abnormalities and work towards the greatest quality possible.
38 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 39 Daiichi Sankyo Brazil Daiichi SankyoDaiichi Venezuela Daiichi Sankyo, Inc. Sankyo, Daiichi Daiichi SankyoDaiichi Mexico Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Finishedproduct Daiichi Sankyo Daiichi Daiichi Sankyo Sankyo Daiichi Chemical Pharma Chemical Maximized use of global resources to chain supply optimize Daiichi Sankyo PropharmaDaiichi
● have we business, our of globalization the With ver y beneficial to both the employees andDaiichi to their maximum potential. Specifically, we we Specifically, potential. maximum their to through collaboration between Japan and optimizeto domestic manufacturing structures, the global level, we have exchanges ranging from from exchanges have ranging we level, global the exchange. the affiliate in involved the companies and communication. and otherIn words,in our Exchangesperiodically carried are out out. and Quality & Safety Management Unit, but also with with also but Unit, Safety Management & Quality proven have which years, several to months 3 Sankyo. We will continue to workcontinue towardsSankyo. to will We training among manufacturing andlogistic af filiates. domestic manufacturing logistic and affiliates. At arelooking at optimum manufacturing sites chain that uses the resources of each region resources region uses the each of that chain lifecycle product each of the considering plan also We commodities). global concerning management, the key word is "seamless." As "seamless." is word key the management, par t of this, a variety of personnel are rotated in for Pharmaceuticalonly Unit, not Technology personnel who can seamlessly share the vision of of vision seamlessly the can share who personnel beenbuilding and optimizing a global supply structural possible inefficiencies at looking Ranbaxy (Please refer to the diagram below Formulation (Thailand) Daiichi Sankyo Sankyo Daiichi Daiichi Sankyo Korea Sankyo Daiichi Daiichi Sankyo Taiwan Sankyo Daiichi nations Emerging Daiichi Sankyo (China) Ranbaxy Laboratories Active pharmaceuticalingredient Seamless management and personnel personnel and management Seamless by enhancement of supply chain technologies chain supply of enhancement by Pursuit of Quality, Cost and Delivery (QCD) Delivery and Cost Quality, of Pursuit Supply route for products global
The supply chain unit has adopted a barrier freea supply adopted has unit chain supply The
exchange ● to production methods based on advanced on based methods production to cooperating by costs lowering and technologies partnerswith use cost competitiveto ingredients, we will continue topursue quality, cost and stable to improve technologies and skills throughout throughout skills and technologies improve to calculating and planning from chain, supply the that urgent requests can be met quickly.In order to where people’s lives are on the line, the key duties duties key the line, the on are lives people’s where The main approach main The supply simultaneously. supply and inventory management. By switching over over switching By management. inventory and appropriately, it is necessary is it strategicallyappropriately, to and area when it comes to information coordination coordination information comes to it area when and and logistics. And pharmaceutical for And products logistics. and chain unit in regards to the organization, country organization, the regards to in unit chain Supply chains consist of many steps, from from steps, many of consist chains Supply ● ● initial costs to proposals of manufacturing plans manage inventory, including those products with becomes necessary it Therefore, demand. lower make it possible for doctors to treat their patients patients treat their doctors to for possible it make include ensuring the product reaches patients and reaches product and patients the ensuring include procurement of raw materials to manufacturing manufacturing materials to raw of procurement Daiichi Sankyo Europe Sankyo Daiichi Reliability Assurance
Since the quality and safety are the foundation of pharmaceutical products, we aim to assure optimal reliability whereever we conduct businesses, with no room for compromise.
Quality assurance optimized for the field
We make pharmaceuticals that are proven to have good safety and efficacy profiles, industrialize them using our superior pharmaceutical technology, reproduce consistent quality in our production process, and deliver them to customers. It is our mission and our number one priority as a life-science oriented company to create safe and high quality pharmaceuticals. We are confident that the quality and safety control structure of the Daiichi Sankyo Group meets the global standards. Increasing levels of globalism as well as stricter quality assurance and safety standards have demanded that we continuously meet even higher levels of quality and efficiency. The policy of the Quality & Safety Management Unit is to "carry out operations to ensure high safety control, quality assurance, and reliability assurance levels, as well as improvements to the productivity for the whole Daiichi Sankyo Group." We will respect the culture and customer needs of the local region, and assure optimum quality and safety while carr ying out and enforcing policies to maintain regional competitiveness, and aim for quality assurance structure that we can be globally proud of.
Future essential measures
We plan to establish reliability in the data to be used to apply for the approval of the oral factor Xa inhibitor Edoxaban, while also taking necessary safety steps to deliver safe and trustworthy products to the patients as soon as possible. We will further enhance the safety measures for PRALIA, a novel treatment for osteoporosis which became available to patients in Japan in 2013, and seek continuous improvement in our safety control structure of all of our innovative pharmaceuticals. Additionally, we will improve the coordination Toshiaki Tojo, Ph.D. channels between all product related divisions including research Corporate Officer, Executive Vice President, and development, supply chain and pharmaceutical technology, Quality & Safety Management Division Head of Quality & Safety Management Unit whilst executing appropriate product quality assurance steps in the Daiichi Sankyo Co., Ltd. life cycle management (LCM) measures for our new and existing products. We will also modify and strengthen the organizational structure of the whole Quality & Safety Management Unit at various levels, in order to maintain the foundation of the company to meet stricter regulations of each nation. We will work to improve the operational standards of quality assurance and safety control not only in Japan but also of the whole group at the global level. Accordingly, we will provide effective assistance/support for group companies such as rotation of personnel with required skills and knowledge, considering the strengths and challenges of each company.
40 Daiichi Sankyo Group Value Report 2013 Value Creation through Business Operation 41 End oflife cycle Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi GMP/GQP/GDP GCP/GVP/GPSP storage, transport Pharmaceutical production, Post-marketing surveillance Post-marketing clinical trial/ clinical Post-marketing surveillance and trials of pharmaceuticals of trials and surveillance control of pharmaceuticals of control andothers Good Distribution Practice, standard for the logistics of pharmaceuticals Practice, standard logistics of Distribution Good for the Good Vigilance Practice, standard for post-marketing safety safety post-marketing for standard Practice, Vigilance Good Good Post-Marketing Study Practice, standard for post-marketing post-marketing for standard Practice, Study Post-Marketing Good pharmaceuticals of control quality for standard Practice, Quality Good The unit will be managed so that the management the that managed so be will unit The assurance, quality of process the Through
: Review of the Quality & Safety The structure has been reviewed since April 2013 reviewed 2013 been structureThe has April since ● Management Unit structure Unit Management toimprove the transparencyand the flexibilitythrough increased coordination between sites, the Quality & Safety Management Unit, so that they they that so Safety QualityUnit, & Management the needs. diverse meet medical the that we will contribute to the creationof innovative standardize and optimize the safety control all at a global level. We plan to move this system operations,and analyze theglobal data to take operations, collect safety data from all sites, and and sites, all from data safety collect operations, quick and solid steps against safety risks. safety against steps solid and quick assurance and safety control within the structure of made. achievements being are can now move strategically towards a common goal. goal. common a towards strategically move now can cycleis always being conducted, and sound due to the globalization and diversification of the diversification the of and globalization the to due unify safety evaluation operations globally, unify safety operations globally, evaluation into stable operationin the year We will 2014. improve thequality and ef ficiency of such business as well as stricterregulations. Thishas pharmaceuticals pharmaceuticals of supply the and involved emphasizing the unification between unification qualitythe emphasizing involved Application/review, approval/launch
GPSP GVP: GQP: GDP: GLP GCP Clinical trial Clinical Non-clinical Investigational production drug Investigational medicinal product GMP Notification of clinical trial clinical of Notification and receive inspections by receive by inspections and *1 Research production Candidate compound Candidate compound Quality standard Quality safety related to non-clinical test execution test safetynon-clinical related to clinical trials of pharmaceuticals of trials clinical control and quality control of pharmaceuticals of control quality and control Good Laboratory Practice, standard for pharmaceutical pharmaceutical for standard Practice, Laboratory Good GoodClinical Practice, standard for the execution of Good Manufacturing Good Practice, standard Manufacturing for production
We will enhance our structures to enable stable Quality Assurance and Safety Management System Enhancing the safety control operation control safety the Enhancing Quality assurance structure for the whole the for structure assurance Quality Standard for effectiveness/safety for Standard Standard for effectiveness/safety for Standard
product life cycle ● ● ● We will operateunder the global structure when necessary.when followed from aglobal standpoint,operations.improve further our will to We them anduse following the GxP the following the regulatory agency conduct also in each will We country cycle. life product forwhole the working with dif ferent depar tmentsin our The main approach main The *1 Standards set by governments and public organizations to assure safetyreliability. organizations to and public and governments by Standards set *1 supply of high qualitysupply high of pharmaceutical products, and make ever y ef for t so that patients and medical all assurance levels, and provide activeprovide support and assurancelevels, all GLP: GCP: GMP: GMP: conduct objective group system our audits on standards appropriate for ensure companies, of our safety control operations, we are are safety we operations, our of control successful the construct for systems to group safety the global database, the of operation System) within fiscal 2013. The goalis to professionals can reliably use our products. our use reliably professionals can internal audits to make sure that GxP is being In order to enhance and increase the efficiencyincrease the and enhance to order In Pharmacovigilance (Integrated Operations IPOS Business Supported by Responsible Corporate Activities for a Sustainable Society “To contribute to the enrichment of quality of life around the world through the creation of innovative pharmaceuticals, and through the provision of pharmaceuticals addressing diverse medical needs.” To realize the corporate philosophy of the Daiichi Sankyo Group, we will continue to expand business activities and ensure socially responsible corporate activities.
42 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 43 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Businesses should work against corruption in all its forms, its all in corruption against work Businesses should
the elimination of discrimination in respect of employment employment respect of in discrimination of elimination the the elimination of all forms of forced and compulsorylabour; and forced of forms all of elimination the the effective abolition of childlabour; and encourage the development and diffusion of environmentally of diffusion and development the encourage undertake initiatives promote greater to environmental make sure that they are not complicit in human rights abuses. Businesses should support a precautionary support a Businesses should approach to Businesses should support and respect the protection of of protection respect the support and Businesses should Businesses should uphold the freedom of association and the and association of freedom the uphold should Businesses
Principle 10: Principle Principle 8: 9: Principle Principle 7: Principle Principle 2: 3: Principle Principle 5: 6: Principle Principle 1: 1: Principle Principle 4: Principle environmental challenges; environmental friendlytechnologies. responsibility; and and occupation. and internationally proclaimed human rights; and rights; human proclaimed internationally includingextor tionand briber y. effective recognition of the right to collective bargaining; collective to right the of recognition effective • • • • • • • • • • Anti- Rights Human Labour Asacorporation whichis expanding globally, weagree with thepurposes Corruption The Ten Principles of the UN Global Compact Global UN of the Principles Ten The Environment As As Reliablea Company ● We conduct corporate activities in good faith while following the standards the following while faith good corporate conduct activitiesin We the organization. organization. the Join the UN Global Compact Global UN the Join Our participationOur Global Compactthe in way solidifya is to corporateour stance principles ten the four on Environment areasin Labour, Rights, (Human and Anti- corruption) Global outlined Compact. within the of theUnited Nations Global Compact, which and are followed at alllevels of of corporate behavior so that all of our business activities comply with activities business with comply our of all that corporatebehavior of so global standards addition being socially in to responsible. also We distribute with communicate activitiesvarious our comprehensive and about information trust. of bond a form can we that so customers our Promote Ethical Business Management in Compliance with Law The Daiichi Sankyo Group executes all of its corporate activities by giving top priority to compliance and maintaining healthy relationships with its stakeholders through the emphasis of corporate ethics and compliance with all applicable laws and regulations.
Encouraging Corporate Ethics and Ensuring Legal Compliance
The Daiichi Sankyo Group complies with all applicable also serves as the chairperson of the Corporate laws and regulations in its business operations Ethics Committee in Japan. The Corporate Ethics worldwide to ensure that compliance is treated with Committee is made up of 11 internal members, the highest priority in its corporate management, and including the chairperson, and an external attorney conducts compliance management with a strong to ensure that the committee is administered in a focus on ethics and practical solutions that are transparent and reliable manner. In principle, the relevant to a life-science oriented company. committee meets three times a year. The Daiichi Sankyo Group Corporate Conduct A compliance of ficer was appointed in each Charter fulfills the Group’s corporate social group company in Japan to promote and oversee responsibility (CSR). Based on the spirit of the compliance matters. Charter, each Group company has developed a code of conduct suited to each region and its Revision to the Code of Conduct legal, regulator y, industr y and social requirements, for Compliance and holds all executive of ficers and employees accountable to it. In September 2012, the International Federation of Pharmaceutical Manufacturers and Associations System for promoting compliance (IFPMA) implemented the IFPMA Code of Practice for in Japan marketing activities as well as corporate activities involving all executive of ficers and employees, The Global Head of CSR (Head of CSR Depar tment, researchers, medical professionals, patient groups Daiichi Sankyo Co., Ltd.) oversees the Group’s and others. In line with this, the Japan Pharmaceutical overall compliance. Manufacturers Association (JPMA) made its Code of At Daiichi Sank yo, the head of the Legal Af fairs Practice*1 ef fective in April 2013. In response, Daiichi & CSR Division was appointed to the position of Sank yo and the group companies in Japan revised Compliance Officer to oversee all compliance each company’s Code of Conduct for Compliance, matters, including the Standards of Conduct which is a code of conduct for every one of its for Compliance for Japan and related rules and executives and employees in Japan, and has ensured implementation plans. The Compliance Officer compliance with the codes.
● Corporate activities to be considered for ensuring business ethics in the pharmaceutical industry
Production and Research Development Marketing & Sales distribution • Human materials • Clinical trials • Drug safety • MR activities • Animal testing • Counterfeit drugs • Biohazard, Living modified organisms • Genetic resources
• Prohibition of Bribery • Protection of Personal • Information security and Corruption Information • Transparency of Relationship between • Transparency of Relationship between Corporate Activities and Medical Institutions Corporate Activities and Patient Groups • CSR Procurement
*1 The code was prepared as a voluntary code related generally to the various activities involving all the executive officers and full time researchers of member companies, medical professionals, patient groups and others, and was implemented on April 1, 2013 by the Japan Pharmaceutical Manufacturers Association (JPMA)
44 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 45 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Fair use of genetic resourcess genetic of use Fair Biohazard measures The committee met five times in fiscal and 2012, Animal Infectious Disease Control. Regarding Regarding DiseaseInfectious Control. Animal We were recognized as having been properly properly been having as recognized were We ● ● We gain access to genetic resources in in resources genetic to access gain We formulated Rules for Biosafety, and hold meetings meetings hold and Biosafety, for Rules formulated to formulate measures to promote tight control. control. tight promote measures formulate to to sessions on training outside through techniques to developments on the Nagoya Protocol. We also also We Protocol. Nagoya the on developments to from utilization the of genetic resources. and Welfare. In February 2012, we received a a received we 2012, February In Welfare. and striving achieve to reduction number of the (in animals used) refinement and pain (minimizing anddistress). All animal Division R&D the of facilities experiments testing animal the at conducted of implementation the reviewedto prior are Animal Institutional experimentsthe by such manner. humane a in properly conducted are avoiding such accidents. conducting animal testing based on the basic basic the on based testing animal conducting Labor, Health, of Ministry the of guidelines cer tification from the Japan Health Sciences of theBiosafety Committee tosolve preventing of methods challenges concerning research genetically modified organisms, we have formulated formulated have we geneticallyorganisms, modified appropriately in containment is implemented Cartagena Recombinant with The compliance Act. engaging in recombinantengaging in DNA experiments by knowledge appropriate handling of our enhancing compliance with the Convention on Biological Biological on Convention the with compliance ensure fair and equitable sharing ofbenefits arising Care and Use Committee. Further, our in-house has included outside members since July 2012. 2012. July members since outside included has potential risks of accidents caused by researchers inspections confirm our animal experiments animal our confirm inspections respective governments, giving full consideration consideration full giving respective governments, infectious diseases under the Act of Domestic Moreover, we are recognizing and preventing preventing and recognizing are we Moreover, Foundation’s Center for Accreditation Center for of Foundation’s Laborator y Animal Care and Use. Rules for Recombinant DNA Experiments so that DNA Safety Committee met three times in 2012 Diversity, the Bonn Guidelines and the acts of of acts the and Guidelines Bonn the Diversity, In order to appropriately handle pathogens, we have have we appropriately pathogens, order handle to In but also with ethical ethical with also but 1 Animal research guidelines research Animal human materialshuman Ethical considerationEthical of use for the Good Laboratory Good studies. safetyPractice, non-clinical of standardsimplementation pharmaceutical for products the for
As the research and development organization ● ● We have formulatedRules for Animal Testing in
We not only ascertain necessity only benefits not the and We testing. The Division also established a section section a established also Division The testing. enhance to compliance R&D promotes that this, the division complies not only with Good Good with only not complies division the this, fiscal the 2012, committee met nine times. for Clinical Studies (EGCS) and the Ethical Ethical the and (EGCS) Studies Clinical for to obtaining prior consent of research of subjects consent prior obtaining to *1 Researchcompliance compliance with laws and regulations. and laws with compliance guidelines regulations and tissue human and on recombinant research, material human other of a life science-oriented company, R&D Division Division R&D science-oriented life company, a of involved deeply is Ltd. Co., Sankyo Daiichi of compliance with the basic principle of replacement of principle basic the with compliance scientific and social benefits of such research.In stem cells and induced pluripotent stem cells, cells, stem pluripotent induced and cells stem compliance with Japan’s Act on Welfare and confirm responses by using human tissues, tissues, human using responsesconfirm by of medication.In recent years, research which Conduct of Animal Experiments. We ensure ensure Experiments. We Animal of Conduct Other Human Material Researchexperts composed as well as membersof of the general public. of such research but also give full consideration dignity rights researchand of subjects over Guidelines for Analytical Research on the Human Human for Analytical Guidelines the Research on Ethical established an have we Genome/Genes, (applying alternative alsotestingwhile methods), in people’s health and well-being.Recognizing has progressed. In accordance with Japanese Japanese with accordance In progressed. has Guidelines Ethical the as such guidelines national blood and genes,in order topredict the ef fects uses other materials, human including embryonic basedon their free willand genetic totheir protecting including information personal their information. The purpose is to prioritize the DNA experiments, biosafety and animal animal and biosafety experiments, DNA Laboratory Practice(GLP)* Management of Animals and Guidelines for Proper Proper for Guidelines and Management of Animals Before conducting clinical trials, we must must we trials, clinical Before conducting Evaluation Committee on Human Tissue and Promote Ethical Business Management in Compliance with Law
Development compliance Compliance in MR activities
The development of pharmaceutical products Our Japanese Medical Representatives (MRs)*5 requires clinical trials to determine effectiveness take action by giving top priority to compliance and safety. We give top priority to protecting with Japan's Pharmaceutical Af fairs Act and human rights and the personal information of other related laws, fair competition regulations, patients par ticipating in clinical trials in order to and the Daiichi Sank yo Promotion Code for ensure their safety and welfare, based on the Prescription Drugs (DSP code)*6. Moreover, we Declaration of Helsinki. When clinical trials are operate with a high standard of ethics to reflect conducted in Japan, we always obtain informed the fact that the activities of pharmaceutical consent*1 from par ticipants before star ting companies are so closely involved with matters clinical trials, and we observe various regulations, of life itself, and also ensure that these activities including Japan’s Pharmaceutical Affairs Act are transparent to justify society's trust in the and Good Clinical Practice (GCP).*2 We have also company. In the Sales & Marketing Division, each established the Ethical and Scientific Review sales office manager announces DSP code, Board to secure and monitor the ethical and etc. to Medical Representatives (MRs) in their scientific validity of clinical trials. In fiscal 2012, internal meeting monthly, and also, a person in the committee met fourteen times. charge of Fair Competition Regulations provides Outside of Japan, we implement our clinical a one-hour direct training to the MRs in each trials observing ICH-GCP*3 based on the sales office twice a year. Declaration of Helsinki as well as following various regulations of the respective countries and the Prohibition of bribery and corruption internal quality standards of the company. To ensure transparency regarding the information Of fering gif ts or bribes to civil and quasi-civil on clinical trials, we disclose the information ser vants for their private gain could ruin the on clinical trials in accordance with IFPMA*4 reputation of the company and may violate Joint Guidelines and local laws, regulations and local laws and regulations. The Daiichi Sankyo voluntary industry standards. Code of Conduct for Compliance in Japan prohibits acts that can be construed as bribery Compliance in production and or corruption, in particular forbidding the distribution provision of entertainment or goods to public hospitals or other medical professionals with We acknowledge it is our responsibility to care which there are opportunities to do business. for the health of the neighboring residents of Similarly, our affiliates also prohibit our factories. In addition, recently, counterfeit bribery and corruption through their locally drugs that lack active ingredients or contain implemented codes of conduct, local rules, substances other than those indicated have policies and procedures. become a concern in Japan. We are also aware of this as a significant social issue, and are considering various approaches to address this.
For more information regarding counterfeit drugs, please refer to page 36-37.
