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Mid-term business management plan

DAIICHI SANKYO Group, 1st Mid-term Business Management Plan
～First Step toward the Realization of the First-Ever Global Pharma Innovator in Japan～

Daiichi-Sankyo Group aims for the realization of the Global Pharma Innovator and has set the goal of “creating innovative pharmaceutical products on an ongoing basis and aiming to deploy businesses establishing the bases in major regions in the world” as a vision for 2015.
As a step toward the realization of our vision for 2015, we have formulated a first mid-term business management plan for the three years starting from FY2007.
Aiming for the realization of this vision, during the first term we intend to establish a foundation to improve our profitability on a global basis in order to establish a path for growth.


Positioning of the Mid-term Business Management Plan

As a first step oriented toward the ideal situation for 2015, we intend to improve and expand our foundation for growth aimed at the realization of the vision for 2015.

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Numerical target from FY2007 to FY2009

The numerical targets for fiscal year 2009: our goals are an operating profit ratio of at least 25%, and an overseas sales ratio of 40% or more.

<Sales trend of major three products. *Olmesartan is the growing driver for the midterm account settlement.>

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Creation of cost synergy by integration

The maximization of synergy by management integration:

  • Strengthening our new-drug discovery ability and improvement of the R&D pipeline
  • Building a  stronger domestic sales structure to boost the profitability of the group as a whole
  • Further expansion of major products such as Olmesaltan and Levofloxacin
  • Improvement of business efficiency by appropriate staff allocation and establishment of functional subsidiaries within the group
(Trend of operating profit)

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Research & Development Strategies

  • Establish a global R&D development system
  • Improvement of R&D pipeline
  • Make a R&D development foundation by strategic investment

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Business Strategies


■Domestic ethical drug business “Target for FY 2009 Sales 470billion yen”

  • Sales synergy by the new domestic sales structure
  • Input sales and marketing resources into the priority product group (Olmetec, Cravit, Mevalotin, etc.) prefenratially
  • Place Olmetec and Cravit as growth driver
  • Improvement of the product value by reinforcing the lifecycle management

(Sales target for the priority product field)

■Domestic healthcare business “Target for FY 2009 Sales 58billion yen Operating profit 10% or more”

  • Building-up the franchise in the field of expertise where several brands including “general cold remedy” and “gastrointestinal drugs” are offered
  • Establishment of the new growth foundation by undertaking the new business development and collaboration and the active development of the new field (functional skin-care, functional food)
  • Improvement of business management efficiency by implementing cost operation

■Overseas business

  • Enhancement of the sales foundation toward the sales expansion of Olmesartan and the marketing of new products around Europe and U.S.
  • Securing of the profit foundation by exporting drug substances including Levofloxacin
  • Expansion of the business foundation in Asian and Latin American regions

DAIICHI SANKYO INC. (DSI) “Target for FY 2009 Sales 200 billion yen or more”


(Expansion of the sales force toward the rapid growth in U.S)

Luitpold Pharmaceuticals, Inc.(LPI) “Target for FY 2009 Sales  60 billion yen or more”

Daiichi Sankyo Europe(DSE) “Target for FY 2009 Sales 70 billion yen or more”


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Shareholder Return

Current financial assets, positioned as working capital and investment funds for flexible strategy, will not expand until fiscal 2009, and the midterm strategy is for active return to all shareholders

■Midterm policies

  • Free cash flow for the term will be appropriated to shareholder return (dividends + share buy back) ⇒“Total Return Ratio” target: 100%
  • Early achievement of DOE 5% and implementation of stable increase in capital
  • Share buy back will be conducted flexibly based on the resolutions at the board of directors' meeting