For Immediate Release

Company name: DAIICHI SANKYO COMPANY, LIMITED
Representative: Joji Nakayama, President and CEO
(Code no.: 4568, First Section of Tokyo, Osaka and Nagoya Stock Exchanges)
Please address inquiries to Noriaki Ishida, Corporate Officer,
Vice President, Corporate Communications Department
Telephone: +81-3-6225-1126
http://www.daiichisankyo.com

Daiichi Sankyo Announces New 5-year Business Plan

Tokyo, Japan (March 22, 2013) – Daiichi Sankyo Company, Limited (hereafter, Daiichi Sankyo) today announced a new 5-year Business Plan, which will span from April 1, 2013 through March 31, 2018.

 

Overview of new 5-year Business Plan

 

1.  Management Goals for FY2017

Within the period of the new 5-year plan, we will work toward two major objectives in order to realize sustainable growth and overcome the “patent cliff” owing to expiration of the exclusive patent rights to Olmesartan, our mainstay anti-hypertensive agent, in the US and Europe.

    1)  Sustainable revenue growth with improved profitability

We will achieve sustainable growth by maximum utilization of the business foundation created during the 1st and 2nd Mid-term Plans and improve profitability.

Ÿ     * Over 5% revenue CAGR (FY2012 to FY2017).

Ÿ     * Over 15% operating profit margin by FY2017.

Ÿ     * Over 10% ROE.

Ÿ     * EPS of 150 yen.

Ÿ     * Stable dividends and increased shareholder value.

    2)  Enhancement and growth of Group business centering on Daiichi Sankyo and Ranbaxy (creation of synergy)

In addition to Daiichi Sankyo and Ranbaxy achieving high growth and improved profitability in their respective businesses, we aim to create additional synergies between the two companies, not only in the areas of sales and production where initiatives have already begun, but across the various processes of the value chain, including the opening of new markets and the creation of high added-value products.

Ÿ     * Strengthen business in key markets (Japan, India, and USA) and emerging markets.

Ÿ     * Establish flexible corporate structure to navigate changes in business environment.

 

2.  Core Strategies

    1)  Strengthen innovative pharmaceutical portfolio and R&D pipeline

Ÿ     * Maximize cash flows from olmesartan.

Ÿ     * Maximize sales potential for antiplatelet agent prasugrel and oral direct factor Xa inhibitor edoxaban.

Ÿ     * Grow high potential products in Japan.

Ÿ     * Enhance pipeline following launch of edoxaban.

Ÿ     * Expand presence in biologics/biosimilar business.

Ÿ     * Acquire external assets.

    2)  Develop competitive businesses to address diverse local needs

Ÿ     * Expand business in emerging countries through Ranbaxy and the Daiichi Sankyo business in ASCA.*

Ÿ     * Maintain top share in the injectable iron business in the USA through launch of Injectafer.

Ÿ     * Increase profitability of generic and vaccine businesses in Japan.

    3)  Transition to a low-cost operating framework

Ÿ     * Establish organizational structure to address diverse needs in each region.

Ÿ     * Establish global supply chain system for continuous cost reduction.

Ÿ     * Strengthen revenue management at business unit and regional levels.

 

3.  Numerical Targets for FY2017

	FY 2017 (Target)	FY2012 (Latest Estimate)
Net Sales	1.3 trillion yen	990 billion yen
Cost of Goods	37％	31％
SG&A Expenses (R&D expenses)	48％  （14％）	59％ （19％）
Operating Income	200 billion yen （15％）	100 billion yen （10％）
Profit After Tax	110 billion yen	50 billion yen

 

FY2017 forecasted exchange rate: 1 USD = 90 yen; 1 EUR = 120 yen

*ASCA: Refers to Daiichi Sankyo Group companies in Asia, South and Central America

 

For more information, please see the presentation materials for the announcement of the new 5-year Business Plan on our website,

https://www.daiichisankyo.com/investors/library/materials/2012.html