*1 The prior consent of patients on a voluntary basis *2 Good Clinical Practice, an international ethical and scientific quality standard for designing, conducting, recording, and repor ting trials that involve the par ticipation of human subjects *3 The Guideline by International Conference on Harmonization of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH) which specifies the implementation of clinical studies. *4 International Federation of Pharmaceutical Manufacturers & Associations (IFPMA) *5 A medical representative (MR) is primarily responsible for visiting medical professionals to compile and provide information on the safety management of pharmaceutical products in order to ensure that the products are used appropriately. *6 A promotion code that Daiichi Sankyo established in line with industry rules formulated by the Japan Pharmaceutical Manufacturers Association 46 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 47 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Ranbaxy (India) has set up a global external external global a up set has Ranbaxy (India) In the United States, Daiichi Sankyo, Inc. Inc. Sankyo, Daiichi States, United the In Activities developedPatient and Groups" by on Policy Basic "The established we Association, Transparency of Relationship between Relationship Transparency Corporateof between Relationships Daiichi Transparency in
whistle-blowing cases in Japan, which specify which Japan, cases in whistle-blowing be confidentiality will whistleblower’s the that that include external attorneys as well as the the as well attorneys as external include that withPatient Groups" and"The Guideline for PharmaceuticalJapan the Manufacturers Whistleblower systemWhistleblower Transparency of relationship between between relationship of Transparency external parties. In addition, we have put in in put have we addition, In parties. external consequence a as treatment unfavorable any receive anonymous service to organization system. The hotline phone number is shared shared is number phone hotline The system. up set been has DS-hotline the addition, The serving Japan. channel reporting a as CSRDepartment, and can also be used by of repor ting. communication. of forms other and e-mail each company, such as a hotline or e-mail e-mail or hotline a as such company, each dedicated line that employees working at at working employees that line dedicated Sank yo andPatient Groups" in2013. We Japan have in star April, ted preparing in order to disclose information 2014. in place rules to govern the handling of internal internal of handling the govern to rules place protectedand that they willbe protected from corporate activities and patient groups corporatepatient activities and runs a 24-hour hotline staffed by an outside outside an staffedby hotline 24-hour a runs compliance. regarding information reporting channels for whistleblowers at at whistleblowers for channels reporting In website. our externally on and internally DS-hotline comprises reporting channels channels reporting comprises DS-hotline via contact can companies Group Ranbaxy Each Group company in Japan provides provides Japan in company Group Each Based on "The Action Guideline for Cooperation for Guideline Action "The on Based Also, wehave conducted employee The“Sunshine Act” went into effect in the We are also implementingWe various measures Activities and Medical Institutions /Healthcare Institutions Activities Medical and Transparency in Relationships between Daiichi between Relationships Daiichi Transparency in
We protect information and handle personal personal handle and information protect We f is c a l 2013. Transparency of relationship between between relationship of Transparency this data available to the public for review. Our U.S. U.S. Our review. for public the to available data this transfer of values made to physicians and and physicians transferto made values of The government. the to hospitals teaching about payments to Japanese medical institutions institutions Japanese medical payments about to anyloss or theft occurs. and manage information leaks or disclosures. leaks or information manage and anything happen. We have also implemented implemented also have We happen. anything and laptops. In Japan, employees also Japan, In laptops. and Sank yo andMedical Professionals in Japan in education trainings on the measures in case of of case measuresin the on trainings education enhanced security prevent enhanced measures to carry emergency contact cards so they can carry can they emergency so contactcards affiliates place have reporting in put systems to and repor ting data reflecting payments or Guideline for the Relations between Relations Corporate the for Guideline our internal regulations. We have thorough have thorough We regulations. internal our and information securityand corporateinstitutions medical activities and comply with this new law. comply new with this government in the United States plans to make make to States plans United the in government us in order to manage the risk of an information information an of risk the manage to order in us in fiscal in2012 preparation for its disclosure in leak, as well as variousother steps toprevent information leaks on the computers loaned by by loaned computers the leaks on information immediately contact the right official should official right should contact the immediately precautionary measures in place to protect protect precautionaryto place measures in computers company on contained information in accordance with local lawsin overseas. and regulations information appropriately in accordance with with accordance in appropriately information United Statesin 2013, andrequires the collection March 2012. We began collecting information Manufacturers AssociationTransparency (JPMA) Professionals, we established the Basic Policy on on Policy Basic established the we Professionals, Based on the Japan Pharmaceutical Protection personal of information Promote Ethical Business Management in Compliance with Law
Cooperative Relationship with the Clients
Training and educational activities Procurement management
We are proactive in providing compliance training and Within Daiichi Sankyo’s framework of procurement, education tailored to the unique characteristics of where each department engaging in procurement each workplace. independently undertakes its own respective PDCA In fiscal 2012, we developed “self-directed cycle under the standard of CSR Procurement implementation for countermeasures to key risks Standard established in 2011, we focus on analyzing in the head offices and group companies” as an information on business partners and clarifying the integral measure to be taken in Japan for all divisions procurement process in Japan. For clarifying the including group companies in Japan. Specifically, each procurement process, we enhance the principles of department, section or group as a unit has continued competition, review ongoing procurement transactions to identify the compliance risks presumed to be latent on a regular basis, and revise the procurement in its workplace, holding discussions to select the most procedure manuals outlined by each division important risks and taking into account the likelihood completely in light of the inclusion of new business of each risk and its impact. In addition, each unit partners. In addition, we analyze the information established and implemented measures such as training on business partners by examining procurement and self-inspection, which enabled each individual data for three years from our group companies in employee to take the initiative in managing risk. Japan multilaterally in terms of procurement types, We also conducted training specific to job organizations and suppliers. Furthermore, we take categories for new employees, newly appointed initiatives to further strengthen our procurement managerial employees and newly appointed executive process, while sharing such information with the employees and other particularly suitable employees, procurement manager in each division. as well as training that correlates to the business content of each division. Furthermore, we hold training Promoting CSR procurement sessions for all the officials and employees of domestic Group companies with e-learning to promote better Toward further promotion of the CSR understanding of the code of conducts for compliance procurement standard, we requested 185 as well as basic knowledge of the laws and regulations Japanese domestic business partners to respond related to the corporate affairs. to a questionnaire about the procurement standard and received their responses. The ● Training by job category conducted in fiscal 2012 (group companies in Japan) collection rate was 82.9% (95% as business Number of transaction basis). We will provide feedback Duration Themes Training participants to each business partner on the results we (minutes) (persons) (handout titles) Daiichi Sankyo Group collected, and proceed with a PDCA cycle with all Training for new 45 104 CSR and Compliance, hires business partners. At the same time, we will also Case studies Training for be engaged in a similar procedure for overseas Daiichi Sankyo newly appointed 40 191 Group CSR and business partners. managerial Compliance employees ● List of questionnaire items: Training for Compliance newly appointed 30 81 required for leaders, executive Case studies 1-1 Compliance with laws and social norms candidates (Human rights/Labor) Training for CSR and mid-career 30 33 Compliance, Case 1-2 Compliance with laws and social norms (Safety/Health) hires studies Total ー 409 1-3 Compliance with laws and social norms (Fair-trade/Ethics)
2 Promoting sound business operation
3 Environmental consciousness
4 Securing optimal quality and cost
5 Securing stable supply
6 Maintaining confidential information (Information security) Conference of persons in charge of compliance in group companies in Japan
48 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 49 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Offer competitive prices Secure productgood quality Secure steadydelivery stable and times supply Secure computer networks against threats confidential informationconfidential Establish and implement quality management management quality implement and Establish Prevent the leakage of personal and customer customer personal leakageand of Prevent the
Secureoptimal quality &cost Ensure stable supply Keep information security
system
4. (2) (3) (1) (1) (1) (2) 6. 5.
To provide medicine of high quality in a stable manner, which which manner, stable a in quality high of medicine provide To free competition and sound trade Control hazardous chemicals in products hazardous in chemicals Control ProcurementGreen Comply with relevant laws and international international and relevant laws with Comply Reinforce Reinforce environmental management systems effectively resources use and waste Reduce Prohibit Prohibit corruption and bribery Protect labor rights rights, human
Promote fairness, transparency, Ensure Ensure workplace safety and health Contribute to society and community
Considerenvironment Comply with laws and enhance activitiesCSR Promote fair tradeand ethics
Taking charge of promoting CSR in procurement, I took and tallied
tally with the staff members from General Affairs. & Procurement Procurement & Affairs. General from staff members the with tally for thepromotion of CSRin procurement, and am working onit now. a survey using the CSR check sheets and analyzed the result of the the of result analyzed the and sheets check CSR the survey using a survey regarding CSR in procurement, I have received a variety a received have I procurement, in CSR regarding survey capability, etc. of our procurement of raw materials. In this this In materials. raw procurement of our of etc. capability, the that reminded been also have I clients. our from feedback of company, I am also regularly also am surveyingI surveyThe clients. company, our of the corporate activities sustainability. and supply costs, integrated with CSR considering quality, demand of society toward CSR is increasing in our procurement requires society's trust in us and their support as a pharmaceutical related matters. I would like to promote CSR in procurement as one one as procurement in CSR promote to like would I matters. related is evaluationfor quality is our of assurance stable system, supply Dept. Based on the result of analysis, I have drafted a 3-year plan plan 3-year drafted have a I analysis, of result the on Based Dept. Fair and reliable corporate and Fair activities clients toward our Product ProcurementMaterials Department, DivisionGroup, Chain Supply Daiichi Sank yo Co., Ltd. Masanobu Kikukawa Masanobu
conventions
following requirements and works together with them to provide support to achieve their goals. their achieve support to provide to them with together works and requirements following (2) (3) (4) (2) (2) (2) (3) (4) (1) (1) (1) (1) (1) (1) 3. Daiichi Sankyo encourages all of its suppliers to engage in socially responsible actions to meet the meet the responsible socially actions to in engage to suppliers Sankyo its of encouragesDaiichi all 2. CSR procurementCSR outline 1.
● Voice Mutual Growth of Employees and the Company The Daiichi Sankyo Group places "People" as its most important "Resource." Through the implementation of our Human Resources Management Initiatives, which is based on our business strategy, we aim for the mutual growth of our employees and company.
Promoting Human Resources Management Initiatives in Accordance with Business Strategies
Daiichi Sankyo Group’s business activities resource policies to implement our corporate are becoming increasingly diverse and taking mission and vision. The philosophy shows the place on a more global scale especially as the employees the entire picture of human resource group has been pursuing collaboration with management promised by the company and Ranbaxy. Approximately 30,000 Daiichi Sankyo specifies the ten items listed below, including the Group employees currently work in more than ideal approach to organizational management 50 countries, with employees working outside and expectations for leaders. of Japan accounting for about 70% of our workforce. To be successful in such diversified and globalized business operations, employees ● Daiichi Sankyo Human Resources must fully respect different cultures, values Management Philosophy and perspectives, while acting with high ethical standards and a sense of responsibility. Preface Globalized business requires close The Daiichi Sankyo group treats our people collaboration and cooperation between regions. as the most important asset. The realization of our company’s mission and vision and its The Group utilizes talent exchanges among sustainable growth cannot be achieved affiliates that may last from a few months to without a high level of engagement and several years, in which employees can acquire contribution of our employees. To ensure new technical skills and knowledge. Through this, we will express the basic principles of this personnel exchange program involving HR management as the “HR Management different countries and regions, employees learn Philosophy”. to work in diverse and globalized environments, ● Organizational Principles respect different cultures and values, and ● Expectations of Leaders welcome diversity, aiming to facilitate global ● Basic Philosophy of Human business expansion. Resource Management The Daiichi Sankyo Human Resources ● Compensation Management Philosophy embodies human ● Recruitment and Development ● Performance Management ● Daiichi Sankyo required talents ● Employment /Work Environment Required talents ● Employee/Labor Union Communication ● Roles of HR Maximizing performance as Maximizing performance as an individual an organization ● Roles of Management
Total Professional optimization
Compliance
50 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 51 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Reemployment of retirees in Japan retirees in of Reemployment Promotion of employment of physically or persons challenged mentally We have started a reemployment system for all retiring will strategically take retirees into consideration with with consideration into retirees take strategically will the employment of physically or mentally challenged challenged mentally or physically of employment the withdisabled employees through communication on through our dedicated portal site. Furthermore, in addition to to addition in Furthermore, portaldedicated our site. through been have initiatives measuresthese acrossCompany, the and the assignment policy, as well as any necessary any as well as policy, assignment the and environment. working the to adjustments employees who hope to continue working with us. We We us. continue working with employees to hope who employment for principles basic the corporate values, all employees. In addition, we maintain close relationships relationships close maintain we addition, In employees. all regulara basis, toensure they are able todevelop and Our group companies in Japan and Daiichi Sankyo companies Japan group and Our in established in line with“The Act forPromotion of as in Sales, Production, and Research and Development. Production, and Sales, in as our management team, and the role model introductions introductions model role the and management team, our environment working accordance the with in engagement respect to strengthening the further development of our our of development further the strengthening to respect persons and encourage personssensitivity and by understanding and potential. fullest their perform to Happiness Co., Ltd., a special subsidiary company subsidiarycompany special a Ltd., Co., Happiness promote Disabilities"(Japan), Persons Employment of with promoted to aim for careerdevelopment and enhanced Women's Forum was held. Glenn Gormley, Senior Executive Senior Gormley, Glenn held. was Forum Women's the R&D Women's Forum.In February of the2013, First R&D go ideas that fresh and new to leads which organization, the Since 2012, many employees are actively participating in employeesactively many are participating in 2012, Since Of ficer, the Head of R&D Division, presented with other Global discussion session was held afterwards. held presenters have was session The discussion is focusing on creating a rewarding workplace environment. workplace environment. rewarding a creating on focusing is understanding fact mutual that the on emphasis special put experienceis or stage, life gender, culture, regardless of to critical diversity is words, other in success; our for key the Also, innovation. create and wisdom conventional beyond par ticipants havereaf inunderstandings firmed with global of leadersdif ferent that cultures bringing and communication will Leaders on Leadership, Diversity and Work-Life Balance, and a In regards to our furtherance of diversity, R&D Division in Japan Japan in Division R&D furtherance our diversity, regards of to In Over100 employees attended the forum and activelypar ticipatedin the
thoughts about the diversity of global leaders and work-life balance overseas." balance work-life leaders and diversity global the of about thoughts add great value to the organization. discussion. Many employees felt that they were "able to understand concretely the concretely the understand to "able were they that felt employees Many discussion. 2012 s Forum ’ Ourgoal fordiversity is not limited to the The Daiichi Sankyo Group Corporate Sankyo Charter Conduct Group Daiichi The
We contribute career development of women by by career contribute women of development We selective a program, (WiL) Leadership in Women Career development support for women in Japan Promoting diversity Promoting Reinforcement of Human Resources Management Resources Human of Reinforcement team (total number of participants in Japan: 550). 550). participants of Japan: (total number team in states that diversity should be of the utmost concern states of the diversity be that should stipulates that diversity is of the utmostimportance. at our company, the supportivemessages the from company, our at gender, race, age, ethnic background, globalization of talentbut also ensuring that we each employee their maximumto living up potential. encouragement training” to help women at our our at women help to encouragement training” companyclarif ytheir career plans and find fulfilling Our Human Resource Management Human also Philosophy Our Since fiscal we have 2010, been conducting “career develop all of our employees to their fullest potential, potential, fullest their employees to our of all develop religion or disability. regardless of personal characteristics such as their regardlesspersonal characteristics their of as such program for women interested in leadership positions positions leadership in interested program for women roles as well as“career assistance their on have women managerial employees who training” for in order to drive the company forward.company the drive to order in innovatively, a diverse environment is crucial, with with crucial, is environment diverse a innovatively, In order to expand our business globally and business and globally expand our order to In R& D Women Mutual Growth of Employees and the Company
Human Resource Development
Reinforcement of business Fostering junior and mid-career employees infrastructure in Japan through fostering and securing the leaders In alignment with our Human Resource Management Philosophy, we focus on fostering our Our basic policy is to foster professionals who employees who can embody "Innovation" "Integrity" have a broad perspective through on-the-job and "Accountability" through daily operations. experience. We train and support talent who will Especially for mid-career employees, we offer take important roles at various workplaces by the assignments optimizing their skills as well as rotating job assignments, trainings or On-the-Job- training programs and opportunities to study, which Training, and evaluation at each level. In addition, help them acquire practical knowledge and strong at an early stage we screen new or mid-level leadership skills necessary for corporate leaders. managerial employees as potential candidates for executive managers who will look over each Reinforcement of management capability and ever y operational and functional unit and manage them as a whole. We provide various We have provided training oppor tunities and development opportunities such as in-house self-study for personal development targeted and external trainings, challenge for new areas, to new managerial employees. While continuing and human resource exchange at a global level. to implement such traditional methods, through deployment of a new personnel system in Japan we will place and appoint qualified employees to manage each line of business, which strengthens organizational management capability. Voice
I’m going to take advantage of the new sense of Because I have overcome the physical distance, value to build relationships of trust. I firmly understand the company policy and vision.
Paras Jain Gilberto Hayashi Drug Delivery Research Group, Formulation Technology Research Laboratories Administration & Planning Group, Supply Chain Planning Department, Pharmaceutical Technology Division, Daiichi Sankyo Co., Ltd. Supply Chain Division, Daiichi Sankyo Co., Ltd.
It’s been an enriching year working in Japan at Daiichi Sank yo. I was working in a plant in Brazil, and what I realized when I have come to understand the Japanese culture’s way of I came to Japan was that I hadn’t truly understood the accommodating ever y individual and situation. Ever y thing policy and vision of headquarters in Japan. Because I have in Japan is organized around this principle. There is a strong overcome the physical distance, now I have learned a lot consciousness about high quality, and drug products are required about the differences in culture, mindset, and business to follow these philosophies. Also, I learned the Japanese value processes between the two countries. Being able to of making mutual collaboration and trust a top priority. Work have speedy communication is very important. I believe culture values like Ho-Ren- bringing excellence So (reporting, contacting, from both Japan and and consultation) supports Brazil enables me to team spirit and collaboration. achieve more. When I Teamwork is always greater go back to Brazil in the than efficient individuals. future, I’ll be able to During the next year, I will be build cultural bridges focusing on learning more by fully leveraging about superior technologies, my experience so I and the Daiichi Sank yo way can contribute to our of product development and businesses in both collaboration. When I go back Japan and Brazil. to Ranbaxy, I want to make use of these experiences by extending my understanding about Japan, Daiichi Sankyo technologies and by building relationships of trust.
52 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 53 . 1 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Thus, we ran a pilot in Japan of an“Work Place vibrant corporate culture are reinforcing active active reinforcing are culture corporate vibrant work and life cycles and diversity management”. diversity cycles and management”. life and work focusing on resolving problems and disclosing working hours or provide a better benefit a provide package, or hours working with the principles of the International Labour International the of principles the with with the labor union that guarantees the right of of right guarantees that the union labor the with their responsibilities under the same goal. In order order In goal. same the under responsibilities their best the produce continuously employees to for and gender equality”,“review of working style and company. the of values support the address work safety & health and labor time time labor address safety work and health & are assured by conducting positive discussions discussions positive conducting by assured are order“countermeasures of birthratedeclining the to Organization (ILO). We have established the established the have We (ILO). Organization employees to organize and engage in collective collective in engage and organize to employees greatly, and the values employeesthe and our of greatly, are and the commitment of all employees to fulfill and relationships among employees at the work the employees at among relationships and employees, also but positively impacted activities for better creating solutions as employees such of tasks.operational open-minded communication among employees among communication open-minded developed in response to the government policies , in in , policies government the response to in developed culture that promotes mutual understanding. diverse, webelieve that thekeys tocreating a Conversation Program” to improve involvement involvement improve to Program” Conversation Communicating with the labor union labor the with Communicating vibrantCreating corporate a culture reduction of working hours” and “ to realize better realize to “ and hours” working of reduction management through the PDCA cycle * cycle PDCA the through management bargaining and action. The rights of employees of rights The action. and bargaining but, more importantly, as a means to enhance and and enhance to means a as importantly, more but, information with high transparency to address transparency to high with information accordance in issues, labor-management many “Work-life Cycle” not as a simple measure to reduce place. The organization where this program was was program this where organization The place. improvement an showed only not implemented, in relationships and mutual understanding among results, it is important to cultivate a corporate a cultivate important to is it results, Daiichi Sankyo Group has established a a established has Group Sankyo Daiichi Labor Management Committee for Japan to Labor Management Committee to Japan for Because our surrounding environment changes changes environment surrounding Because our In Japan, notion of work-life balance has been In Japan, we have concluded a labor agreement labor a concluded have we Japan, In Promoting work-life balance in Japan balancePromoting work-life in We respect the core labor standards of
to create a comfortable a create workplace environment to regular to addition In employees. various our for withstrictness, and we takemeasures toprevent we provide training to employees working at at working employees to training provide we *1 A management process based on the steps: Plan, Do, Check, and Act. across a range of regions in the world including including world the in regions of range across a awareness of the importance of respecting respecting of importance the of awareness as well asinformed consent and obser ving skills. In dealing with violations, we emphasize emphasize we violations, with dealing In skills. lawyers other with and consult fairness and social at the head office, other offices and the labor labor offices office,the other head and the at emergingeconomies, are alsowe working on human rights issues in collaboration with outsourced manufacturing. Sankyo Group on Dec. 10, Human Rights Day. Rights Day. Human Sankyo10, Dec. Group on of Declaration of Helsinki, etc. To heighten heighten To etc. Helsinki, Declaration of of external parties rather than keeping the issue issue the external keeping parties rather than dealt is case Each company. the within closed case studies and improves their consultation consultation improves their caseand studies educational activities about harassment, harassment, activities about educational of working employees, and we recognize that a a that recognize we and employees, working of developing global business. a business partners concerning procurement and partners and procurement business concerning human rights, a message was sent by the Global Global the by message sent was a rights, human medicine at clinical tests) under spiritsetthe up union. This training teaches counselors about about counselors teaches training This union. harassment counseling desks, which are set up up set are which harassmentdesks, counseling respecting human rights efforts our in managerial employees, at to hires new all job grades, from material approach of respect information genetic management of involves the for human rights in research and development processes respect human rights, and that this is critical for repeat of misconduct. repeat misconduct. of Moreover, in light of developing our business business our developing of light in Moreover, Head ofCSR to all the employees ofDaiichi ICH-GCP (the implementation standards of standards of implementation (the ICH-GCP human rights In Japan, weprovide ongoing training on International Labour Organization (ILO) as rights rights as Labour International Organization (ILO) It is recognized that corporate activities must Initiative on anti-harassment on Initiative Basic principles of respecting of Basic principles Fostering CorporateFostering Culture Mutual Growth of Employees and the Company
● Systems and measures to support diverse ways of working Name(s) of the Systems/Measures Details Diverse ways of working It aims to enhance the independence and creativity of employees with increasing efficient use of working hours and improving productivity, As for balancing both childcare/nursing care as well as to maintain and improve a healthy mind Flextime and work, we have been promoting a diversified and body, thereby achieve the harmony of work and personal life. For this purpose, while working environment in which employees can work without hours are adjusted on a monthly basis, working unnecessary pressure. Especially for the areas in hours of the day are allowed to be flexible. Employees who raise children up to the end Japan where it is difficult to use public day-care Shorter working of the third grade in elementary school are hours for childcare able to shorten their working hours during centers, we have established 4 in-house day-care (fixed time system the day. Under flextime system, the system and flextime system) centers called Kids Garden: two in the R&D centers can also be applied. (Shinagawa, Kasai) and one each in the head office Shorter working Employees who have family members in and the factory (Hiratsuka). Some of the employees hours for nursing care need of nursing care are able to shorten (fixed time system their working hours during the day. Under using the Kids Garden mentioned that they couldn't and flextime system) flextime, the system can also be applied. have returned to their previous jobs without the In the area where a nursery admission is difficult, an in-house nursery (Kids Garden) is facility. However, the circumstances for child-care established as a support measure for children and nursing care have also been diversified. Thus, waiting for admission to a nursery. Childcare is provided either full-time or temporary. one single system is not enough to meet the needs Full-time childcare Children of the employees on the waiting list for all employees in order to continue their jobs. In-house nursery for authorized nurseries, between the ages (Kids Garden) Therefore, we have altered the system so that the of 57 days after birth to pre-school, are employees who need to take care of their children generally admitted. Temporary childcare and/or elderly relatives can work more flexibly, as Regardless of waiting status, it can be used well to work on weekends/holidays and/or take night when local nurseries or kindergartens are on holiday and by the pre-registration along shifts as they request. In addition, we plan to create with the predetermined review. an information booklet for employees to know how Adjusted area and MRs are allowed to adjust working hours they can balance working for the company and their working time system (days) depending on the circumstances of (short time work the family and to request a consideration needs to provide nursing care. system for MR*1) for work location. Voice I can concentrate on my job because I can Noticing the importance of time management, feel my daughter near me all the time. I can work much more efficiently now.
