Astellas and the global pharmaceutical market
The global pharmaceutical market is valued at approximately $1305.4 billion (2020)* and it’s increasing. Drugs are divided into two categories. One is prescription drugs and the other is over-the-counter drugs. In Japanese pharmaceutical market, 90% of which is accounted for by prescription drugs.
Prescription drugs are divided into two categories: Brand name and generic drugs. Brand name drugs are developed with new active pharmaceutical ingredients or for new purposes, and then manufactured and marketed in house. Generic drugs contain the same active pharmaceutical ingredients but are sold by different companies after the patent expires. Astellas is an R&D-oriented pharmaceutical company that specializes in the development of innovative new drugs.
* Source: The Japan Pharmaceutical Manufacturers Association “DATABOOK 2022”
Copyright © 2022 IQVIA. Quoted from IQVIA World Review, Data Period 2020 (Reprinted with permission)
Classification of drugs
*Ratio in Japanese market
Created by Astellas based on the survey by Ministry of Health, Labor and Welfare (https://www.mhlw.go.jp/toukei/list/105-1.html)
In the disease area where unmet medical needs are still existing, we work on a global scale to create innovative new drugs for patients who are yet to be treated or are not responding adequately to existing therapies.
In our R&D activities, our mission is to create innovative new drugs by going where the most advanced science is (Best Science), working with the world’s top talent (Best Talent), and conducting R&D activities in the optimal environment (Best Place). We hope to deliver our results to patients waiting for new treatments as quickly as possible. Our production facilities are based in Japan, China, Ireland, and the Netherlands. As a global pharmaceutical company, we are currently working in more than 70 countries and are establishing footholds in each market as we continue to expand.
Reaching patients in over 70 Countries
Astellas’ main products
Notable products in our lineup include XTANDI® (treatment for prostate cancer), mirabegron* (treatment for overactive bladder), and Prograf® (immunosuppressant). We expect future growth of key strategic products such as PADCEV® (treatment for urothelial cancer), XOSPATA® (treatment for acute myeloid leukemia), VEOZAHTM (for Treatment of Vasomotor Symptoms due to Menopause) and EVRENZO® (treatment for chronic kidney disease). IZERVAYTM (treatment for geographic atrophy) was launched in September 2023 and added to Strategic products.
Research and development
New drugs are generally developed over a period of 10 years or more through a process of basic research, non-clinical trials, and clinical trials to determine their efficacy, safety, and quality. After that, the drug must go through a review process and be approved by regulatory authorities in each country (in Japan, by the Minister of Health, Labour and Welfare) before it can be provided to patients.
The revenue to R&D expense ratio for the pharmaceutical industry is quite large compared to other industries and this is one of the distinct features of the business. Successful R&D is key to the growth of the pharmaceutical industry, and investment in R&D is important for the continuous creation of innovative pharmaceutical products. Astellas invests approximately 18.2% of its revenue in R&D—well above the average for the pharmaceutical industry.
Astellas has a lot of programs undergoing R&D. There are 20 programs in prescription drugs (Rx).
By leveraging the expertise and knowledge cultivated through Rx business, we started Rx+® business to approach all aspects of healthcare, including prevention, diagnosis, treatment and prognosis. We have four programs underway in its Rx+® business.
Future growth
Corporate Strategic Plan 2021 (CSP2021): Three Goals to accelerate growth
Astellas’ VISION is to be “On the forefront of healthcare change to turn innovative science into VALUE for patients.” CSP2021 lays out multiple strategies that build toward our VISION over the five-year period from FY2021 to the end of FY2025. These are: Strategic Goals to maximize the VALUE we create and provide, Organizational Health Goals, designed to create an internal environment that generates exceptional performance over the long term, and Performance Goals, which measure the progress of our management strategies and serve as ambitious targets in terms of business performance. We believe that these three goals complement each other and will help us execute our strategies.
As we approach FY2025, revenue is projected to grow at a strong average annual rate of 8%. In addition, Astellas' unique research and development strategy, the Focus Area approach, is expected to drive the growth of various projects toward FY2030.
Consolidated revenue forecast (Risk adjusted)
*Strategic products: fezolinetant, PADCEV®, XOSPATA®, zolbetuximab, EVRENZO®, AT132
*Kenji Yasukawa, Representative Director, President and CEO at the time (currently Representative Director, Chairman of the Board)
Shareholder returns
Astellas is committed to distributing profits through shareholder returns while continuously improving corporate value. We strive to raise dividend levels aligned with profit, cashflow plan and actual performance, while giving top priority to business investment to achieve future growth. When surplus funds become available, we flexibly execute share buybacks to improve capital efficiency and the level of returns to shareholders.
Aiming for higher level of dividends increase during CSP2021
aligned with the robust profit growth forecast
Trend of Core OP and dividends (For illustrative purposes only)