Shin Watanabe Anri Aki Facility Management Group, R&D Administration & Support Department, Group I, Frontier Research Laboratories, R&D Division, R&D Division, Daiichi Sankyo Co., Ltd. Daiichi Sankyo Co., Ltd.
Thanks to the in-house Kids Garden, I can concentrate on my After becoming a mother, I realized the importance of time job without worries because I have my daughter near me all the management more than before. Every morning before I go to time. It provides me a feeling of security because I can pick up my work I set my priorities and check my to-do list, so I can work daughter any time if there’s an emergency situation. Every morning much more productively now. My one-year-old son spends the I commute by train with her and take her to the Kids’ Garden inside day at our in-house Kids Garden. I can pick him up right after my office, and in the afternoon my wife picks her up. Sometimes I I finish my job, and I am so thank ful for this great environment pick her up in the afternoon instead of my wife, and on such days, where I can continue my full-time job. the limitation of time makes me The Kids Garden’s ser vice work more intensely. is ver y satisf ying and meeting At other day-care centers I our needs and conditions. hear that parents have to bring For example, the nursery’s their kids’ blankets, sheets, baby various events are held in the wipes from home and bring them evening after regular hours back in weekends to launder. of operation so that we can Thankfully our Kids Garden at tend the events. I’m ver y provides all those services which glad that they take great fulfill our needs. During working care of ever y child. Because hours, sometimes I happen to all the other mothers are my meet my daughter when she laboratories’ colleagues, we is out for walk. I get a little shy have so much in common having my daughter see me at and can share information work, but it is also a with each other. They are all happy moment. encouraging friends.
*1 A medical representative (MR) is primarily responsible for visiting medical professionals to compile and provide information on the safety management of pharmaceutical products in order to ensure that the products are used appropriately.
54 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 55 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi ). In ). cooperation with theDaiichi Sank yo 1 Furthermore, an industrial physician has has physician industrial an Furthermore, Initiatives
which provides suppor t using throughout have a also We set up Japan. a unified approach their families outsideand in both affiliationJapan in with an external employee assistanceprogram with all employees. Industrial physicians are also also are physicians Industrial employees. all with these safety management activities in Japan. safety these Japan. management activities in at thegroup headquarter aspart a of a system and in each of fice (once a month). The activity actively involved committeethe in meetings. out initiatives promoting safety management promoting for initiatives out awareness health. of individual enhance counseling system available for employees and employees and available for system counseling Central Safety and Health Committee to promote domestic companies Japan(twice group in year) a Group Health Insurance Association, we carry Insurance Association, we Health Group (EAP* healthy workplaces and initiatives designed to to designed initiatives workplaceshealthy and been placed by Human Resources Department Department Resources Human by placed been managing working hours. We have set up a Group Group a up set have We hours. working managing results are summarized shared be minutes the to in in consultation with the labor union, Safety and union, labor the with consultation in Based on principles and measures establishedand principles Based on Health Committee meetings have been held at all Association. A stresscheck carried out as a self-caremeasure showed that stresslevels werelow The physician consultation rate for employees working long hours is 96%. Those requiring requiring Those 96%. is hours long employees rate for working consultation physician The The return-to-workThe assistance program was revised for greater effectiveness length (time and The databank has also included a self- check test (stress check and fatigue assessment fatigue test) and check (stress test check self- a included also has databank The provides of employeessystem rendered incapable insurance disability long-term Group The With theaim toimprove theconsultation rate wecooperate(41.3%), with theHealth Insurance vacationis granted, whichis carried outin cooperation with theHealth Insurance Association. follow-up care work with the industrial physician and super visors to receive individualized from work. from working for a medium- to long-term period due to sickness or injur y with a fixed por tion of their guidance. compared to the nationwide average.Mental health training is provided at each employee employees on administrative leave who return and reduce the number of workdays spent away away spent workdays of number the criteriareduce changes new improve number orderof return the work and for to follow-up) in the and to return who leave administrative on employees level. income as compensation, up to retirement income compensation, as to up age. in addition to theresults ofmedical checkups which employees canhave an access. In addition to statutor y medical examination (100% consultation rate), a health screening Systems Systems Japan forlaborInitiatives safetyin and health and Measures for employees working hourslong Medical checkup program Return-to-work assistance Fostering mental health Health databank Health long-term Group insurance disability system ● We are actively involved in preventing work-related work-related preventing in involved actively are We Initiatives regarding industrial Initiatives health safety and Fostering of Industrial Safety and Health working safety the of the securing consider We Industrial Health Safety and their own working environment. working own their work with ease and enhance their productivity their enhance ease and with work to be an important responsibility of the Daiichi Daiichi the of responsibility important an be to *1 Employee*1 Assistance Program. An employee support program sense of ownership among employees toward employees toward among ownership of sense a work environmentin which employees can accidents and ensuring the physical and mental and recurrence of industrial accidents and work- and accidents industrial of recurrence and occupational safety and healthincluding carefully Sankyo Group, and it is a cornerstone of all all cornerstone of a is it and SankyoGroup, environment and the health of our employees employees our of health the and environment by implementing a sense of independence and independence and of sense a implementing by health employees, of our particularly promoting by related sickness. Furthermore, we have strived to strived to have we Furthermore, sickness. related improve employee satisfaction creating through business activities.matter a As course, of occurrence of prevention the to given is priority Enhancement of Communication with Stakeholders We will strive for establishing a favorable relationship with the stakeholders including our patients and medical professionals through communication and cooperation.
Basic policy on communication issues
We recognize that "a company is a member of Additionally, we work to enhance our society" and is required to fulfill the responsibility communication activities so as to deepen of transparency and accountability to the understanding of corporate management stakeholders. Therefore, Daiichi Sankyo Group and activities of shareholders and investors Corporate Conduct Charter stipulates “We and promote the understanding with the local actively communicate with our stakeholders community and consumers. by disclosing corporate information in a timely On the other hand, with IT systems and appropriate manner in accordance with the advancements and information circulating principles of corporate accountability. We take in significant quantities, we recognize that appropriate measures to manage and protect diligence in information management is required personal and customer information and the by companies. We have defined the policies confidential information of our and and procedures mandator y for each region other companies.” with respect to the personal information and Because our products are life-science customer information, to protect the confidential related products, it is critical to properly information in all aspects of collecting, using, communicate our messages to patients and storing, and disposing of information. medical professionals such as doctors and pharmacists.
● Communication with stakeholders
Medical professionals Patients
Collection, provision and Inquiries and answers dissemination of information
Daiichi Sankyo
1 Television commercials, MRs* Product Information Center Websites Appropriately manage all confidential information
Provision and dissemination of information, inquiries
Shareholders and investors Local communities Citizens
*1 A medical representative (MR) is primarily responsible for visiting medical professionals to compile and provide information on the safety management of pharmaceutical products in order to ensure that the products are used appropriately.
56 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 57 No.1 No.1 (N=308) (N=2,451) Dec. 2012 No.1 No.2 (N=300) (N=2,440) Dec. 2011 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi No.1 No.2 (N=320) (N=2,648) Dec. 2010
2 1 Assessment by questionnaire Providing information Providing that meets real needs manufacturer of cardiovascularmedicine.
field Overall assessment of MRs* Ranked as the leading manufacturer in the medicine* cardiovascular The Division seeks to foster an environment environment foster an seeks Division to The The Sales and Marketing Division’s mission mission Division’s Marketing Sales and The ● to bringing greaterto benefit more patients. to *1 Assessing MRs on a scale of one to ten to one of scale a on AssessingMRs *1 leading cardiologists the by as selection of Rate *2 cooperation of outside research company outside cooperation of Source: Research commissioned by Daiichi Sank yo with and enhanceMR activities on an ongoingbasis area the in cardiologists by companies among activities. MR of assessment overall an in No.1 as Sales & Marketing Division strives to improve improve strives Division Marketing to Sales & obtainmeaningful and actionable feedback.In manufacturingof activities cardiovascularthe in company and their own work, which is the key key the is which work, own their and company in whichemployees can workas producea team to results. As part of these efforts, the periodically customers to surveyingby our ranked also Sankyo was Daiichi field. medicine is for each of itsMRs to take pride in the ● December 2012, Daiichi Sankyo was ranked first first ranked was Sankyo Daiichi 2012, December efficacy and safety and efficacy andsafety Gathering information on Information on efficacy efficacy on Information MRs Medical institutionsMedical Patients pharmacists and nurses) and pharmacists Medical professionals (eg. doctors, doctors, (eg. professionals Medical pharmaceuticals Proper use of medical medical
Increating our trainingmaterials, welisten directly to thepeople whoare involved Workflow of MRs professionals
The role of the MR is particularly vital in particularly in is vital MR the of role The
We have organized a training course forMRs and are involved with building its contents. ● Taichi Kiyosue Taichi to medical care. medical to We aim to "provide customer-oriented information" and and customer-oriented information" "provide to aim We this goal,Daiichi Sank yo will trainMRs who can professionals. medical to so that theMRs is recognized as a"trusted medical par tner" from all the people related doctors and their patients. patients. their doctors and SalesInformation Group, Training Training& Department Company Japan Division, Marketing Sales & appropriately convey the value of our products products our appropriately of value convey the gathering, providing disseminatingand organize high-quality a training course. doctors andpharmacists. Daiichi Sank yo’s goal in the actual treatment in the medical field, and seek to address the customer’s customer’s the address to seek and field, medical the in treatment actual the in organize perspectivehigh-quality We courses training. training needs the through and provide "customer-oriented information" that can specifically describe the benefits to benefits to specifically the describe can that information" "customer-oriented provide is to be recognized as a trusted achieve To profession. medical entire the by medical par tner information for medical professionals, such as as such professionals, medical for information Itis veryimportant tous that the training"have customer'sa point of view". Weaim to Communication with patients professionals with medical Communication and Daiichi Sankyo Ltd. Co., Diverse ways of communication: MRs communication: of Diverse ways Visits (Interviews) information
Providing disseminating and Voice Enhancement of Communication with Stakeholders
Diverse ways of communication: We also devised and administered a system Product Information Center for sharing in-house the customer feedback received by the Product Information Center, Daiichi Sankyo’s Product Information Center which enables us to analyze as well as visualize in Japan, under the auspices of the Product problems. We aim to utilize this information Information Management Department, strives to continually improve our business and our to personally serve patients and medical products, thus contributing to a better world. professionals by delivering accurate information with innovation, integrity and accountability, Diverse ways of communication: which are the Group’s three shared values. We disseminating helpful information via particularly focus on two of our eight corporate television commercials and the websites commitments: to provide the highest quality medical information; and to be an ethical, trusted, In addition to ef for ts to educate and inform and respectful partner. We also exercise care medical professionals, we use television in the provision of high-quality, consistent commercials and websites to provide patients information by consulting a wide and their families as well as the general public range of pharmaceutical materials and with information on the diseases that our information databases. medicines treat or help to prevent, such as With the great variety of information available dementia and reflux esophagitis and influenza these days, it is vital for people to be able to on our websites. Our Website, "Influ News", sort out the accurate information from the is available in English, Chinese, Korean and inaccurate. At Daiichi Sankyo, we are committed Portuguese for foreigners living in Japan. Also, to conveying accurate, error-free information “isshogaiine.com” ("Together Is Better") is a that people can easily understand, and we do Japanese website that introduces information our utmost to bring peace of mind to worried on dementia and caretakers of people with patients. Daiichi Sankyo conducts on-going dementia; and muneyake-donsan.jp ("Heartburn training for employees designed to enhance the and Acid Reflux"), provides information on reflux experience of all patients calling the Product esophagitis. Our “e Food Dictionary” application Information Center. In particular, we believe that includes recipes using seasonal ingredients with understanding the real intentions behind inquiries calorie breakdowns. Since June, 2011, it has now from patients, their families and caregivers, and been downloaded more than 1.2 million times, responding to them in an accurate and sincere testifying to its wide appeal. manner is more important than ever.
● Number of inquiries received ● Breakdown of inquiries by content (pharmaceutical products) (fiscal 2012) (Cases) Suggestions and requests 2% Efficacy 23% 150,000 Indications, 130,000 134,000 dosages, 125,000 and pharmacological 117,000 actions 120,000 110,000 Other 13% Including requests for reference materials 90,000
Peripheral 60,000 product information 17% Including pharmaceutical affairs, drug prices, 30,000 and pharmacokinetics
0 Quality 17% Safety 28% FY2008 FY2009 FY2010 FY2011 FY2012 Quality, physical properties, Adverse reactions or additives, stability, incompatibility, interactions, kidney disorders, packaging, and disposal pediatrics, and pregnancies
58 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 59 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Efforts improve qualityto of information
we will contribute to the health products. our of power care brand the enhance as ofpatients well as to evaluate medical needs and provide science- provide and needs medical evaluate to when and how we will provide necessar y of the drugs in medical practice. medical in drugs the of enforcing transparency guidelines. continue As we a publication plan for each product defining continue to provide information based on the the on based information provide to continue ensure to relationship clearly the defines based, value-added information in a timely manner, manner, timely a in information value-added based, releasing risk management plans (RMPs), and and (RMPs), plans management risk releasing information about the safe andeffective use procedures specified by the Good Good the by specified procedures through support them will we IIS, for role new on focusing addition, In research. high-quality implement create and will we products, key increased transparency with a contract that that contract a with transparency increased For post-marketingFor surveillance, will we Post-Marketing Study Practice For our (GPSP). ●
The medical affairs business is still a relatively new concept in Japan. We are are We Japan. in concept relatively new a still affairs medical is The business In the pharmaceutical industry, we must quickly address changes in the medical medical the in changes address quickly must we pharmaceutical industry, the In In addition, it has become increasing increasing become has it addition, In Creation of Medical Affairs Department Medical of Creation
Aiming for high quality information high for Aiming provisions
We are increasingly expected to correctly correctly to expected increasingly are We value-added information. information. value-added Yukihiro Okutani view and provide as high-quality and and high-quality as provide and view we meet our mandate and serve the medical practice in Japan. Along with the three and product a of use proper the promoting to contribute and needs business current the field medicine of while taking account progress of the medicine medical change and in in the aim of fur ther strengthening and enhancing Three keywords helping to maximize the potentiality maximizeThree keywords the to products. of helping and to generate synergies, and thereby we will establish a new business model to meet meet to model business new a establish will we thereby and synergies, generate to and arena andmaintain suf ficient ability and skill togenerate andprovide conduct post-marketing surveillance on the position and value of our products in the the in products our of value and position the surveillance on post-marketing conduct environment and to provide mostcreates products. our value to recent and best information. We also believe that this stakeholders, and develop internal guidance guidance internal develop stakeholders, and proceduresand/or appropriatefor management supporting investigator-initiated studies (IIS), determining the best activities and functions for our medical affairsmedical ensure department our for functions to activitiesbest and the determining of unsolicited requests for information on off- on information for requests unsolicited of actionable information. We established the established the We information. actionable our communicationour scientific of and determine benefits and risks that drugs pose to to pose drugs risks that benefits and determine demands with sincerity by creating and keywords pursuit "the high-qualityof and foster "spirit of to productsscience," our ", professional each of standpoint the from information gather relevantdepartments to maximizing potential. its label use. use. label provide information publicationsthrough to medical information. In addition to the current current the to addition In information. medical post-marketing surveillance in role a play department the will andmanagement, life cycle patients from the medical and scientific point of of scientific point and medical the patients from Launch of new medicine is not our goal. We believe it is our responsibility to consistently responsibility to our is it believe We goal. our not is medicine new of Launch important that pharmaceutical social and changes environmental to respond companies Daiichi Sank yo Co., Ltd. Medical Affairs Department, Head of Business Intelligence Division, Japan Company Japan AffairsMedical Division, Intelligence Department, Business of Head Medical Af fairsDepar tmentin April2013with "transparency," every member of the Medical Affairs Department will work with other other with work will AffairsDepartment Medical the of member every "transparency,"
● Voice Enhancement of Communication with Stakeholders
Communication with Shareholders and Investors
Promptly disclosing information Disclosure of Environmental, Social that is easy to understand and Governance (ESG) Information
Daiichi Sankyo discloses timely information to We emphasize the disclosure of information on stakeholders through news releases and other our environmental, social and governance (ESG) means. Stakeholders can access our website initiatives in response to the concerns of our for details of our financial results, information investors. We are focusing on management of materials, shareholder reports, securities report ESG issues that may create business risk with and materials related to shareholder meetings. respect to global management, and are proactively implementing activities such as ESG information Interactive Investor Relations disclosure through our Value Report or website and communication with ESG investors. Daiichi Sankyo emphasizes interactive communication with individual investors and Basic policy on profit distribution shareholders. The company issues a Japanese language email magazine with the latest The Company regards the distribution of profits investor relations information twice monthly to all shareholders as a key management issue. (investor relations email magazine). In addition, Its basic policy is to pay a stable dividend while we are delivering semi-annual video messages seeking to return profits to shareholders in a across the Internet to communicate our flexible manner. management’s message. During fiscal 2012, the Company paid an interim Furthermore, we hold briefings for individual dividend of ¥30 per share and year-end dividend of investors and shareholders across the country. ¥30 per share, for a total annual dividend payment We regard these sessions not only as an for fiscal 2012 of ¥60 per share. opportunity to explain our corporate activities For fiscal 2013, the Company plans to pay an but also as an opportunity for listening directly annual dividend of ¥60 per share. to what investors and shareholders have to say. Investor Relations Website http://www.daiichisankyo.com/media_ investors/investor_relations/index.html
Individual Investor Website (In Japanese only) http://www.daiichisankyo.co.jp/ir/ individual/index.html
Briefing for individual investors
60 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 61 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Daiichi Sankyo hopes to Sankyofurther hopes to Daiichi strengthen SC-CMC Technology Meeting Overseas Town Hall Meeting The president held town hall meetings with with meetings hall town held president The ● ●
venues in fiscal 2013. fiscal in venues first SC-CMC Technology Meeting in December, December, in Meeting firstTechnology SC-CMC for employees. through poster sessions and presentations, presentations, poster sessions and through this interactive communication at various at interactive communication this Our Pharmaceutical Technology Division and the Pharmaceuticalthe and Division Our Technology challenges related to becoming a“Global Supply Chain Division collaborated in holding the the holding collaborated in Division Chain Supply 2012. Information on various domestic and cultivating an environment designed to generate generate to designed environment an cultivating cross-functional seamless cooperation. development and cooperation were shared he set forth the management strategies and strategiesmanagement and forth the set he international approaches to technology technology approaches to international European and U.S. Group companies, Group which at EuropeanU.S. and PharmaInnovator,” as well ashis expectations As a main focus for the 2012 R&D Forum, Forum, R&D 2012 the focus for main a As R&D Forum As well as sharing with ever y one of our We will continue to enhanceinteractive
● from various perspectives and deepened their year, which of fers employees engagedin R&D that will continue to support a workplace a support to continue will that where allemployees are able tocontribute. futuredirection company goals of the and Communication with Employees with Communication and employees through various kinds of in- of kinds various employees through and at all levels to participate and get to know company events, an internal por tal site and in- communication between management communication activitiesrole expected the and our of employees were encouraged to offeremployees encouraged ideas were for to one another. another. one opportunity officersfor Division, R&D the from at Daiichiat Sankyo, Asubio Pharma, Daiichi employees social importancethe our of Sank yoRD Novare, etc. an oppor tunity to share Our R&D Division holds an R&D Forum ever y Group, weintend tocommunicate the discussion, a poster presentation, symposium, symposium, presentation, poster a discussion, house English and Japanese newsletters.and English house mutual understanding. making R&D activities more proactive and more more proactiveactivities and more R&D making innovative, and theHead and employees of the management of the Company, and employees employees and Company, the of management in terms thatare easy tounderstand and lab tour, etc. The R&D Forum provides an information/know-how further and develop Employees various at relationships. business levels are selected to plan and organize panel R&D Division proactively discussed these ideas proactively ideas Division these discussed R&D Enhancement of Communication with Stakeholders
The Dialogue with CSR Experts We organized a “Dialogue with stakeholders” event to which we invited experts from various fields and our employees from the relevant fields. The purpose of this event was to understand and respond to the ever-changing varied demands of the society.
Contribution through business while tackling social issues. Mr. Eiichiro Adachi Counselor, Head of ESG Research Center, The Japan Research Institute, Limited
The understanding of CSR differs depending on the country or region, as it is based on the social context of each country/region. Furthermore, the stakeholders for corporations are also becoming diversified with the rapid globalization of businesses. The corporate sector is increasingly being expected to solve social issues that cannot be solved by the government alone. Under these circumstances, new approaches, such as changing the way of business or identifying latent customers’ needs in the context of solving social issues are becoming a new trend of CSR, in addition to an extension of conventional “contribution through main businesses”. Also, the keys to globalization are “Diversity and Inclusion*1”. Of course, the corporation must take into account the areas and regions where it conducts business. In addition, for issues such as labor and human rights, it is critical to consider the positive impact of diversity and inclusion.
To establish a win-win structure by building a new business model together with developing countries in accordance with their needs. Mr. Kenji Shibuya, MD, DrPH Professor and Chair, Department of Global Health Policy, Graduate School of Medicine, The University of Tokyo
Globalization of medicine is rapidly progressing, and the power of international organizations such as World Health Organization ( WHO) is relatively declining these days. To fill in the gap, the collaboration between public and private sectors is being facilitated. The large scale private sector and foundations are also becoming increasingly active. In the future, the global health*2 sector should collaboratively develop a new business model based on the needs of the developing countries, using local methods and resources, and establish a win-win structure. It is impor tant to develop a large strategy/business model as a part of the main business including supply chain, taking into consideration who plays what role from R&D to distribution. To get the latest information, various stakeholders need to gather together, and they need to participate directly in public health strategy discussions. In this way, they can understand the movement and lay the foundations for future business, thus, it is highly recommended.
*1 “Diversity and Inclusion” means a situation where diverse people interact and are valued and respected as equals. *2 Global health refers to the issues concerning health and health-care across borders.
62 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 63 ASCA Company, Company, ASCA Toyomasa Kaneda Supply Chain Planning Department CSR Department CSR Shigemochi Dobashi Chiharu Hashimoto Business Planning Department R&D Planning Department Katsuyuki Yogosawa Yogosawa Katsuyuki Koichi Akahane Koichi Honda Hiroshi KazunariShimizu Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Attendant Daiichi Sankyo Staffs: Sankyo Daiichi Attendant Vaccine Business Tsuyoshi Tanaka Yoshikazu Takano Yoshikazu Strategy Department General Affairs General & Corporate Strategy Department Strategy Corporate CSR Division CSR Procurement Department Procurement Human Resources Department Resources Human Head of Legal Affairs Legal of & Head Intellectual Property Department Intellectual Norimasa Kamura Norimasa Ryoichi WatanabeRyoichi Sato Hirohisa Hiroyuki Okusawa As for how to actually tackle this, we must examine the activities examine the and must we actually tackle to this, how for As With business globalization, supply chain is also diversifying and becoming becoming diversifying also and is chain supply globalization, business With I strongly recommend that you decide with a policy what you should do to to do should you what policy a with decide you that recommend strongly I area has been required. I understand understand I required. been has area *1 The issues of human rights are really very broad. Also, over the last few years, years, few last the over Also, very really broad. are rights human of issues The throughout the supply chain. chain. supply the throughout the company but also in the supply chain.” chain.” supply the in also but company the estimate potential risks as a preventive measure by, for instance, positively positively instance, for by, measure preventive a as risks potential estimate NGOs. including stakeholders the with communicating commitment to responsible business not only in our own companies, but also also but companies, own our in only not business responsible to commitment companies have had on the environment, on society and on the economy, economy, the on society and on environment, the on had have companies decisions of our own companies, , and demonstrate due diligence with regards to to regards with diligence due demonstrate and , companies, own our of decisions has been through the supply chain. Therefore, it is essential to implement the the implement to essential is it Therefore, chain. supply the through been has human rights have been much discussed as part of mainstream CSR. CSR. mainstream part of as discussed much been have rights human rights. human increasingly large and complex. Furthermore, the greatest impact that our our that impact greatest the Furthermore, complex. and large increasingly Executive Director, CSO Network Japan Network Japan CSO Director, Executive “Commitment to responsible business practice, not only within within only not practice, business responsible to “Commitment Ms. Kaori Kuroda Kaori Kuroda Ms.
(Thepositions, etc. are asof the timeof theevent date) Daiichi Sankyo Company, Head Office, B413 conference room conference B413 Office, Head Company, Sankyo Daiichi March 25, 2013 (Mon.)13:30 to16:30 Fur thermore, I would like you to express the actual environmental aspect of usage of electricity, steam and heat in the volume of greenhouse gas emission. gas greenhouse of volume the in heat and steam electricity, of usage *1 The scope paragraph with respect to the indirect emissions in the entire supply chain, except for the indirect emissions associated with associated emissions with indirect the for except chain, supply entire the in emissions indirect respectthe paragraph to scope with The *1 Attendees(Experts): Venue: Chief Executive, CPA, Sustainabilit y Accounting Co., Ltd. Counselor, Head of ESG Research Center, The Japan Research Institute, Limited Research Institute, Japan The Research Center, ESG of Head Counselor, Overview of the event event Overview the of Professor and Chair, Department of Global Health Policy, Graduate School of Graduate of School Policy, Department Health ProfessorGlobal of Chair, and Executive Network Director, CSO Japan Medicine, TheUniversity of Tokyo Mr. TakashiMr. Fukushima Mr. Kenji Shibuya,MD, DrPH Kuroda Kaori Ms. Mr. Eiichiro Mr. Adachi Date: To widenTo therange of totalingin thescope 3 the truenature of therequirement is toshow thedepth of yourperspective of the To implement consistent,thoroughly broad-minded implement and thought-out To the medicine and its degradation products, as well as your view as a professional a as view your as well as products, degradation its and medicine the supply destinations due to climate change; how reduce how far can supply anticipateddestinations you climatethe change; to due what and; plan, management medium-term the in index management a as etc. sales, Chief Executive, CPA, Sustainability Accounting Co., Ltd. of strategic risks and chances concerning the environment, such as impacts on your your on impacts as such environment, the concerning chances and risks strategic of environmentalburden in thesame target fiscal year when youset a targetlevel of concerning the environmental management in pharmaceutical industry. in management environmental the concerning environmental management that is linked to management indicators. management to linked is that management environmental kind of structure the environmental burden will be in, at the time when you declare to to declare you when time the at in, be will burden environmental the structure of kind nations. rising increase in sales your issue in practicing an approach. This includes; how well you recognize the probability recognize the you well how includes; This approach. practicing an in issue involved in pharmaceutical industr haveI y. a high expectation of your leadership Mr. TakashiMr. Fukushima Promoting Environmental Management The Daiichi Sankyo Group continues to promote environmental management to reduce the environmental burden in every business operation.
Environmental Management System
Recognizing that caring for the environment Global environmental management is one of its key social responsibilities, the promotion system Daiichi Sankyo Group not only complies with the law, but has also stipulated in the Daiichi Daiichi Sank yo’s Global Head of CSR oversees Sankyo Group Corporate Conduct Charter: “We the Group’s environmental management. In responsibly manage the environmental impact this system, environmental management is of our operations as environmental issues are implemented in a system of environmental common challenges for mankind and such management units established for each business concerns are integral to our corporate activities unit, such as the corporations and companies and our very survival.” The Group has also that control regions and businesses, with the formulated rules for conducting environmental Global Head of CSR managing all of these management and established its Basic environmental management units. In addition, the Environmental Management Policy based on officials of the environmental management units these rules. oversee the bases, for instance the offices that make up the environmental management units. ● Basic Environmental Management Policy For example, an environmental management unit made up of Daiichi Sankyo and the Group Safeguarding the environment is the bedrock companies in Japan was set up, with the head of of all Group operational management. We the Legal Affairs & CSR Division (current Member pursue environmental management that of the Board and Senior Executive Officer) of contributes to a sustainable society and Daiichi Sankyo Co., Ltd. taking responsibility enhances our good corporate citizenship. for this unit (serving as chief executive officer of environmental management). This head We focus on major environmental issues, officer advances environmental management such as countermeasures for climate change, by overseeing the environmental management effective usage of natural resources, proper classification (organization and site) established management of chemical substance, and on a per-office basis. In addition, office managers biodiversity consideration. We establish and take responsibility for these environmental operate an environmental management system management classifications and operate for the above issues and communicate environmental management systems through with stakeholders. ISO 14001 and other programs. Further, the Moreover, the Mid-term CSR Policy in Environmental Management Committee has the Group’s Second Mid-term Business been set up to discuss important issues related Management Plan specifies “reducing the to the environment, chaired by the chief executive environmental impact of all business activities” officer of environmental management. as an environmental issue to address. Daiichi Sankyo also pursues environmental Also, the Third Mid-term Business management in Europe, North America, Asia, Management Plan's CSR activity starting in Central and South America and India with fiscal 2013 is defined as “Responsible Business programs similar to those in Japan. Actions for a Sustainable Society.” We have established our Third Mid-term Environmental Management Policy on the basis of this concept.
64 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 65
2 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Results emission volume emission 2 emissions: 25.2% reduction compared to fiscal 2007 (49,601 t-CO (49,601 2007 fiscal to compared reduction 25.2% emissions: 2 environmental audit. No significant compliance significant violationscompliance No environmental audit. carr y out subject ex tractionbased onrisk and oppor tunity analysis dissemination of extensive environmental information, etc. information, extensive environmental of dissemination (reduced8.9t compared to actual emission of(reduced fiscal 2007) compared171.0t to actual emission of fiscal(increased 2007) 3.0t compared to actual emission(reduced of fiscal 21.0t compared 2007) to actual emission of fiscal 2007) 53.2%; Percentage in terms of costs: 54% costs: of terms in Percentage 53.2%; volume of fiscal 2007). Achieved mid-term target. mid-term Achieved 2007). fiscal of volume reduction compared to the actual emission of fiscal 2007). Achievedmid-term target CO Confirmed our compliance with law through self-assessment such as as self-assessment such through law with compliance our Confirmed 2007 (reduced 23.94 million paper use compared to the actual usage usage actual the to compared use paper million 23.94 (reduced 2007 Amount of office paper consumed: 26.1% reduction compared to fiscal fiscal to compared reduction 26.1% office consumed: paper of Amount Maintaining and strengthening relationships with stakeholders through stakeholders through with relationships strengthening and Maintaining Environmental Art ContestEnvironmental staffEnvironment members workshop awareness e-learningEnvironment Formulate and release basic objective and action guidelinesProceedin regards with internal to biodiversity company education in regards to preser vation of biodiversity Efforts to prevent air and water pollution water and air prevent Efforts to Percentage of designated items: items: designated Percentage of Zero emissions: Final disposal rate was 0.20%, 0.20%, was rate disposal Final emissions: Zero Investigate the relationship between our company group and biodiversity and and group company between our relationship the Investigate Implementing approaches based on the action guidelines action the on based approaches Implementing - Photographic images: 802 entries (171 domestic & 631 from overseas) from 631 & domestic (171 entries 802 images: Photographic - entries 627 poem): (satirical Senryu - 8 conducted: times of number Total - - Totalnumber of attendees: 270 - Average rate 13,631 of lectures: attendance attending people of number Total - at lectures:% 97.1 maintained less than level.1% Achieved mid-term target. 2007 fiscal to compared reduction 93.7% emissions: SOx - 2007 fiscal to compared reduction 83.0% emissions: NOx - 2007 fiscal increaseto compared 7.7% emissions: BOD - 2007 fiscal to compared reduction 47.7% emissions: COD - ● ● ● ● ● ● ● ● ● ● ● ● ● ●
Targets (Groupfor Fiscal companies 2017 in Japan) raising activities environmental and education courses emissions: 20% reduction compared to 2007 fiscal to compared reduction 20% emissions: fiscal 2012 improvement from 15% sales: net of unit basic per emissions 2 2 l e s s t h a n 1% ) 2 f i s c a l 2012 against such risks such against activities created in cooperation with our business par tners recognition and evaluation of environmental risks and the implementation of countermeasures of implementation the and risks environmental of evaluation and recognition private nonprofit private nonprofit organizations Office paper consumed per basic unit of net sales: 20% improvement from 2012 fiscal from improvement 20% sales: net of unit basic Office per consumed paper CO CO Water use per basic unit of net sales: 5% improvement from fiscal 2012 fiscal from improvement 5% sales: net of unit basic per use Water Thorough compliance with the law through self-assessment such as environmental audit, the the audit, environmental as self-assessment such through law the with compliance Thorough units basic and volume emission visualization of the through monitoring Thorough Strengthen communication and collaboration with business partners, regional communities, and and communities, regional partners, business with collaboration and communication Strengthen Amount of office paper consumed: 30% reduction compared to 2007 fiscal to compared reduction 30% office of consumed: paper Amount Maintenance of zero emissions (annual disposal rate: less than 1%) less than rate: disposal (annual emissions zero of Maintenance employees number improveof Maintain and the participate who environmental in Promote the recognition of supply chain's CO recognition Promote the supply chain's of PRTR substances discharged to air and water per basic unit of net sales: 5% improvement from from improvement 5% sales: net of unit basic per water and air to discharged substances PRTR guidelines action and principles the biodiversity-consciouson activities based business Promote conservation environment intensive and procurement environmentally-friendly material Promote biodiversity conservation to contribute measures which contribution social Promote awareness- ● ● ● ● ● ● ● ● ● ● ● ● ● ● ● Targets for Fiscal 2012 Fiscal for Targets emissions: emissions: (Group companies in Japan) 2 friendly office supplies collaboration resources pollution liabilities risks and Percentage of designated items: over 90%; 90%; over items: designated of Percentage 70% over costs: of terms in Percentage among allemployees andimprove and with regional and private nonprofit environmental education environmental collaboration with business partners business with collaboration organizations Online purchasing of environmentally environmentally of purchasing Online CO Strengthen communication and Assess and reduce environmental environmental reduce Assess and Amount of office paper consumed: office consumed: paper of Amount Maintain efforts to prevent air and water water and air prevent efforts to Maintain Maintain zero emissions zero Maintain Enhance environmental awareness awareness environmental Enhance Establish system for promotion and ecosystem-dependent use Properly 20%reduction compared to fiscal 2007 (Final disposal rate:* 20%reduction compared to fiscal 2007 ● ● ● ● ● ● ● ● ●
● 1 1 Policy Items Third Mid-term Environmental Mid-term Third Management Targets (Fiscal 2013-2017) Second Environmental Mid-term Management Targets Resultsand (FY2010-2012) in the target the in results. Promote the effective use of energy and reduce carbon dioxide emissions in all business operations to help warming global prevent Promote the 3Rs (reduce, reuse, recycle) to contribute to a through society recycling-based resource saving and waste reduction environmental reducing to Contribute risks through stringent efforts to compliance, environmental by abide pollution prevention and the proper substances chemical of management Promote business activities, which take into account biodiversity and ecosystem services, and green procurement to contribute to the society sustainable a of development continuous the Encourage environmental of improvements collaboration and communication with stakeholders as well as the system management environmental Promotion of Green Procurement Pollution prevention and reduction of risks environmental Promoting Environmental Environmental Promoting Communication Engagement in in Engagement Biodiversity Conservation Promote initiatives to warming* global prevent Effective use of resources and contribute to a society* recycling-based ● ● *1 In orderretain In to continuity the *1 medium term of the target evaluations, data the Kitasato of Daiichi Sankyo Vaccinebeenhasnot included *2Final disposalrate Final= disposal amount(waste disposedby landfill) / Total amount of waste(all waste generatedby business sites). Promoting Environmental Management
Environmental Communication
Environmental auditing The Daiichi Sankyo Group proactively promotes environmental communication with our stakeholders to The Group’s auditing system for environmental prevent and resolve environmental problems by sharing management is comprised of three complementary information and fostering stakeholder dialogue about the approaches that are implemented in accordance environment. In the rare event of an accident, the Group will with the situation in each environmental management carefully consider the possible impact on the surrounding classification (organization and site). The three community and make every effort to share information and approaches consist of internal audits implemented by exchange ideas with local residents around its plants and R&D environmental management classification, evaluations centers and conduct disaster prevention countermeasures by ISO audit organizations, and environmental audits in collaboration with them. In addition, we are continuously performed by the environmental management implementing environmental education for employees. department (CSR Department of Daiichi Sankyo). Environmental audits on waste management were ● Environmental Art Contest performed at the Group companies in Japan under a Environmental communication measures are carried three-year plan that began in fiscal 2008. Environmental out to improve employees’ environmental awareness. laws such as the Air Pollution Control Act, Water Every year in June, which is designated as “Environment Pollution Prevention Act and Waste Disposal and Public Month” by the Group, a contest is held for artwork that Cleansing Act have all been revised in recent years, so gives the viewer an impression of the environment. we have been planning and carr ying out environmental Artwork is solicited from Group employees and their audits with a broader scope and a focus on compliance families both in and outside of Japan. with environmental laws for three years beginning in We received a total 313 artworks for the fiscal 2011. In fiscal 2012, we carried out environmental photographic image category - 80 artworks domestically audits of eight environmental management and 233 artworks internationally. In addition, we also classifications: Daiichi Sankyo Propharma Akita Plant, received 211 poems for the Senryu (satirical poem) Onahama Plant, Tatebayashi Plant, Hiratsuka Plant, category domestically. We selected the grand prize/ Odawara Plant, Daiichi Sankyo Chemical Pharma prize winners and held the awards ceremony at each Hiratsuka Plant, Asubio Pharma, and Kitasato Daiichi regional company or group company. Sankyo Vaccine. It showed that the company was in compliance and there was no improvement guidance ● Raising awareness of global warming associated with major environmental risks. The three months from December to February are designated as a period for raising awareness ISO 14001 Certification progress of global warming. Every year, the award-winning artwork, which gives the viewer a sense of the The Daiichi Sankyo Group is working proactively to environment, is used to produce posters. The acquire ISO 14001 certification in the recognition that posters are then displayed at the offices of Group its plants have a substantial environmental impact. companies in Japan and around the world.
● List of ISO 1400 certified plants (As of the end of March 2013) Company Site Akita Plant Daiichi Sankyo Propharma Co., Ltd. *1 Includes Daiichi Sankyo Research Onahama Plant Center Tatebayashi Plant*1 *2 Includes Daiichi Sankyo Research Center and Daiichi Sankyo Hiratsuka Plant*2 Happiness Co., Ltd. *3 Includes Daiichi Sankyo Logistics Co., Takatsuki Plant*3 Ltd. Odawara Plant
Daiichi Sankyo Hiratsuka Office and Plant Chemical Pharma Co., Ltd. Odawara Plant Daiichi Sank yo Brasil Farmacêutica Alphaville Plant Toansa Plant Dewas Plant Ranbaxy Laboratories Limited Mohali Plant Malanpur Plant Paonta Sahib Plant
66 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 67 7,800 5,100 174,200 from 2 Sales vehicles FY2013 (Target) 187,100 7 1 /kWh. 2 152,052 7,845 5,0 FY2012 164,914 Office buildings 8,579 146,080 4,904 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi emissions 2 goal for fiscal(172,400 2012 FY2011 2 159,563 9,578 5,678 196,408 Plants and R&D centers and Plants FY2007 211,664 ) reduction targets achievements and electrical power in Japan at 0.368 kg-CO 0 2 2 For the entire group's goal, while showing Including the overseasIncluding the branches entirethe in (group in Japan) Breakdown of CO of Breakdown t-CO 50,000 ( 250,000 200,000 150,000 100,000 Note: The Group calculated the emission factor emission CO for calculated the Group The Note:
● We reached our CO our reached We
will activelyplan todecrease the increases in more any curbing work towards emissions and tons, was a 10.2% increase from fiscal 2011 2011 fiscal from increase 10.2% a was tons, a consistent improvement in the basic unit of of unit basic the in improvement consistent a of our operations. operations. our of we proceeds), of (amount amounts emission amounts. emission group, the results for fiscal 2012, 521,550 metric metric 521,550 results for fiscal 2012, the group, data. increasedata. This was expected our to due data, there was a 3.3% increase. increase. 3.3% a was there data, CO increased production, research and expansion metric tons), but compared to the fiscal 2011 2011 fiscal the to compared but tons), metric 356,636 164,914 Outside Japan Outside 521,550 FY2012 66,881 volume Increase in in Increase production Japan − 6,15 6 initiatives in all ofits business Emission reduction 2 4,579 decrease in FY2012 Expansion of Expansion scope in the data the in scope Major factors for increase/ collection(overseas) −16,987 Streamlining of 313,670 productionlines 159,563 FY2011 473,233 byemissions factors for increase/ 2 ) 0 2 Additionally, we believe it is necessary is it believe for we Additionally, Furthermore, assuming frequent the decrease (entire group) (entire decrease CO t-CO ( The Daiichi Sankyo Group views the fight against against fight the views Group Sankyo Daiichi The
●
term, there factors couldhave animpact on our theDaiichi Sankyo Group topay attention the risks to and opportunities by induced brought events natural and regulations the about by the challenge of climate change. As such, as as such, As change. climate of challenge the activities global curb warming.help to stated in the Second Mid-term Environmental occurrence of abnormal weather by the climate climate the by weather abnormal occurrence of change and the influence on the health of people climate change, and how these elements will will elements these how and change, climate global warming asessential to addressing oriented companies. oriented due to thechange of disease structure, the 100,000 200,000 300,000 400,000 500,000 600,000 business financially, which could become the the become could which financially, business potential for either costincreases or growth. revenue review of these is necessary is review these of life-science for influence our business strategy. In the long long the In strategy. business influence our is striving to reduce CO reduce to striving is Management Policy, the Daiichi Sankyo Daiichi Group the Management Policy, Initiatives to Prevent Global Warming Prevent Global to Initiatives Promoting Environmental Management
Using renewable energy Global Warming Subcommittee Meeting
A solar energy generation facility is being The Global Warming Subcommittee Meeting is installed in the Shinagawa R&D Center upon held to visit companies that have cutting-edge the construction of a new research building. In environmental programs and share information parallel, a solar energy generation facility and on energy conservation and the fight against solar panels are being installed in our learning global warming. center (NEXUS HAYAMA) to promote the use of In fiscal 2012, the presentation and renewable energy. discussion on global warming countermeasures The Pfaf fenhofen Plant of Daiichi Sank yo of each of our operations were held, with Europe in Germany uses thermal heat supplied participation by 32 members in charge of by a nearby woodfueled biomass power plant. facilities and energy management. These
This reduces annual CO2 emissions by 2,000 members also attended a seminar on energy metric tons. management measures and cases by Takasago In addition, every year, the Shinagawa R&D Thermal Engineering Services Co., Ltd., and Center in Japan purchases 1,000,000 kWh of visited Omika Division of Hitachi Ltd. Members green power generated in a bagasse biomass then toured our Omika facility, which acquired power plant. ISO50001*1 cer tification and smar t grid related systems, to improve understanding of ● Breakdown of energy use (group overall) energy efficiency. Kerosene Heavy oil 38(0.4%) 419(4.9%) Steam Diesel oil 28(0.3%) 547(6.3%) LPG 4(0.0%) Gasoline 564(6.5%)
Total LNG 8,616,000GJ Electricity 766(8.9%) 4,678(54.3%)
City gas 1,571(18. 2%) Voice The Kasai R&D Center is certified as the “Certified Top-Level Facility in Measures Against Global Warming.”
Katsumi Hashino Facility Management Group, R&D Administration and Support Department, R&D Division Daiichi Sankyo Co., Ltd.
In Tok yo, we are engaged in "Reducing obligation for total emission of greenhouse gas and Emissions Trading" for our large-scale business facilities. This policy requires emission reduction of CO2 during the 5 years (2010-2014: the first plan period), and if the requirement cannot be accomplished, the shortfall must be purchased through Emissions Trading of CO2. On the other hand, the reducing obligation ratio will be lowered for those business facilities with their superior facilitation level of global warming countermeasure. In May 2011, the Kasai R&D Center was cer tified as the "Cer tified Top-Level Facility in Measures Against Global Warming," in recognition of its past activities. The number of certified business facilities is only 6% of approximately 1,300 subject business facilities and the center is the only certified pharmaceutical or research facility in Japan. However, acquiring the certification is not our goal. It is necessary to pursue a long-term engagement for the first plan period until 2014 as well as the second plan period (2015-2019). Continuously, we will actively facilitate global warming countermeasure for years to come.
*1 International Standard, issued by International Organization for Standardization (ISO) for the purpose to seek a continuous improvement of energy performance, energy efficiency, and energy saving.
68 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 69 Wastewater 13,535 FY2013 (Target) 13,284 13,284 FY2012 13,535 Water used Water , up 3.5% compared 3.5% up , 3 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi 13,708 13,708 FY2011 13,327 ,u p1.6 % c o m p a r e d t o f i s c a l 2 011. 3 14,21114,211 FY2007 15,298 ) 3 0 The volume of water used by the group We have set a target of reducing water water reducing of target a set have We Volume of water used and wastewater (Group in Japan) in wastewater(Group and used waterof Volume 5,000 20,000 15,000 10,000 Appropriate use of Appropriate water resourcesof use Also, the volumeof waterused by thegroup ● Wateris an important resource which is
that should be used sustainably. challenges risks and understanding the to In addition the volume of water used and wastewater. and used water of volume the t o f i s c a l 2 0 11. where our offices are located, we carry offices we our out where located, are and we recognize that it is an ecosystem service service ecosystem an is it that recognize we and status the and usage water associated with with reuse of promotion efficientand usage, amounts used. and will promote appropriate management promote of will and companies including overseas offices fiscal in essential for the production of pharmaceuticals, pharmaceuticals, of production essential the for regions countries and resourceswater of in countermeasures, reasonable including companies in Japan fiscal 2012 totaled 2012 to t a le d 16,19 9,0 0 0 m purification reduction the and equipment, in usage at plants and research centersprevious below the fiscal year’s levels in fiscal 2012 as well, 13,535,000 m 13,535,000 (1,000m ) 3 2 1 0 ％ ( 0.20 83 FY2013 (Target) Target final final Target disposal rate disposal 0.40 158 FY2012 0.93 rate Final disposal 365 FY2011 1.28 558 FY2007 volume Final disposal At our plants and research centers, the Group Although we continued to promote our resource our promote to continued we Although The total amountof incurred waste and Each office emphasizes the thorough officeEach thorough emphasizes the Final disposal volume and rate (Group in Japan) ) 0 t ( The Daiichi Sankyo Group defines zero emissions emissions defines Sankyozero Group Daiichi The ●
Whenever possible, the Group chooses waste waste chooses Group the possible, Whenever
for the Groupin Japan and has maintained zero
the streamliningthe resourcesof manufacturing used in Waste reduction targets and total amount of disposal due to the downtime of to the fact that thereare cases whereresource waste material volume, and resource recycling. recycling. resource and volume, material waste finaldisposal rate of 0.40% and zero emission. Effective Resources of Use schedule in fiscal 2008. and packaging processes, comprehensive comprehensive processes, packaging and total of reduction materials, waste separation of emissions since attaining the target a year ahead of of ahead year a target the attaining since emissions as final disposal representing zero achieving made Group The waste. of amount less than of1% total and ear thquake in Japan. This increased the efficiently resources. use Consequently, is it emissions by fiscal 2009 one of the goals in its First First its in goals the of one 2009 fiscal by emissions separation of trash and promotes officepaper. of sides usage of both decreased from 60.3% to 48.1%. This is attributable is This 48.1%. to decreased 60.3% from disposal firms that recycle thoroughly. that firms disposal disposed amount in fiscal 2012 decreased by achievements believes it is important to reduce waste and more resourcepursuing savingsefforts through as such recycling wasimpossible due to theimpact nuclear powerof plant disaster the following tsunamithe recycling policy in fiscal the2012, recycling rate incinerator facilities of the Company. Company. the of facilities incinerator respectively. As a result, the Group maintained the the maintained Group the result, a As respectively. Mid-term Environmental Management Targets Management Targets Environmental Mid-term 16 tons16 and 207 tons compared to fiscal 2011, 200 400 600 Promoting Environmental Management
Reduction of Environmental Risks
Evaluation for the environmental indicators.*1 As a result of research into mitigating impact of pharmaceutical products environmental impact, we succeeded in reducing the environmental impact of the final manufacturing process In the U.S. and EU, authorities mandate the provision (industrialized manufacturing method) to about 10% of the of data on environmental impact assessments impact when this research began. (environmental risk evaluation) based on guidelines when In fiscal 2011, we developed a manufacturing process applying for approval of new pharmaceutical products. which includes a very effective method for absorbing NOx The Daiichi Sankyo Group carries out environmental at the time of development, and in 2012, we began running impact assessments of its drugs based on guidelines in the the equipment introduced by this method. The result was relevant country and addresses any issues appropriately. that we were able to reduce the amount of NOx vented The Daiichi Sankyo Group values the fact that into the atmosphere and reach our disposal percentage society is star ting to notice that medical products and goal. We were also able to realize the manufacturing of their byproducts are being detected in rivers and other products that have a low-impact on the environment. natural environments. However, scientific knowledge is not yet advanced enough to determine whether or Preventing air and water pollution not the levels are high enough to negatively affect the ecosystem or human health. Therefore, we will continue To prevent air and water pollution, the Daiichi Sankyo to communicate with the government, businesses and Group has established voluntary control standards research organizations to collect as much information as that are stricter than legal requirements and conducts we can to be able to discuss and develop a better method proper monitoring and measurement at each facility for risk evaluation and risk management. in Japan. The Group also regularly monitors Group Also, during fiscal 2012 environmental affairs company plants outside Japan, including at Daiichi administrators' study group, one of the themes was the Sankyo Pharmaceutical (Beijing), Daiichi Sankyo negative effects of medical products on the environment. Pharmaceutical (Shanghai) and Daiichi Sankyo While explaining the background of the problems of Europe GmbH in Germany and Daiichi Sank yo Brasil environmental risk of medical products in connected Farmacêutica to ensure compliance with the laws and scholarly reports and the situation of the media, we shared regulations of each country and region. the information concerning such things as the direction of the rules governing the management of industrial waste ● SOx emissions ● NOx emissions (Group in Japan) (Group in Japan) and its ef fect on the ecosystems both home and abroad ( t ) ( t ) (guidelines etc.), and the reaction of organisms on water 10 9.5 250 tested using the Whole Ef fluent Toxicity method 206 8 200 ( WET method). 6 150 Environmental impact assessment of 4 3.6 100 the manufacturing process 46 2 50 43 35 0.9 Since the manufacturing process for pharmaceutical 0.6 0 0 products is regulated by Japan’s Pharmaceutical FY2007 FY2010 FY2011 FY2012 FY2007 FY2010 FY2011 FY2012 Affairs Law, changing the manufacturing process once manufacturing has started requires considerable ● BOD emissions ● COD emissions time and effort. Accordingly, it is important to consider (Group in Japan) (Group in Japan) ( t ) ( t ) the manufacturing process from a wide range of 50 49 50 44 perspectives from the research stage, and when 42 39 40 evaluating and selecting the manufacturing process, 40 40 32 the environmental impact must also be considered, 30 30 not simply quality and cost. 22 23 The Daiichi Sankyo Group strives to reduce 20 20 environmental impact by evaluating and taking 10 10 into account the environmental impact of the manufacturing process using its own evaluation 0 0 FY2007 FY2010 FY2011 FY2012 FY2007 FY2010 FY2011 FY2012 *1 Solvents and reagents are assessed on the quantitative value, based on how they rate in terms of safety, toxicity, operating conditions, solvent collecting method, and liquid waste disposal method.
70 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 71 Risk Environmentalimpact Risk Contamination Climate changeClimate substances into soil substancesinto External diffusion of External diffusion of Emission ofEmission chemical ofEmission chemical ofEmission chemical substances into water into substances living modified organisms modified living living modified organisms modified living Disturbance of ecosystem Disturbance substances atmosphereinto Deteriorationlosshabitatand of Theintroductionspecies alien of The depletion of biological resourcesbiological The ofdepletion The deterioration and losses of habitats Environmentally friendlydesign impact Water assessment Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Environmental Environmental Use ofbiological resources modified organisms modified Energy resources External diffusionliving of impact
mitigate Activities to environmental environmental Collaboration, communication Genetic Genetic resources design friendly friendly Furthermore, with a theme of biodiversity of theme a with Furthermore, recycling R&D and and R&D Environmentally Environmentally the property the business of facility Conservation rarefor species plants of Forest windbreak/sand for preventionwithin Use Disposal, Disposal, Use manufacturing
Tatebayashi plant where the plant naturally grows. naturally plant where the plant Tatebayashi
the silver orchid, we have prohibited entry into a a entry into prohibited have we orchid, silver the forest was originally constructed by tree planting, as critically endangered TypeinII the Japanese and visited business business facilities visited of and facilitate importantto role an play administrators who conservation in the company newsletter. newsletter. company the conservation in conservation, also carried we education group a out environmental for company environmentally-advanced office. business each management at environmental occupied by over 90% of greeneryoccupied of overby 90% area. The greening with the formation of ecological system. part of the propertySankyopart Propharma the of Daiichi at biodiversityconser vation specialposting a feature article biodiversityfor and its approach through in the lush greenery environment surrounded greenery surrounded environment lush the in forestwindbreak/sand for by and prevention ● ● but it now contributes significantly to the regional regional the significantly contributes to now it but Ministry of the Environment’s Red Data Book) and Book) Data and Red Environment’s Ministry the of Daiichi Sankyo’s Propharma Akita factorySankyo’s located Daiichi is For conser ving the golden orchid(designated Microorganisms offsets 2 impact mitigate Group Daiichi Sankyo CO Activities to environmental environmental organisms raw Experimental and materials transport Energy Procurementof Salesactivities management resources 1 Consideration forbiodiversity (environmental conservation activities riskand response) Water CSR procurement CSR ABS* design friendly friendly Land (site of Environmentally Environmentally operations) Use of land ofUse stakeholders ” below). modifications Wood Affiliations with 1 (paper) impact mitigate (including Activities to Collaboration, communication environmental environmental Raw materials Raw naturalmedicine) space NGOs activities In the Third Mid-term Environmental Community, Biodiversity preservation conservation On-site green Environmental Opportunity friendlydesign understanding among our employeesunderstanding our among Improvement of awarenessImprovement of of promotion and Map of corporate Map activitiesbiodiversity and Environmentally Conservation and Sustainable Use of Biodiversity (JBIB). of Use Sustainable Conservation and
*1 Access to genetic resources and benefitresources sharingAccess genetic and to *1 The Group established the Basic Biodiversity Basic established the Group The The Group’s Basic Environmental Management Management Environmental Basic Group’s The
●
the relationship between its business activities business between its relationship the *1 Prepared with reference to the “Map of Corporateof Prepared reference “Map for with Initiative Activities Biodiversity” Business the to Japan *1 and the developed by sustainable society.” sustainable activities biodiversity* and and biodiversity and identifiedanalysis issues of theGroup’s risks through andopportunities an comply with the Car assessedGroup tagenathe addition, In Japan. outside Protocol both in and activities must take biodiversity into account. account. into biodiversity take must activities Group Group surveyedinitiatives its biodiversity, on the (Pleaserefer to thediagram “Map of corporate use ofnatural resources, and status of ef for ts to biodiversity and ecosystem services and green green and services ecosystem and biodiversity of development the to contribute to procurement understanding of how the group considers group the how of understanding policies. Moreover, when this was established, the the established, was this when Moreover, policies. “Pursue business activities that take into account ● Management Policy, we have stated as follows: stated have follows: as we Management Policy, Management Policy stipulate that its business business its that stipulate Policy Management Principles and Action Guidelines based on these Policy and the Second Mid-term Environmental In fiscal 2012, we sought to improve employees' employees' improve to sought we 2012, fiscal In Initiatives BiodiversityInitiatives for Conservation Broaden the Opportunities of Access to Medical Services We regard expanding access to medicine an international social responsiblity, as an important mission, and we intend to approach this task from the perspective of three points of view.
Mission as a Pharmaceutical Company and Our Devotion to World’s Social Agenda
As a pharmaceutical company expanding In developing countries, there are still its business on a global scale, we seek not a number of regions that they do not have only to offer various medical services that adequate access to medical services including satisfy a range of patients’ needs, but also medicine; thus, under MDGs, the improvement to contribute, more generally, to addressing of healthcare in such regions has been the first the world’s medical issues. There exist issues priority as the challenge of global health beyond related to preventive medicine and treatment borders. In Japan, Japan Pharmaceutical of rare diseases in developed countries, and in manufacturers Association (JPMA) sort out emerging countries and developing countries in their priorities in contributing to Global Health in Africa and Asia, there are many medical issues Nov, 2012 and declared contribution to improve that need to be solved. healthcare of developing countries. Under the “Millennium Development Goals The Daiichi Sank yo Group is working on (MDGs)” advocated by the United Nations, expansion of medical access from perspective there are eight goals which were set with a of three points of view shown below. target achievement date of 2015. These include eradication of hunger and poverty, three of ● Perspective of three points of view on the which are healthcare related goals such as expansion of access to medical services Goal 4 (reduce child mortality), Goal 5 (improve maternal health) and Goal 6 (combat HIV/AIDS, Contribution to society through malaria and other diseases). However, the development of new medicines current situation in South Asia, South America, Contribution to society through provision of and all areas of Africa south of Sahara Deser t is low-priced medicines that it is doubtful that Goal 4 and 5 are achieved. Contribution to capability development in Also, for the Goal 8: Develop a global partnership relation to the access to medical services for development, they seek to obtain necessary pharmaceutical products at low price for people in developing countries by cooperating with pharmaceutical companies.
● The United Nations Millennium Development Goals (MDGs)
G O A L 1: Eradicate Extreme Poverty & Hunger GOAL 2: Achieve Universal Primary Education GOAL 3: Promote Gender Equality and Empower Women
GOAL 4: Reduce Child Mor tality GOAL 5: Improve Maternal Health GOAL 6: Combat HIV/AIDS, Malaria and Other Diseases GOAL 7: Ensure Environmental Sustainability
GOAL 8: Develop a Global Partnership for Development
72 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 73 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Daiichi Sankyo Co., Ltd. will continuemake will to Ltd. Daiichi SankyoCo., Treatment of rare rare diseases of Treatment
vaccine (DPT-IPV for Diphtheria, Pertussis, Tetanus, Tetanus, Pertussis, Diphtheria, for (DPT-IPV vaccine ● through promotion of novel vaccinethe effective developmentuse of openinnovations. and with several companies including Innovation Innovation several with including companies acid nucleic of development undertake the will dystrophy by muscular Duchenne treatment for segment novel influenza vaccine are made respectively respectively made are vaccine influenza novel segment and acutePoliomyelitis), and so on,in cooperation with application for manufacturing and selling in domestic vaccines innovative and convenient effective, safe, effective use of partnershipscombination vaccines.andFurthermore, create will to we develop domestic and foreign manufacturers. Among which, manufacturers. foreign which, Among and domestic conducting clinical and non-clinical studies. non-clinical and clinical conducting novel influenza quadruplevaccine, and combination the and vaccine combination quadruple the market in Februar y and June in 2013. Network Corporation of Japan. This organization organization This Network Japan. Corporation of DaiichiSank yohelped to establishDisease Treatment the“Orphan Institute” as a jointinvestment In order to focus on the treatment of rare diseases, diseases, rare of treatment the on focus to order In
We are currently proceeding with the the with proceeding currently are We Since I discovered this treatment about 20 years ago, hadI been frustrated with how For that purpose, the reform to raise awareness of the importance of orphan drug development in Japan as a whole nation is is nation whole a as Japan in development drug importanceorphan of awareness raise the of reform to the purpose, that For Approaches to preventive care preventive to Approaches VaccineLtd.Co., We are aiming toimprove the As we have been involved in the study of muscular dystrophy for many years, we have have we years, many dystrophy for muscular of study the in involved been have we As
●
various innovative medications such as as medications such innovative various
With a new business model, we aim to deliver new drugs to patients drugs to who new deliver to aim we model, business new a With wanted to change the situation where there is no drug for it, and the only thing that that thing only the and it, for drug no is there where situation the change to wanted parentsthe watch it to theirgraduallycan do own child her abilityor lose his I walk. to that, in collaboration in that, industry,tackle with government, to for us time is issues schools, it surrounding rare diseases, including forus toquickly switch gears and create a specificdevelopment process for an orphan seen many patients and their family members suffer from the disease. I have always have I sufferdisease. members family the their from and patients many seen seasonal influenza vaccine, cell culture-based culture-based cell influenza seasonalvaccine, Efforts to Broaden the Opportunities of Access to Medical Services Medical to Access of Opportunities Efforts the Broaden to available for them. justI couldn't wait for thatday tocome. social circumstances in which front-line vaccines front-line which circumstances in social vaccine eradicate to and utilized, effectively are couldn't make it happen. I sincerely hope that the new company established by Daiichi Daiichi by established company new the that hope sincerely I happen. it make couldn't and stable supply of vaccines which meet public public meet vaccinesof stable supply which and anti-infective agents and hypertension anti-infective medication and agents nations rising including globally provided them and Sankyo will expedite the development of a new drug, and patients' condition will soon soon will condition patients' and drug, new a of development the expedite Sankyo will development of intradermal-administration-type intradermal-administration-type of development suffer fromrare diseases as quickly aspossible. companies do. Our group has newly group Our companies developed do. demand, throughcooperation withKitasato drug with our authority.Having a chance to meet and listen directly to patients may give development of new medicinesdevelopment new of Contribution to society to through Contribution have been longing that someday the conversation that I have with patients, which was was which patients, with have I conversation that the someday that longing been have usually centered aroundhow things would get worse, will be full of hope with a new drug required. For patients with the disease, it is not a "rare disease", but it is a disease that desperately needs a drug. I strongly feel feel strongly I drug. a needs desperately that disease a is it but disease", "rare a not is it disease, the with patients For required. research and development budget, approval and licensing system for new drugs, and drug price system in practice. us some concrete ideas. Once this project is successfully completed, this business business this completed, successfully is project this Once ideas. concrete some us model can be used as space. disease rare a model the in development drug for momentum of success, and I am in great hope that it will create a littleprogress wehad made. Weknew that this treatment would work;however, we just drug. new development the of the proceeding with is issue pressing Our improved. be Department of Medical Rehabilitation, Professor, Kobegakuin University Kobegakuin Professor, Rehabilitation, Medical of Department large patient populations such as anti-hypertensive and diabetes drugs, it is essential essential is it drugs, diabetes anti-hypertensive as and such populations patient large preventable diseases (VPD). preventive care environment in Japan, to create create to Japan, in environment care preventive utilizing the global reach of Ranbaxy reach of global Laboratories.the utilizing new medicines” is exactly pharmaceutical is what medicines” new “Contribution to society through development of of development society through to “Contribution Instead of applying the same drug development process we use for drugs that target target that drugs for use process we development drug same the applying of Instead Daiichi Sankyo Vaccine Co., Ltd. and Japan Japan and Ltd. Co., Vaccine Sankyo Daiichi Daiichi Sank yo Co.,Ltd. is promoting the creation
Masafumi Matsuo, MD, PhD Voice Broaden the Opportunities of Access to Medical Services
● The Expansion of the Novel Malaria Drug ● Toward suppressing infectious diseases in “Synriam” to Africa developing countries Malaria remains as a serious problem even Daiichi Sank yo has par ticipated in the today. According to the estimation in 2011, establishment of the Global Health Innovative approximately 216 million people across the Technology Fund (GHIT Fund*1), which aims to globe were infected with malaria, and the disease promote the research and development of new claimed the lives of about 650,000 people. medicines, vaccines, and diagnostics in Japan Ranbaxy launched India’s first new drug, Synriam, to fight infectious diseases in the developing for the treatment of falciparum malaria in April, world. It is estimated that more than 1 billion 2012. This is the first novel drug indigenously of the world’s poorest of the poor suffer from developed and commercialized by an Indian HIV/AIDS, malaria, tuberculosis, and neglected corporation. In order to make the drug available tropical diseases (NTDs). To eliminate these to as many patients as possible, we have diseases, highly effective/low-cost medicines, suppressed the price of Synriam to just about vaccines, and diagnostics are needed. The GHIT one-third the level of existing drugs. We are also Fund is the first public-private partnership of its working to make this novel treatment available kind in Japan to contribute to global health. The in Africa and Southeast Asia, regions with high establishment of the GHIT Fund is supported numbers of malaria patients, and will make every by a consortium of Japanese pharmaceutical effort to eliminate malaria from the world. companies including Daiichi Sankyo, the Bill & Melinda Gates Foundation and the Government of Japan.
Contribution to society through provision of low-priced medicines
According to the estimation in 2008, it is said that about 20% of the world’s population, 1.3 billion people to be precise, is living under $1.25/ day. And 3/4 of such people, 1 billion people, are in South Asia and African regions south of Sahara Desert*2. Ranbaxy is providing more than 450,000 people from more than 90 countries, including those areas, high quality anti-HIV/AIDS agents at low-cost by collaborating with UNICEF and Doctors Without Borders.
Synrium was the first new drug developed by an Indian corporation, and also received the Golden Peacock Award in 2012.
*1 GHIT Fund Global Health Innovative Technology Fund. This organization promotes the collaboration among research institut es inside and outside Japan and the development of new medicines by granting subsidies, based on the partnerships with the Japanese government, Japanese pharmaceutical companies, Bill & Melinda Gates Foundation, and the United Nations Develop ment Program. *2 Data Source: WHO "World Health Statistics 2012"
74 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 75 317 194 2,446 Tanzania 1 59 2,506 10,367* Cameroon 557 490 4,814 India Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi In October we2012, held a joint briefing clinics serviceclinics Offering healthcare of mobile the field Fiscal 2012 achievements Fiscal 2012 The number of infant vaccination takers during maternal and and maternal during takers vaccination infant of number The child health week. health child
Number of pre-natal checkups of Number (people) Number of mobile healthcare field clinics (times) Number of infants receiving (people) vaccinations preventative
● ● takes an important role in these activities, and and activities, these in important role takes an to the regions where medical infrastructure, infrastructure, medical where regions the to to reduce infant death rates, improve the health of *1 session for such activities in India, joined the joined India, activities in such session for Accredited workers (the social association of andlocal communitiesin order to contribute diseases. other and malaria, HIV/AIDS, of spread Social Health Activist, or ASHA), which ASHA), or Activist, Health Social staff participation the of in expanded the operating mobile healthcare field clinics in 2011 2011 in healthcare clinics field mobile operating governments, local the NGOs, with cooperating expectant and nursing mothers, and prevent the doctors and transpor tation tohospitals are allin insufficient . supply local activities. We aim to enrich our participationlocal enrich activities. our to aim We these typesin activities orderof in future, for the In India, Cameroon and Tanzania, we have been been have we Tanzania, and Cameroon India, In from March, 2003 2003 March, from 1 ” from 2006 to 2010, POLYVAC acquired ability the to 2010, from2006 to ” 2
Collaboration with companies creates a great value and we canlearn somuch, Technical aid for manufacturing for technologyaid Technical for MR forvaccine MR This is a project that Japanese Government implemented with the cooperation of Research Center for Biologicals of The Kitas cooperationThe Research of Biologicals projectthe of Center for with Japanese a Governmentimplemented that is This atoInstitute, the forerunner of Kitasato Daiichi Sankyo Co., Ltd. Center for Research and Production of Vaccines and Biologicals in Vietnam in Biologicals Center Research for Production of Vaccines and and
Vietnamese children, and enough measles vaccine for about 9 million people has has people million 9 about measles for vaccine enough and Vietnamese children, As a person in charge of the domestic vaccine production project in Vietnam, I have have I Vietnam, project in production vaccine domestic the of charge in person a As Vietnam. In developing countries, there is a high demand for combination vaccines, so so vaccines, combination for demand high a is there countries, developing In Vietnam.
●
vaccine of measles and rubella which will be domestically produced for the first time in in first time the for domestically produced be will which rubella measles and of vaccine technology technology transfer project* We have a high expectation for your contribution to global health factors, such as insufficient public healthcare insufficient as such public factors, the supply of vaccines since the infection rate rate infection the vaccines since of supply the for rubella vaccine in order to contribute to the the to contribute to order in vaccine rubella for to March, 2010. Following this, Kitasato Daiichi Kitasato Daiichi this, Following 2010. March, to we expect that impact. global huge a organizing also but Asia on impact an have only not will a high-quality stable vaccine provision system in Vietnam people. many vaccines available for and products medical in development technology transfer project have started in order to construct a production system of combined combined of system production construct a to order transfer started project have in Japan International Cooperation International AgencyJapan *2 *1 alreadybeen provided to thecountry. It is greata result that theyacquired world-class such as new technology, know-how, and business-oriented information. We have a a have We information. business-oriented and know-how, technology, new as such Since May 2013, new rubella vaccine production and a combination technology combination a and production vaccine rubella new 2013, May Since domestically produce the full amount of vaccine required for routine vaccination for for vaccination routine for required vaccine of amount full the domestically produce system medical and infrastructure, insufficient aides utilizing manufacturing the technology and innovative technologyand development of rubella of significantly is Kitasato high. Daiichi establishment of MR vaccine production system system production vaccine MR establishment of Sankyo Vaccine has also provided technical technical provided also has Vaccine Sankyo Saeda Makimoto Sankyo Vaccine has provided technical aids to to aids technical provided Sankyo has Vaccine domestic manufacturing system for Contribution to capability development in in development capability to Contribution high quality high technology transferredKitasato from SankyoDaiichi VaccineCorporation. long been in collaboration with POLYVAC In the “measles vaccine production base base production vaccine “measles the In POLYVAC with collaboration in been long high expectation for your continued contribution to globalhealth as well asinnovative Director, Health Division 3, Health Group 2, Human Development Depar tment numbers of people working onmanufacturing medical product and quality preventingcontrol and peoplepover from ty, accessinghealthcare services. measles-rubella vaccine (MR vaccine) to stabilize stabilize to vaccine) (MR vaccine measles-rubella in Vietnam, to suppor t a decrease rubella. measles and of rate in the infection “The Strengthening Capacity “The Strengthening Measles for Vaccine relation to theaccess tomedical services Production” POLYVAC*of In developing countries, there are many many are there countries, developing In
In Vietnam, there is an urgent need to establish a Voice Social Contribution Activities With regard to the challenges faced by local communities, as a good corporate citizen, we will promote social contribution activities in cooperation with various stakeholders.
Becoming a Better Activities in Japan Corporate Citizen Supporting coastal forest Daiichi Sankyo social contribution activities restoration project provide people with hope through contributions to life and science. Our policies encourage We are supporting the Coastal Forest employee volunteerism and engagement in Restoration Project (Natori city, Miyagi) as a collaborative programs, and foster the shift part of reconstruction support efforts following from mere funding to par ticipating in wor thwhile the Great East Japan Earthquake. Due to the programs. The Group formulated Basic Policies Tsunami, the coastal forest along the coast of on Group Social Contribution Activities, which Tohoku area was flattened. The coastal forest guide initiatives worldwide that contribute had played an impor tant role in preser ving the to the development of science and research environment as a disaster-prevention forest, (medical and pharmaceutical ), initiatives related with functions such as sand prevention, storm to human life and the will to live, and initiatives protection, protection against the tide, and related to natural life, such as conservation of reduction of the force of Tsunami. the environment. Coastal Forest Restoration Project is aimed We consider the activities to promote social at the restoration of the lost coastal forest contribution as an investment in society, and and contributes to revitalization of the area’s we will continue to identify social issues and economic activities through a program in which challenges on which we should focus. As for the affected people are assigned to take care of approach, we emphasize collaboration with nurser y trees. In 2012, we par ticipated in opinion wide range of stakeholders, such as NPO/ exchange meetings and executed economical NGO, volunteer groups of the local community, support. Going forward, we are planning to government, and public sectors. In addition, implement long-term support to the project by we are putting our efforts into improving finding employee volunteers for transplanting the environment and creating opportunities the nursery trees, reforestation, mowing grass to support our employees' participation in around trees, and cleaning the coastal area. voluntary activities.
● Basic Group Social Contributions Policy
• We will help create a sustainable society, engaging in activities to contribute to society. • We will particularly prioritize progress in medicine and pharmacology, social welfare and environmental conservation. • We will assist with disaster restoration, youth education, and promote culture and the arts. • We will foster healthy social development by par ticipating in and suppor ting voluntar y activities. • We will engage with and prosper with communities.
76 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 77 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi . 1 At Daiichi Sank yo Kusuri Museum, we had Through communication, exchange with Expanding the interest of youth in science
younger generation to the fun and wonder of of wonder and fun the to generation younger total of 120 people participated. participated. people 120 of total this eventin fiscal and 2012, ourresearchers summer-specific events. firstWe implemented science. We are carrying out these activitiestypes of toraise awareness of youth towards experiments, weare seeking toexpose the offices located. are became thelecturers on“Let’s experiencepower the of enzyme” for 5th and6th graders. A researchers, and helping to conduct conduct to helping researchers, and “science” and“medicine” in areas in which our
In our first year, we have had visitors from theNihonbashi area, as well as from many middle
This programThis was implementedcooperation in We will understandingcontinue promoting public will We activities Company’s of the contributing and to We are striving to become the center for comprehensive information on medicine. on information comprehensive for center become the to striving are We future career. future schools and high schools in the greater Tok yo metropolitan area who are using the facility as par t as the town for medicine ever since. Since its foundation, we have had more than 20,000 visitors. visitors. 20,000 than more had have we foundation, its Since since. ever medicine for town the as of career of numberstudentsTheof training. increasing. attendingpart school a is As a trip a as of our communities by providing hands-on experience aligned with the idea of medical education* medical of idea the with experience aligned hands-on providing by communities our Contribute to Contributesociety comprehensive providing to by pharmaceutical company, it is essential for us to promote public understanding. Beyond that, we we that, Beyond understanding. public promote to essential us for is it pharmaceutical company, their consider to generations younger opportunities for provides facility that a creating to plan Head of General Affairs & Procurement Department, General Affairs & Human Resources Division, Division, Resources Human Affairs & General Department, Procurement Affairs & General of Head Daiichi Sankyo Ltd. Co., Understanding the effectiveness and side effects of medication and understanding how to use medication correctly.medication use to how understanding effectivenesseffects and the medication Understanding side of and InFeb 2012,Daiichi Sank yoKusuri Museum was founded inNihonbashi, which has been known information on medications information on Ryoichi WatanabeRyoichi
with theShiki TheatreCompany and anon-profit their families *1 support for our family.” our support for such as “Because the show creates a wonderful creates a show “Because the as such and across the countr a y, total and spirit membersfamily enjoyed have and the of 232patients excitement of the show. Thirty Daiichi Sankyo Sankyo Daiichi Thirty show. the of excitement We volunteers. as participated have employees organization called “Cancer Support Community.” Support Community.” “Cancer called organization diversioncontinue patients for this to want we you Support cancer patientsto and in the future,” and,“We appreciate thehope and received positive feedback from the participants participants the from feedback positive received patients and their family memberss to enjoy the the enjoy memberss to family their and patients the Opera,” the of “Phantom spectacle of musical Theatre Company. Shiki by musical PresentsFamily Ties Theater for 2012” cancer It has now been presented on three occasions, occasions, three presented on been now has It
In September, 2012, we held “Daiichi Sankyo Sankyo “Daiichi held we 2012, September, In Voice Social Contribution Activities
Activities in Nor th America
Support for cardiovascular disease patients Hosted “Heart Walk”, an event to raise and uninsured people in rural areas awareness of prevention of heart disease
Daiichi Sankyo, Inc. (DSI) supports activities of In October 2012, Luitpold Pharmaceuticals (LPI) several organizations that place emphasis on hosted a walking event to suppor t the American cardiovascular disease and uninsured/ Heart Association (AHA) at its Shirley, NY under-insured people in rural areas. headquarters. The primary goals of the event The Zufall Health Center which is suppor ted were to raise funds for the AHA and to raise by our company is providing high quality, low awareness of the danger of the disease. cost medical service through ordinary clinic and As a result, a total of $8,001.00 was raised by mobile health clinic “Highlands Health Van”, a the LPI employees. This figure was matched by type of eco-car, to those who are not covered by a corporate contribution bringing the grand total health insurance or who cannot receive coverage to $16,002. Additionally, several thousand dollars for certain services. Medical equipment is were raised by neighboring companies in the furnished as well. In 2012, this program was industrial park who were asked to participate. expanded to the whole State of New Jersey, The most significant result was the and about 61,000 patients now can receive the participation and engagement of LPI’s employees appropriate medical care and dental treatments. including several members of the management In addition, ten new schools have joined the team. This level of par ticipation demonstrated “Students 2 Science” learning experience. This that LPI’s employees are supportive of such program provides opportunities for hands-on activities and many brought family members to learning to approximately 1,300 students in junior participate in the event. high school and high school.
Our contributions to our communities I am very proud of the employees of through our support programs. Luitpold and their families for their active participation in this fundraising event. Marah Oberfield Philanthropy and Corporate Debra Carlin Communications Manager of Benefits and HR Daiichi Sankyo, Inc. Administration Luitpold Pharmaceuticals, Inc. Our commitment to making a meaningful difference In the past few years, LPI has in peoples’ lives extends built up a good relationship beyond our medicines. We with the American Hear t look for ward to helping Association, but this is for the more patients, students and first time we held this type of communities through programs that provide better event, in which all employees access to medical care, inspire future scientists, and of the Company could par ticipate. I am pleased that offer relief to people and communities who need I become a member of the volunteer committee, assistance to recover from natural disasters or other and I look for ward to enjoying future activities that difficult circumstances. promote CSR.
78 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 79 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Environmental conservation is is conservation Environmental responsibility. everyone’s I hope for the improvement of children's healthcare all over the world. It feels good to a part be of an activity health. human to contributes which General Manager Daiichi Sankyo Austria GmbH Ralf Göddertz And what is especially important: the field forcewho participated. Doctor to related programs various conduct to to new and improved treatment activitycontributeimprovement will the to of substances from contaminating environment. environment. contaminating substances from areas in the future. future. areasthe in children’s healthcare. Our commitment to the the commitment Our to the to ranges environment productiveentire our of chain equipment used at Daiichi harmful avoid to helps product electrical/electronic experience to be a part of theFit options for children in Austria.options for in children countries will also benefit from the improved challenges facedby families,and the general Sank yo.Providing an adequatedisposition for directand candid feedback from Children and adolescentsin other Senior Manager- medications, including the the including medications, prospects for cures because of the international international the because of prospectscures for involvement in this network. hopeI that this awareness, of lack constraints, mobility patient health care challenges inIndia. We would also like Heart Movement, and to receive receive to and Movement, Heart therapy various covering Awareness Patient It was rewarding indeedIt a I was able to gain insight intoissues such as If there are more trials, it will lead Director Operations Industrial of LTDA. Farmaceutica Brasil Sankyo Daiichi Ranbaxy Laboratories Ltd. Marketing & HDL ForceTask HDL Marketing & Debajit ROY Debajit Tanaka Edison The need to catch up in regard to testing Activities in Brazil Activities in Activities in India Activities in Activities in Europe Activities in To To date, people 47,420 have At Daiichi Sankyo Brazil, we offer employees offer employees we Brazil, Sankyo Daiichi At Dealing with environmental protection protection environmental with Dealing through recycling of electrical and electronic waste Conducting “Fit Heart Movement” to to Heart Movement” “Fit Conducting promote early diagnosis of CVD Supporting “OKIDS”, a research drugs children’s network for
who par ticipated in campaign.this for preventing or reducing risk of CVD is awareness awareness is CVD of risk reducing or preventing for waste, as well as training sessions tolearn more about first established. would require setting priorities and strategic priorities setting and require would research network drug first pediatric called the awareness of the employees. awareness the of conducted doctors by 5,198 and early diagnosis of patients at risk for CVD.Fit suppor t patients with identified risks in receiving environmental preservation. preservation. environmental early medical intervention. causes key One of interventions the India. of death in and prescription in these age groups, so this children and adolescents arebeing treated with Such activities lead to discounts to dispose personaldiscounts of to electrical/electronic Cardiovascular disease (CVD) is one of the leading leading the of one is Cardiovascular (CVD) disease drugs for use by children is enormous, and and enormous, is children by use for drugs drugs which are not explicitly approved use not for are which drugs how they can contribute to to contribute can they how received medical attention cities.in 212 These were increasing the environmental environmental the increasing increase awareness of "primary prevention" and and increase awareness"primaryprevention" of remains a serious concern. serious a remains Sankyosupporting is Austria Daiichi management. “OKIDS” in Austria, where it was was it where Austria, in “OKIDS” HeartMovement is an initiative fromRanbaxy to In the European Union (EU), a large number a of European (EU), the Union In Social Contribution Activities
List of Daiichi Sankyo Group Social Contribution Activities (FY2012) Daiichi Sankyo Group is engaged in various social action works all over the world, making contributions to building a sustainable society as a "Good corporate citizen."
Main Base of Activity Japan North America
Activities such as research grants Donation activities Academic Research (medicine, Support to foundations pharmacology) Donation activities
Provision of mobile healthcare field Support to the Highlands Health Van clinics in India, Cameroon and Tanzania P. 75 P. 78
Sponsored “Hear t Walk”, an event to Raise Awareness of Support to cancer patients and their families P. 77 Prevention of Heart Disease P. 78
Support for the Pharmacy Service Education Program, an information Support for public programs provision program on pharmaceuticals by pharmacists Social Welfare Offering of “@ Health Recipe,” original cooking recipes for lifestyle-related An employee's volunteer commitment program disease prevention
Assistance to a support program for the cancer patients and families of the Participate in the TABLE FOR TWO program to make a donation through food American Cancer Society
A blood donation Support to needy families through an operating body of childcare facilities
Cleanup activities for roads and rivers near the office
Participation in green developments and conservation activities at parks etc. near the office
Par ticipation in clean hiking
Environment Promotion of car free day
Promotion of reuse and resource-recycling
Participation in "Light Down" campaign
Electricity saving activity in the office
Offering hands-on science sessions “Students to Science Holding of science and pharmacy seminars for high school students (S2S)” to junior and senior high school students. P. 78
Support for hands-on science education for kids at Da Vinci Science Center Holding of science sessions for kids and Morris Museum
Holding of "ASUBIO Kids Study" Participation in internship program at St. John's university
Holding of science experiment study for kids at Daiichi Suppor t for fellowship program at St. John's university Nur turing of Young Sankyo Kusuri Museum P. 77 People Support of Nikkei Education Challenge
Acceptance of students as interns
Visit to universities and provision of lectures
Reception of corporate visitors
Holding of seminars for researchers
Contribution to the activity which encourages the understanding of Japanese culture in England
Support for lifesaving activity Promotion of Culture, Ar t and Working with musical performance Sports Supporting of top athletes
Support of and participation in local community events and ritual festivals
Open facilities
Operation of Daiichi Sankyo Kusuri Museum
Participation in Sapporo Snow Festival
Reception of visitors at factories, R&D center and other facilities
Participation in and offering of premises for the local community’s disaster and fire drills
Participation in the local New Year's parade of fire brigades
Local Holding of environmental reporting sessions and communication events with Communication local communities Distribution of site report
Implementation of lecture meetings and seminars
Implementation of group meetings with neighborhood associations
Participation in traffic safety instruction activities
Open facilities
Reconstruction assistance for the Great East Japan Support for disaster-relief work for hurricane sandy Help with Earthquake P. 76 Disaster-relief Work Support for Disaster-relief Work
80 Daiichi Sankyo Group Value Report 2013 Responsible Corporate Activities 81 P.79 P.79 P.79 ( Taiwan) (India) ASCA and India and ASCA Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Awarding of prizes by the Ranbaxy Science Foundation intended to identify to intended Ranbaxy Foundation by the prizes of Science Awarding A Santa Claus project for kids (Brazil) Tree-planting activity next to our factory (China) the Brazilian the Society ofInterventional Cardiology Hemodynamic and (Brazil) shelters (Thailand) shelters governmental association (Mexico) association governmental cardiac specialty hospitals (Brazil) hospitals specialty cardiac Scholarship and fellowships (China, Venezuela) Cancer (Korea) Foundation Sea turtles releasing activity and financials contribution to turtle babies’ Sea turtlesreleasingactivitybabies’ turtle to financialscontribution and protection environmental(Brazil) and consumption conscious Suppor t tocardiac patients through theHear Friends t Associationbased on Conducting “Fit Heart Movement” to build awareness Heart “Fit Movement”build Conducting to of Support for producing environmental conservationSupport producing for calendar(Venezuela) Suppor t for an organization that helps hepatitisprevious patients surgery to Support (Venezuela)carefollow-up fordental a as kids for ( Venezuela) (Venezuela) Clowns Hospital Dr.Yaso of the Support Venezuela through storybook a Family" Support producing for "Reviving the exchanges party Japan-Taiwan for Year New the of Support Compliance with regulations on ozone depleting substance (India) (ODS) depleting ozone regulations on with Compliance (India) relations betweendiplomatic India and Japan human resources in the areas of medical, pharmaceutical resourcesareas the sciences (India) and ofhuman in medical, prevention of Cardiovascular Disease living costs (China) Mobile healthcare vans for infants and expectant and nursing mothers (India) mothers nursing and expectant and infants for vans healthcare Mobile Donation of heart surgery expense Korea for patients the Heartthrough Foundation (Korea) Donation of child cancer surgeryKorea of child Donation expenseChild the patientsfor through pediatricDonation of cardiologyPeoples' operationNPO costs the through (Thailand) Japan HOPE Donations activities Taiwan) (China, Donation by participation in an event called "Dress Casual Day" (Hong Kong) (Hong event "Dress participationby Day" an Casual Donation called in Participation cleanup in activities at Korean National Park (Korea) KoreanDonation to Park National Service organization (Korea) Participation charity a in walk eventKong) (Hong non- streets the through on youth and children to medicine of Donation Participation volunteer a in activity support to cardiac patients (Brazil) Participation in Eco Park education tour by all Kong) Parkemployees Eco by Participation education all (Hong tour in Par ticipation in"Green Day" campaign (HongRecycle of Electro-electronic Kong) waste (Brazil) Donation"Coração to the Alerta" Campaign(the WarningHeart Campaign) of Donationof books aboutHIV/AIDS tolibraries of suburban Kong) Donation schools (Thailand, Hong schoolsto ( Thailand) Heart Association (Venezuela) Holding of the exhibition of JapanesePainting celebrating60 years of Donation to andparticipation of employeesin “Korea JapanFestival” (Korea) Donation to medical school students in need of economic aid for study and for study and aid ofeconomic need in students school medical to Donation Implementation oflecture for employeesregarded to Implementation of summer course pharmacyof for studentsof ofsummer college (Taiwan)Implementation P.79 Europe emission fleet cars including hybrid cars (UK, Portugal) carshybrid (UK, fleet emission carsincluding 2 Various employee's volunteer activities (France) funds funds for people need orthopedicwho material (Portugal) Of fering of meal packages to as many needy families as our employees ( Turkey) Supporting “OKIDS”, a Research a Drugs Network for “OKIDS”, Children’s Supporting Support for healthcare a program (Germany) Cardiology(SEC) (Spain) Collection of plastic bottle caps and empty sugar packages in order to gather empty orderpackagesbottle plastic to sugar of caps and Collection in Support of Altkirch where factoryour located is (France) disaster-stricken prefectures of Great East Japan Earthquake (Italy) Earthquake Japan East Great of prefectures disaster-stricken (Austria) Donation acute an to coronary syndrome(ACS) project ofSpanish Society of Donation activities (France, Italy, Spain, Switzerland, Ranbaxy Europe) Switzerland, Spain, Italy, (France, activities Donation books (Turkey) medical Donation for making welfare social a to organizationDonation (Germany) Donation to leukemia kids kids (Turkey)foundation leukemia Donation to Donation to orphaned kids (Turkey) kids orphaned foundation Donation to Recycle of computer equipmentuse and ofrecycled paper Portugal) (UK, Donation to forestation (Italy) forestation to Donation Introduction Introduction of lower CO Implementation of scholarship for students from Fukushima prefecture, one ofprefecture, one of scholarship forFukushima students from Implementation Activity *1 Abbreviation of Asia, South and Central America. This is internal terminology indicating markets outside Japan, the United States and Europe. States and United the markets Japan, outside indicating terminology internal is Central America. This and AbbreviationSouth Asia, of *1 Main Base of Academic Research Social Welfare Sports Communication Culture, Ar t and (medicine, (medicine, pharmacology) Help with Disaster-relief Work Nur turing of Young Local Promotion of Environment People Corporate Governance
The Daiichi Sankyo Group places great importance on Outside Directors and outside members of building up a corporate governance structure that is the Audit & Supervisory Board responsive to the trust of our stakeholders, especially • Four out of ten directors are outside directors who our shareholders. In addition to creating a management exercise supervisory function by expressing their structure that can respond speedily and flexibly to opinion objectively, neutrally and fairly in the Board of Directors Meeting based on their experiences changes in the business environment, the Group is in international affairs, financial affairs, corporate working to secure legal compliance, and management management and the medical field. transparency and to strengthen oversight of • Two out of four members of the Audit & Supervisory management and the conduct of operations. Board are outside members, whose auditing role is enhanced by experience in sectors related to risk management and compliance. Daiichi Sankyo Co., Ltd. • Outside directors and outside members the Audit & Supervisory Board are designated independent corporate governance system board members in order to avoid possible conflicts of interest with general stockholders as enumerated by • To clarify directors’ management responsibility and the Tokyo Stock Exchange. reinforce their oversight of management and the conduct of operations, their terms of of fice are set at one year, and four of our ten directors are brought in as outside directors. Remuneration for Directors • To ensure management transparency, the nomination • Remuneration to directors is set in place so as to help of candidate for and compensation of directors and maximize shareholders’ value. In specific terms, the corporate officers are deliberated by a Nomination company grants a performance bonus as a short-term Committee and a Compensation Committee. To secure incentive and share remuneration-type stock option further rightfulness, outside directors are in majority in remuneration as a long-term incentive in addition to the these committees. fixed remuneration of basic remuneration. • For audit of legal compliance and sound management, • In order to ensure that outside directors and members the company has adopted an Audit & Supervisory Board of the Audit & Supervisory Board have a sufficient system, and established the Audit & Supervisory Board. supervisory function over the management, the This Board is comprising four members of the Audit & company pays only basic remuneration without a Supervisory Board, including two outside members of short- or long-term incentive. the Audit & Supervisory Board. • The establishment of the remuneration system and • The company employs a corporate officer system criteria of remuneration for the internal directors, under the supervision of the board of directors, which including revision of standard remuneration for each contributes to appropriate and swift management position, confirmation of bonuses given based on decision-making and the conduct of operations. performance, and calculation and grant of share remuneration-type stock options are deliberated by the • All directors and employees must comply with social Compensation Committee. norm, applicable laws and regulations, the company’s code of conduct and internal regulations as they conduct their jobs. In addition, the internal control system must be built to encourage and enforce this compliance to create a sustainable corporate value. Therefore, the basic policy of the internal control system construction must be agreed by resolution of the Board of Directors.
● Corporate Governance Structure
General Meeting of Shareholders Report Appointment/Dismissal Report Appointment/Dismissal Appointment/ Dismissal Report Board of Directors Audit & Supervisory Board Accounting Auditors Delegation Audit Report Nomination Committee Submission / Appointment/ Report Dismissal/ Compensation Committee Supervision Direction Internal Audit President Consultation Report Department Management Report Recommendation Corporate Ethics Committee Executive Meeting Internal Audit Submission / Direction/ Environmental Management Committee Report Supervision Report/Proposal Basic Policies
Corporate Officers, Divisions, Subsidiaries in Charge of Operations
URL For further details, please see the Corporate Governance Report available on the Company’s website: http://www.daiichisankyo.com/about_us/company_profile/governance/index.html
82 Daiichi Sankyo Group Value Report 2013 Corporate Governance 83 business continuity plan business continuity plan Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Co.,Ltd. business continuity plan Co.,Ltd. Daiichi Sankyo Logistics Co.,Ltd. Daiichi Sankyo Chemical Pharma Daiichi Sankyo Propharma Co.,Ltd. Procedure manuals Business continuity IT for plan Documents regarding compliance regarding Documents Individual business continuity plan continuity business Individual Disaster prevention and response manual response and prevention Disaster Documents regarding environmental and labor accidents labor and environmental regarding Documents Action plan for response to a new strain of influenza Supply chain chain Supply continuity plan Thecompany is taking steps to strengthen We will continue to improve our business Inresponding to any crisis, theDaiichi Sank yo Taking into account social needs, the New BCP has has BCP New the needs, social account into Taking would serve as the Chief Crisis Management OfficerManagement Crisis Chief serve the as would to ensure preparedness. ensure to Business continuity plan appointed under the responsibility of the President) President) responsibilitythe of the under appointed and ensureprompt and cer tainimplementation of smooth a ensure priority of revisedto list drugs a largesupply numberof drugs patients,a used by of crisis management procedures. management crisis and employees. quality of stable supply a ensure emergency and substitutes. no with drugs and emergency drugs, electric generators minimize impact help the to of any continuity view planning in of any changethe in will and business, our impact circumstances that carrycontinue to educationalin-house out programs Group places priority on the safety of all of of safety all the of priority places on Group Continuity Plan (New BCP) in 2012 that will enable distribution maintaining and hubs multiple sources for medical products to support the medical system. system. medical support the to products medical its stakeholders, including patients, medical medical patients, including stakeholders, its communities, local our in residents professionals, it toquickly restore operationsin the event of an its backup system by dispersing production private and installed has also company The purchases. interruption supply the electricity. of in Based onits experiences Business new established a Group the Earthquake, with theGreat East Japan System halt System scale earthquake) Facility accident Facility Product problemProduct Disaster/Accident Natural disaster large- (e.g. Influenza and infection Case/Scandal/Law violation Business continuity basic planbasic BCP system policy Crisis handling Crisis The Head of the Corporate Management Unit Corporate Unit Management the of Head The In the event of a crisis, the President (or Officer(or President the crisis, a of event the In Interms of the factors thatcould prevent the Risk management management Risk Risk management system The Daiichi Sankyo Group defines a “Crisis” as factors as “Crisis” a defines Sankyo Group Daiichi The TheDaiichi Sankyo Group definesrisks as factors that might cause an unwanted impact or secondary that might prevent the Group from attaining its with the underlying risks of its business activities, Crisis managementCrisis a risk of having serious effects on the Group and its its and serious effects having Group of risk the a on the by defined is management Crisis stakeholders. concerning risk management. risk concerning avoiding or eliminating them. avoidingThe Group also provides eliminating or them. shall serve as the executive officerin charge ofrisk events arising from an initial occurrence that have have occurrence that initial an from arising events appropriately managing the impacts of those risks, risks, those of impacts appropriately the managing and minimizing all human, social and corporate organizational goals, and most of these factors can be be factors these can of most and organizational goals, Group employeesGroup education with insight and Group as appropriateresponses to suchevents while Group from attaining its organizational goals, the the goals, organizational its attaining from Group assess and analyze specify, identify, to seeks Group damage while striving towardits organizational goals. underlying risks respond and retaining, by reducing, predicted beforehand. predicted promptly managing and analyzing the cause. analyzing the and managing promptly management. The Group acknowledges that, to realize realize to acknowledges that, Group The management. management its development following sustainable its assume corporate management should principles, dealing by management risk responsibilitymajor for Risk management Risk ● Corporate Governance
Directors (As of June 21, 2013)
Representative Director, Representative Director, Chairman President and CEO Takashi Shoda Joji Nakayama
Member of the Board Member of the Board Member of the Board Member of the Board Takeshi Ogita Ph.D. Kazunori Hirokawa Yuki Sato Manabu Sakai M.D., Ph.D.
Member of the Board Member of the Board Member of the Board Member of the Board (Outside) (Outside) (Outside) (Outside) Hiroshi Hirabayashi Kunio Ishikawa Ichiro Kanazawa Seiji Sugiyama M.D., Ph.D.
Auditors (As of June 21, 2013)
Member of the Audit & Member of the Audit & Member of the Audit & Member of the Audit & Supervisory Board Supervisory Board Supervisory Board (Outside) Supervisory Board (Outside) Kazuo Koike Takashi Chiba Akio Yamada Shigeaki Ishikawa
84 Daiichi Sankyo Group Value Report 2013 Corporate Governance 85 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Head of General Affairs Head ofJapan Company Division, Vaccine BusinessIntelligence & Human ResourcesDivision Head of Corporate Strategy Division Japan CompanyHead Division, of BusinessIntelligence Head of Supply Chain DivisionHead of Legal Affairs & Division CSR Head of Corporate Management Division Japan Company Japan Company Japan Company Japan Company Japan Strategy Division Corporatemanagement Division Corporate Strategy Division Head of R&D Division Head of Sales Japan Company& Marketing Division, President of ASCA Company Head of Finance & Accounting Department, President of Japan Company of Japan President Head ofHead Corporate StrategyDepartment, Corporate Strategy Division ofHead CorporateDepartment, Corporate Communication Head of Marketing Department, Sales & Marketing Division, Head of Japan Development Oversight R&D DivisionFunction, Head of Tokyo Sales Branch, &Marketing Division, Head of Global Brand Strategy Depar tment, CorporateHead of Pharmaceutical Technology Division Head Sales of Branch, Kyushu &Marketing Division, Head of Quality & SafetyManagementDivision Head of Biologics Oversight R&D Division Function, Department,Head of R&D R&D Planning Division Head of Osaka Sales Branch, &Marketing Division, Head of Business Development & Licensing Department, ResourcesHead of Human Department, General Affairs & ResourcesHuman Division Management Division
Akio Yamada Takashi Shoda Tomoo Yokoi Toshiaki Tojo Takashi Chiba Toshiaki Sai Yuki Sato Takeshi Ogita Junichi Koga Joji Nakayama Shigeaki Ishikawa Shuji Handa Satoshi Kunitada Shinichi Terano Sunao ManabeSunao Seiji Sugiyama Seiji Glenn GormleyGlenn Norimasa Kamura Norimasa Noriaki Ishida Koichi AkahaneKoichi Inoue Kenji Kazuo Sato Kazuo Koike Kazuo Ryoichi Kibushi Katsumi Fujimoto Ryoji Nagasaka Katsuaki Miyoshi Katsuaki Kazunori Hirokawa Hirabayashi Hiroshi Kunio Ishihara Manabu Sakai Ichiro Kanazawa and Super visor y Board and Super visor y Board Senior Executive Senior Executive Officer Officer Corporate Officer (Outside) (Outside) Representative Director, President CEO and President Corporate Officer Representative Director, Chairman Executive OfficerExecutive Member of Board, the Member of the Audit Member of the Audit Member of Boardthe The Management Execution System Execution Management The Financial Data
Principal Consolidated Financial Data
(Millions of yen)
FY2010 FY2011 FY2012
Financial Results
Net sales ¥ 967,365 ¥ 938,677 ¥ 997,852
Cost of sales 281,677 268,609 313,657
Selling, general and administrative expenses 369,213 386,813 400,631 (exclude R&D expenses)
R&D expenses 194,330 185,052 183,047
R&D expenses to net sales 20.1 19.7 18.3
Operating income 122,143 98,202 100,516
Interest expense 5,519 3,712 4,220
Income before income taxes and minority interests 120,419 33,915 92,095
Net income 70,121 10,383 66,621
Financial Position
Total current assets 894,075 861,530 943,643
Total non-current assets 586,164 656,949 700,428
Total assets 1,480,240 1,518,479 1,644,071
Total liabilities 592,537 685,729 728,326
Total net assets 887,702 832,749 915,745
Financial Indicators
Pre-tax profit margin (Ratio of net income 12.4 3.6 9.2 before income taxes and minority interests to net sales) (%)
Net profit margin (Ratio of net income to net sales) (%) 7.2 1.1 6.7
Net income per share of common stock (yen) 99.62 14.75 94.64
Dividends per share (yen) 60 60 60
Return on shareholders’ equity (%) 8.2 1.3 7.9
Equity ratio (%) 57.4 53.0 53.7
Dividend to net assets (%) 5.0 5.1 5.0
Capital expenditures 37,328 62,878 65,097
Number of employees 30,488 31,929 32,229
86 Daiichi Sankyo Group Value Report 2013 Financial data 87 0 22 20 18 16 (%) 18.3 2012 183.0 FY 20.9 billion which wasbillion 20.9 ¥ 19.7 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi 185.1 FY2011 Ratio of R&D expenses to net sales 20.1 3 . 194 FY2010 2.3 billion, there billion, was improvement an 2.3 ¥ R&D expenses R&D This largely reflected the absence of an an of absence the reflected largely This In addition increase the to In operating in income 15.9 billion15.9 decrease in corporate tax on a year- 0 R&D Expenses and Ratio of R&D R&D of Ratio and Expenses R&D Sales Net to Expenses 50 ¥
200 150 100 billions of yen) (
totaling the previous year related to provisions made by by made provisions previous to related year the Ordinary Income Net Income Net associated with impairment loss for goodwill was was goodwill for loss impairment with associated 30.1% year on year, to ¥99.1 billion. billion. ¥99.1 to year year, on 30.1% association with the a as configuration NHI product price in change the with and revision in April 2012 efforts outcome. positive produced on-year basis. on-year of Justice. Also, since tax carriedsince loss forward Also, Justice. of on year, to ¥66.6 billion. billion. ¥66.6 to year, on extraordinar y loss of ¥39.9 billion recorded in of profit and loss related to financial derivative Ordinary or income increased billion, by ¥22.9 resolved during this fiscal year, the effective tax the year, fiscal this during resolved resulted which reduced, was tax corporate of rate in products Ranbaxyof worth mainly due to the smaller depreciation of Indian Indian of depreciation smaller the to due mainly losses the although dollar US against the rupee significant previous year brought the recorded in negative impact. result of expansion of products rivals launched mainly mainly launched rivals products of expansion of result cost-cutting group-wide the market, Japanese in Ranbaxy for a settlement with the U.S. Department U.S. the Ranbaxysettlement with a for Net income grew by ¥56.2 billion, year or 541.6% ● 8 0 18 16 14 12 10 (%) and ® 10.1 , a treatment a , 2012 ® 997.9 FY product, in first half. first in product, Operating income to sales *1 10.5 938.7 FY2011 12.6 967.4 FY2010 combination tablets LD and HD for the for the HD and LD tablets combination , a treatment for reflux esophagitis, together together refluxesophagitis, for treatment a , ® ® Consolidated Net sales 0 Although price cost ratio increased in increased ratio in cost price Although As for overseas business, net sales grew by ¥7.5 Consolidated Net Sales and 800 600 400 200 An abbreviated name for First to File. The U.S system to ensure 180-day market exclusivity for the first company which files a a files market first exclusivity which company the for 180-day ensure system to U.S The File. First to abbreviated for An name patent application for generic drugs. generic for patent application
billions of yen)
1,200 1,000 ( Analysis Operations of Results of Operating Income to Sales to OperatingIncome year on year, to ¥100.5 billion. billion. year ¥100.5 to year, on term for some subsidiaries in the area. Thus, the the Thus, area. the in subsidiaries some for term for multiple myeloma and bone metastases, and metastases, and bone and myeloma multiple for with revenue contribution of Ranmark of contribution revenue with treatment of hypertension. treatment of Operating Income *1 Net Sales Net sales by ¥4.7 billion. However, However, salesthe billion. of ASCAsales by ¥4.7 of Alzheimer’s disease Memarytreatment of Alzheimer’s on-year increase of 6.3%.Net sales grew by ¥59.2 of ¥8.3 billion. In Europe, the market the Europe, competitionIn has billion. of ¥8.3 Sankyo, Inc. in the U.S. made net sales contribution sales contribution net made U.S. the in Inc. Sankyo, Operating income increased by ¥2.3 billion, or 2.4% 2.4% or billion, ¥2.3 increased by income Operating Group”) posted net sales of ¥997.9 billion, a year-a billion, Group”) posted net sales of ¥997.9 (“Ranbaxy”) by ¥38.4 billion with the contribution of of contribution the with billion (“Ranbaxy”) ¥38.4 by (Asia, South & Central America) were recorded for net sales of ASCA grewbillion. by ¥11.9 Sales also billion, due to the significant growth in sales in Japan launch of Atorvastatin, a FTF a Atorvastatin, of launch increased at increased subsidiaryat Ranbaxy Laboratories Ltd. been intensified, which resulted in decrease of net billion at the currency exchange rate at the time of of time the at rate currency exchange the at billion Daiichi 2011. fiscal of statement financial the reporting NEXIUM Rezaltas During fiscal the 2012, year (“the subsidiaries endedconsolidated its Sankyo and Daiichi March 2013, 31, 15 months 15 in this fiscaldue to thechange in the fiscal ● Financial data
Consolidated Financial Statements (1) Consolidated Balance Sheets
(Millions of yen)
A s o f M a r c h 31, 2 012 A s o f M a r c h 31, 2 013
ASSETS
Current assets
Cash and time deposits 128,926 160,956
Trade notes and accounts receivable 228,505 238,495
Securities 191,336 211,346
Merchandise and finished goods 109,307 113,187
Work in process 24,523 21,830
Raw materials and supplies 35,829 39,413
Deferred tax assets 93,999 111,118
Other current assets 51,252 49,981
Allowance for doubtful accounts (2,152) (2,686)
Total current assets 861,530 943,643
Non-current assets
Property, plant and equipment
Buildings and structures, net 129,330 138,274
Machiner y, equipment and vehicles, net 48,051 63,483
Land 35,688 35,789
Construction in progress 33,660 47,865
Other, net 14,512 18,021
Total property, plant and equipment 261,242 303,434
Intangible assets
Goodwill, net 82,742 73,543
Other intangible assets, net 150,546 149,912
Total intangible assets 233,288 223,455
Investments and other assets
Investment securities 104,560 129,186
Deferred tax assets 43,186 32,547
Other 14,978 12,140
Allowance for doubtful accounts (307) (337)
Total investments and other assets 162,417 173,537
Total non-current assets 656,949 700,428
Total assets 1,518,479 1,644,071
88 Daiichi Sankyo Group Value Report 2013 Financial data 89 — — 218 600 937 1,979 1,344 4,085 59,798 13,877 32,091 66,073 23,230 43,742 88,989 93,017 45,109 50,000 34,211 29,010 (14,460) (59,974) (24,825) 292,214 150,352 728,326 436,111 107,900 105,194 766,740 907,474 915,745 1,644,071 (Millions of yen) of (Millions A s o f M a r c h 31, 2 013 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi — 184 578 767 198 1,246 5,313 2,928 3,495 61,824 10,060 23,191 71,079 39,138 74,652 52,081 50,000 22,308 24,312 (14,558) (78,104) 290,764 138,682 685,729 394,965 100,000 104,000 105,194 742,409 883,045 832,749 (100,611) 1,518,479 A s o f M a r c h 31, 2 012 Accrued employees’ severance and retirement benefits retirement severance and Accrued employees’ Accrued directors’ severanceretirement and benefits Allowance for sales returns Allowance for sales rebates Accrued expenses Trade notes and accounts payable accounts and notes Trade Total long-term liabilities Total current liabilities Treasury stock, at cost at stock, Treasury Total shareholders’ equity Total accumulated other comprehensive income comprehensive other accumulated Total Short-term loans payable Other long-term liabilities Other current liabilities Common stockCommon Capital surplus Provision for environmental measures Provision disasterforloss on Provision for settlement expenses Provision for environmental measures Bonds payableBonds Long-term loans payable Deferred tax liabilities Retained earnings Netunrealized gain orloss investment on securities Income Income taxes payable Deferredlosseshedges or gains on Foreign currency translation adjustments Accumulated other comprehensiveincome Total liabilities Total net assets Shareholders’ equity Current liabilities Subscription rights to shares Long-term liabilities Minority interests Minority Totalliabilities andnet assets LIABILITIES NET ASSETS NET Financial data
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income)
(Millions of yen)
Fiscal 2011 Fiscal 2012 (For the year ended March 31, 2012) (For the year ended March 31, 2013)
Net sales 938,677 997,852 Cost of sales 268,609 313,657 Gross profit 670,067 684,195 Selling, general and administrative expenses Advertising and promotional expenses 95,694 96,770 Salaries and bonuses 111,479 114,573 Severance and retirement costs 10,129 10,307 Research and development expenses 185,052 183,047 Other 169,509 178,978 Total selling, general and administrative expenses 571,865 583,678 Operating income 98,202 100,516 Non-operating income Interest income 2,842 4,547 Dividend income 2,672 2,371 Gain on valuation of derivatives — 6,411 Other income 4,490 4,252 Total non-operating income 10,005 17,581 Non-operating expenses Interest expense 3,712 4,220 Foreign exchange losses 8,046 11,735 Equity in net losses of affiliated companies 207 397 Loss on valuation of derivatives 16,496 — Other expenses 3,526 2,596 Total non-operating expenses 31,990 18,950 Ordinary income 76,217 99,147 Extraordinary income Gain on sales of non-current assets 7,654 5,620 Gain on sales of investment securities 4,497 6,411 Gain on change in equity 93 100 Reversal of provision for loss on disaster 1,707 — Other income 840 — Total extraordinary income 14,792 12,132 Extraordinary losses Loss on disposal of non-current assets 2,278 3,540 Loss on impairment of long-lived assets 7,717 9,460 Loss on product recall — 2,789 Loss on business restructuring 1,279 1,303 Loss on sales of investment securities — 661 Provision for settlement expenses 39,920 461 Provision for environmental measures 1,246 398 Loss on abandonment of inventories 1,677 104 Environmental expenses 256 83 Loss on valuation of investment securities 198 35 Loss on disaster 2,367 — Other losses 152 345 Total extraordinary losses 57,094 19,184 Income before income taxes and minority interests 33,915 92,095 Income taxes — current 28,861 38,816 Income taxes — deferred 10,896 (14,916) Total income taxes 39,758 23,900 Income (loss) before minority interests (5,842) 68,195 Minority interests in net income (loss) of consolidated subsidiaries (16,225) 1,573 Net income 10,383 66,621
90 Daiichi Sankyo Group Value Report 2013 Financial data 91 104 1,164 4,489 11,897 56,132 68,195 42,966 124,327 119,838 (Millions of yen) of (Millions Fiscal 2012 Fiscal Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi (For the year ended March 31, 2013) 31, March ended year the (For (421) 5,748 (5,842) (1,558) (1,887) (23,693) (21,619) (21,805) (17,850) Fiscal 2011 Fiscal (For the year ended March 31, 2012) 31, March ended year the (For Total otherTotal comprehensiveincome Shareof other comprehensiveof income associates accountedequity method forusing Comprehensive attributableincome owners to parent of the Comprehensive attributable income minorityto interests Netunrealized gain orloss investment on securities Deferredlosseshedges or gains on Foreign currency translation adjustments Other comprehensive income Comprehensive income (Comprehensive attributable income to) Income (loss) before minority interests (ConsolidatedStatements Comprehensive of Income) Financial data (3) Consolidated Statements of Changes in Net Assets
(Millions of yen)
Fiscal 2011 Fiscal 2012 (For the year ended March 31, 2012) (For the year ended March 31, 2013) SHAREHOLDERS’ EQUIT Y Common stock Balance at the beginning of current period 50,000 50,000 Changes of items during the period Total changes of items during the period — — Balance at the end of current period 50,000 50,000 Capital surplus Balance at the beginning of current period 105,194 105,194 Changes of items during the period Total changes of items during the period — — Balance at the end of current period 105,194 105,194 Retained earnings Balance at the beginning of current period 774,274 742,409 Changes of items during the period Dividends from surplus (42,234) (42,235) Net income 10,383 66,621 Disposal of treasury stock (13) (54) Total changes of items during the period (31,865) 24,331 Balance at the end of current period 742,409 766,740 Treasury stock, at cost Balance at the beginning of current period (14,581) (14,558) Changes of items during the period Purchase of treasury stock (12) (12) Disposal of treasury stock 35 109 Total changes of items during the period 22 97 Balance at the end of current period (14,558) (14,460) Total shareholders’ equity Balance at the beginning of current period 914,888 883,045 Changes of items during the period Dividends from surplus (42,234) (42,235) Net income 10,383 66,621 Purchase of treasury stock (12) (12) Disposal of treasury stock 22 55 Total changes of items during the period (31,842) 24,428 Balance at the end of current period 883,045 907,474 ACCUMULATED OTHER COMPREHENSIVE INCOME Net unrealized gain or loss on investment securities Balance at the beginning of current period 16,559 22,308 Changes of items during the period Net changes of items other than shareholders’ equity 5,748 11,903 Total changes of items during the period 5,748 11,903 Balance at the end of current period 22,308 34,211 Deferred gains or losses on hedges Balance at the beginning of current period 1,193 198 Changes of items during the period Net changes of items other than shareholders’ equity (995) 739 Total changes of items during the period (995) 739 Balance at the end of current period 198 937 Foreign currency translation adjustments Balance at the beginning of current period (83,636) (100,611) Changes of items during the period Net changes of items other than shareholders’ equity (16,974) 40,637 Total changes of items during the period (16,974) 40,637 Balance at the end of current period (100,611) (59,974) Total accumulated other comprehensive income Balance at the beginning of current period (65,883) (78,104) Changes of items during the period Net changes of items other than shareholders’ equity (12,221) 53,279 Total changes of items during the period (12,221) 53,279 Balance at the end of current period (78,104) (24,825) SUBSCRIPTION RIGHTS TO SHARES Balance at the beginning of current period 3,544 3,495 Changes of items during the period Net changes of items other than shareholders’ equity (48) 589 Total changes of items during the period (48) 589 Balance at the end of current period 3,495 4,085 MINORIT Y INTERESTS Balance at the beginning of current period 35,153 24,312 Changes of items during the period Net changes of items other than shareholders’ equity (10,841) 4,697 Total changes of items during the period (10,841) 4,697 Balance at the end of current period 24,312 29,010 TOTAL NET ASSETS Balance at the beginning of current period 887,702 832,749 Changes of items during the period Dividends from surplus (42,234) (42,235) Net income 10,383 66,621 Purchase of treasury stock (12) (12) Disposal of treasury stock 22 55 Net changes of items other than shareholders’ equity (23,111) 58,567 Total changes of items during the period (54,953) 82,995 Balance at the end of current period 832,749 915,745
92 Daiichi Sankyo Group Value Report 2013 Financial data 93 0 7 — — — — — 26 (12) (31) 473 397 461 (114) (517) 9,460 7,794 7,500 3,421 4,220 1,575 4,042 7,718 6,902 (6,411) (6,515) (6,918) (1,002) (5,749) (2,079) (1,300) (6,159) (5,478) (5,689) (3,189) (4,122) 92,095 41,423 11,119 19,720 11,537 16,434 15,610 (23,864) (42,240) (73,173) (23,557) (57,330) (21,754) 111,566 223,344 190,919 150,025 129,247 212,673 (121,286) (279,192) (109,281) (Millions of yen) of (Millions Fiscal 2012 Fiscal Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi (For the year ended March 31, 2013) 31, March ended year the (For 0 1 — (12) (32) 303 939 382 207 (325) (464) (821) 7,717 4,413 6,967 3,712 7,822 7,428 8,562 6,913 (1,922) (1,078) (3,463) (5,514) (4,496) (5,375) (9,124) (8,741) (3,266) (7,003) 33,915 46,305 11,076 16,496 22,782 39,920 11,270 28,829 72,566 13,209 92,569 (71,291) (16,096) (45,040) (34,255) (31,849) (42,240) (73,864) (54,576) (31,900) (50,199) (89,728) 153,899 212,673 120,823 302,402 (142,614) (125,095) Fiscal 2011 Fiscal (For the year ended March 31, 2012) 31, March ended year the (For ConsolidatedStatements Flows Cash of
Amor tization of goodwill Acquisitionsproperty, of equipment and plant Acquisitions ofintangible assets Acquisitions of investment securities Acquisition of investments subsidiaries in Other, netOther, Other, netOther, Other, netOther, Subtotal (Gain) loss on ofvaluation loss derivatives on (Gain) (Increase) decrease in prepaid pension costs pension prepaid in decrease (Increase) securities investment sales of on loss (Gain) sales disposalproperty, ofloss and on equipment (Gain) and plant (Gain) loss on loss(Gain) valuation on of investment securities inventories in decrease (Increase) (Increase) decrease in trade notes and accounts receivable accounts and notes trade in decrease (Increase) Purchase scope of in change investmentsof subsidiariesconsolidation in resulting in Payments for transfer receivable of loans business short-term in decrease (increase) Net Net cash used in investing activities payable loans short-term in (decrease) increase Net Depreciation Loss on impairment of long-lived assetslong-lived ofimpairment Loss on Payment for shor t-term loans receivable Proceeds from long-term loans payable Repayments of long-term loans payable Proceeds from collection ofloansreceivable Proceeds from issuance of bonds Redemption of bonds Foreign Foreign exchange (gains) losses net(income) losses in ofEquity affiliated companies Provision for settlement expenses Net cashused in financing activities Proceeds from stockissuance minority shareholdersto stock treasury of Purchases Proceeds fromof sale treasury stock Dividends paid Proceeds from maturities securities of in timePurchases deposits securities of sales from Proceeds Proceeds from sales ofproper ty,plant and equipment Payments into time deposits time into Payments Net cashprovided by operating activities Proceeds from salesof investment securities Income beforeIncome income taxes minority interestsand Increase (decrease) in allowance for doubtful accounts doubtful for allowance in (decrease) benefits Increase retirement and severance accrued in (decrease) Increase Interest and dividend income Interest dividend and Interest expense Increase (decrease) in trade notes and accounts payable accounts and notes trade in (decrease) Increase Increase (decrease) in accounts payable and accrued expenses accrued and payable accounts in (decrease) Increase Interest and dividendsreceived Interest paid Income Income taxes paid Cash flows from operating activities Cash flows from financing activitiesCash flows from financing Cash flows frominvesting activities Cash and cash equivalents, at end of of year end at equivalents, cash and Cash Cash and cash equivalents,beginning of year Effect of exchangerate cash equivalents cash equivalents and changes on cash and cash in (decrease) increase Net (4) ESG Data
2 Environment Goal reference Page Classification Items Scope Unit FY2010* FY2011 FY2012
In Japan t-CO2 9,156 8,579 7,845 Sales vehicles*1 Global t-CO2 40,098 37,369 37,908
In Japan t-CO2 5,078 4,904 5,017 Offices Global t-CO2 11,332 12,972 19,691 67 Breakdown of CO2 emissions In Japan t-CO2 142,782 146,080 152,052 Plants and R&D centers Global t-CO2 430,182 422,892 463,951 CO2 In Japan Total t-CO2 157,016 159,563 164,914
Global Total t-CO2 481,612 473,233 521,550
In Japan t-CO2 — 85,159 94,192 Scope 1 CO2 emissions by Global t-CO2 — 182,519 217,257 — Greenhouse Gas Protocol In Japan t-CO2 — 74,404 70,722 Scope 2 Global t-CO2 — 290,715 304,293 Electricity In Japan 1,000 GJ 1,930 1,800 1,836 City gas In Japan 1,000 GJ 1,082 1,339 1,443 Breakdown of Others — energy use (LPG, LNG, heavy oil, kerosene, diesel oil, gasoline) In Japan 1,000 GJ 460 329 351 (in Japan) Steam In Japan 1,000 GJ 33 31 28 Energy In Japan Total 1,000 GJ 3,505 3,499 3,659 Electricity Global 1,000 GJ 4,460 4,400 4,678 City gas Global 1,000 GJ 1,086 1,468 1,571 Breakdown of 68 energy use Others (Group overall) (LPG, LNG, heavy oil, kerosene, diesel oil, gasoline) Global 1,000 GJ 2,295 2,067 2,366 Global Total 1,000 GJ 7,842 7,935 8,616 In Japan 1,000m³ 13,206 13,327 13,535 Water used Global 1,000m³ — 15,651 16,199 Water 69 resources In Japan 1,000m³ 13,620 13,708 13,284 Wastewater Global 1,000m³ — 14,072 14,386 BOD In Japan t 49 40 42 Water 70 pollution COD In Japan t 32 22 23 Waste generated In Japan t 34,594 39,437 39,421
Outsourced waste In Japan t 19,102 18,833 26,824 treatment Recycled waste In Japan t 8,874 11,347 12,894 Waste 69 Recycling rates In Japan % 46.5 60.3 48.1 Final disposal volume In Japan t 113 365 158 Final disposal rate In Japan % 0.33 0.93 0.40
Amount of office In Japan Million 74.21 70.78 69.70 paper consumed sheets In Japan t 3.6 0.9 0.6 SOx Global t — 598 198 Air 70 In Japan t 43 46 35 NOx Global t — 53 354 Amounts handled In Japan t 3,474.6 5,704.0 6,087.1
Amounts In Japan t 87.8 121.7 112.8 discharged (air)
Amounts In Japan t 7.3 3.6 3.3 PRTR — discharged (water)
Amounts In Japan t 20.5 43.9 47.7 discharged (sewer)
Amounts In Japan t 1,587.2 3,237.7 2,495.2 discharged (waste)
Containers and In Japan t 2,061 2,321 2,410 Containers — packaging In Japan Sites 8 7 8 Management 66 ISO 14001-certified sites Global Sites 12 13 14
*1 Carbon offset-type sales vehicles in Japan were leased so that CO2 emissions from sales vehicles were entirely offset. *2 Kitasato Daiichi Sankyo Vaccine is included only in Water pollution, amount of office paper consumed, and air pollution within the data of fiscal 2010.
Reference Guidelines
・UN Global Compact ・ISO26000 ・Global Reporting Initiative(GRI) Sustainability Reporting Guidelines Version 3.1 ・IIRC(International Integrated Reporting Council) ・Japanese Ministry of the Environment’s Environmental Reporting Guidelines, 2012 edition Consultation Draft
94 Daiichi Sankyo Group Value Report 2013 ESG Data 95 4 0 4 2 7 5 10 36 30 30 60 81 33 3.6 669 105 147 185 191 409 104 100 2.20 55.5 18.3 19.0 17.0 0.39 0.01 9,251 1,901 7,305 2,183 8,277 2,966 183.0 14,701 32,229 13,951 117,000 9,981,713 FY2012 FY2012 December : First December : First Approximately1,500 4 0 4 2 10 13 12 43 30 30 60 23 — 3.3 652 105 158 104 445 217 101 100 2.14 60.0 19.7 19.3 16.8 0.44 0.01 9,308 1,890 7,400 2,176 8,569 3,300 3,761 185.1 14,052 31,929 125,000 FY2011 FY2011 10,067,599 December : First Approximately1,300 December : Second 4 0 4 2 6 10 15 44 30 30 60 68 19 76 — — 2.9 681 107 156 362 199 100 2.03 55.5 20.1 19.0 16.2 0.62 0.01 9,002 1,881 7,328 2,140 8,063 3,434 194.3 13,423 30,488 134,000 9,747,632 June: First June: First Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi FY2010 FY2010 December : First Approximately1,800 December : Second % % % % % % — — Yen Yen Yen Yen Unit Unit Rank Rank Years Hours Cases Cases ¥billion Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Persons Million yen Million yen Million Companies Million yen Million Scope Scope In Japan In Japan In Japan In In Japan In In Japan In Japan In Japan In Japan In Japan In Japan In Japan In Japan In Japan In In Japan In Japan In In Japan In In Japan In Japan In In Japan In Japan In Japan In In Japan In In Japan In In Japan In Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Consolidated Consolidated Consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Non-consolidated Outside Japan Outside Japan Outside *4 The total number of employees received a prize from the culture-building culture-building the from prize received employees of a number total The awards and the achievement awards. year. fiscal the following year each Scope of data: Daiichi Sankyo, Daiichi Sankyo Espha, Daiichi Sankyo Sankyo Business Associe Employment rate of people with physical or mental challenges as of June 1 of of 1 June of as challenges mental or physical with people rate of Employment opening. ter af months 2 during visitors the is 2011 fiscal in visitors of Number Healthcare, Daiichi Sankyo Propharma, Daiichi Sankyo Chemical Pharma, Pharma, Sankyo Chemical Sankyo Daiichi Propharma, Healthcare, Daiichi Daiichi Novare, Sankyo RD Daiichi Sankyo Pharma, Logistics, Asubio Daiichi *7
*4 *6 *7 *8 *9 *4 *8
*5 *6 women *3 *5 Items *8 Items *3 Number of directors of Number Number of outside directors outside of Number Number of woman directors Kansayaku of Number statutory outside of Number auditors Total Total R&D expenses Number of company-wide company-wide of Number award winners employees Outside Japan Outside Men taking child care leave Interim Frequency MRs rated Japan employees men of Number employees women of Number Average years of service Evaluation in cardiovascular cardiovascular in Evaluation fieldmedicine Number of companies to take surveys requested Women taking child care leave leave taking child care Women Paid vacation usage rate annualTotal hours worked Employment rate of people with challenges mental or physical Percentage of women in positions managerial Ranbaxy Group Total Percentage of Average annual salary Year-end Total R&D expenses to net sales Training for newly appointed candidates executive hires mid-career for Training Total Training for newly appointed employees managerial Training for new hires Accident severity rate of Percentage/rate participation in a labor union *9 *1 Classification Classification *2 Structure of Board of Directors Structure of Board of Kansayaku (statutory auditors) directors of Compensation Compensation of statutory of Compensation auditors R&D expenses R&D Occupational health and and health Occupational management safety Human Resource Resource Human Development Number of employees by region Number of reports to DS-hotline Number of inquiries received products) (pharmaceutical CSR about Questionnaires procurement Number of visitors to Kusuri museum Number of visitors to the factory Dividends per share per Dividends Disabled Workers Persons taking child care leave Evaluation of corporate corporate of Evaluation activities MR and stance Employee data Employee Amount of Contributions Training by job category ― 82 51 51 47 57 52 77 58 48 55 48 54 05 60 Page Page Social Patients Patients Partners Business Business Employees Governance Compliance and medical medical and development Goal referenceGoal Goal referenceGoal The percentage of women employees and percent of managerial positions positions managerial percent of and employees percentage women The of The data shows the figures as of April 1 in the following fiscal year of each each of year fiscal following the in 1 April of as figures the shows data The filled by women of each as of yearApril1 following the fiscal year. fiscal year. Scope of data: Same as the financial statements. As for the data data the for As statements. financial the as Same data: of Scope year. fiscal on averageon years of service, Daiichi Sankyo Logistics not included. is Conducted by Daiichi Sankyo with cooperation of outside research cooperation outside Sankyo of with company Daiichi by Conducted Shareholders Figures are as of the end of theExcluding settlement Ranbaxy Group period at eachGroup company. professionals Research and and Research
*1 *2 *3 *4 *5 Social Governance Corporate Information ( A s o f M a r c h 31, 2013 )
Corporate Profile
Company Name : DAIICHI SANK YO COMPANY, LIMITED Established : September 28, 2005 Business : Research and development, manufacturing, impor t, sales and marketing of pharmaceutical products Paid-in Capital : ¥50,000 million Headquarters : 3-5-1, Nihonbashi-honcho, Chuo-ku, Tok yo, 103-8426, Japan Branches : Sapporo, Tohoku, Tokyo, Chiba, Saitama, Yokohama, Kita-Kanto, Koshinetsu, Tokai, Kyoto, Hokuriku, Osaka, Kobe, Chugoku, Shikoku, Kyushu
Common Stock Distribution of Shareholders
Number of shares authorized : 2,800,000,000 0.70 % Number of shares issued : 709,011,343 3.40% 40.58% 6.45% Number of shareholders : 126,30 9 ■ Financial institutions ■ Foreign investors ■ Individuals and others ■ Other corporations 20.09% ■ Financial instrument firms ■ Treasury stock
28.73%
Major Shareholders
Number of Name Shares Held Ratio (%) (Thousands of Shares) The Master Trust Bank of Japan, Ltd. (trust account) 45,283 6.39
Japan Trustee Services Bank, Ltd. (trust account) 38,342 5.41
Nippon Life Insurance Company 37,659 5.31
SSBT OD05 OMNIBUS ACCOUNT - TREATY CLIENTS 17,444 2.46
JP Morgan Chase Bank 385147 13,910 1.96
Sumitomo Mitsui Banking Corporation 13,413 1.89
Employee stock ownership of Daiichi Sankyo Group 10,615 1.50
Mizuho Corporate Bank, Ltd. 8,591 1.21
Trust & Custody Services Bank, Ltd., as trustee for Mizuho Corporate Bank, Ltd., 8,497 1.20 Retirement Benefit Trust Account re-entrusted by Mizuho Trust and Banking Co., Ltd.
Tokio Marine & Nichido Fire Insurance 8,395 1.18
Total 202,154 28.51
96 Daiichi Sankyo Group Value Report 2013 Corporate Information 97 Daiichi Sankyo Group Value Report 2013 Report Value Group Sankyo Daiichi Main BusinessMain Activities BusinessMain Activities Main BusinessMain Activities BusinessMain Activities Supervision of Europe group / Development, manufacturing and marketing of pharmaceuticals of marketing and manufacturing Development, / group Europe of Supervision Support for research and development of the Group Supportthe research of development for and Research ofprescription drugsprescription Development drugs of Research, development, manufacturing and marketing of pharmaceuticals of marketing and manufacturing development, Research, pharmaceuticals of marketing and manufacturing development, Research, pharmaceuticals of marketing and manufacturing development, Research, supportmarketing serviceResearch, and development Business support for the Group supportBusiness the for Group supportBusiness the for vaccine of marketing and manufacturing, development, Researchand Development, manufacturing and marketing of healthcare(OTC) products healthcare(OTC) of marketing and manufacturing Development, distribution-related servicesand Distribution pharmaceuticals Research of development and pharmaceuticals of marketing and development Research, pharmaceuticals etc. of marketing and manufacturing Development, pharmaceuticals Research of development and Marketing of pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals for materials raw of Manufacturing Management of Chinese subsidiary business and investment and business subsidiary Chinese of Management pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of Marketing pharmaceuticals of marketing and Manufacturing pharmaceuticals of Marketing Marketing of pharmaceuticals of Marketing pharmaceuticals of Manufacturing pharmaceuticals of Manufacturing 1 Japan U.S.A. ASCA* Europe Company Name Company Company Name Company Company Name Company Company Name Company Aubio Pharma Co., Ltd. Co., Pharma Aubio *1 Abbreviation of Asia, South and Central America. This is internal terminology indicating markets outside Japan, the United States and Europe. States and United the markets Japan, outside indicating terminology internal is Central America. This and AbbreviationSouth Asia, of *1 U3 Pharma GmbH U3 Ranbaxy Laboratories Ltd. Daiichi Sankyo (China) Ltd. Holdings Co., Daiichi Sankyo Pharmaceutical (Beijing) Ltd. Co., Ltd. Sankyo PharmaceuticalDaiichi (Shanghai) Co., Ltd. Taiwan Sankyo Daiichi Ltd. Co., Korea Sankyo Daiichi Ltd. (Thailand) Sankyo Daiichi Ltd. Kong Sankyo Hong Daiichi Daiichi SankyoMexico S.A. deC.V. Daiichi Sank yo Brasil FarmaceuticaDaiichi Sankyo Venezuela, S.A. LTDA. Daiichi SankyoIndia Pharma Private Ltd. Daiichi Sankyo Development Ltd. Development Sankyo Daiichi Daiichi Sankyo Europe GmbH S.A.S France Sankyo Daiichi Daiichi Sankyo Deutschland GmbH Daiichi SankyoItalia S.p.A. S.A. España, Sankyo Daiichi Daiichi Sankyo Ltd. UK Daiichi Sankyo (Schweiz) AG Lda. Portugal, Sankyo Daiichi GmbH Austria Sankyo Daiichi Daiichi Sankyo Belgium N.V.-S.A. B.V. Nederland Sankyo Daiichi Daiichi SankyoIlac TicaretLtd. Ltd. Sti. Ireland Sankyo Daiichi S.a.r.l. Altkirch Sankyo Daiichi Daiichi Sankyo, Inc. Pharmaceuticals, Inc. Luitpold Inc. Plexxikon Daiichi Sankyo RD Novare Co., Ltd. Co., Novare RD Sankyo Daiichi Daiichi Sankyo Business Associe Ltd. Co., Daiichi Sankyo Happiness Ltd. Co., Kitasato Daiichi Sankyo Ltd.Vaccine Co., Daiichi Sankyo Espha Co., Ltd. Co., Espha Sankyo Daiichi Ltd. Co., Healthcare Sankyo Daiichi Ltd. Co., Propharma Sankyo Daiichi Ltd. Co., Pharma Sankyo Chemical Daiichi Daiichi Sankyo Logistics Ltd. Co., Main GroupMain Companies 3-5-1, Nihonbashi-honcho, Chuo-ku, Tokyo 103-8426, Japan Corporate Communications Department Tel: +81-3-6225-1126 CSR Department Tel: +81-3-6225-1067 http://www.daiichisankyo.com
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