In its VISION formulated in 2015, Astellas made a commitment to stand “on the forefront of healthcare change to turn innovative science into VALUE for patients.” Guided by this VISION, Astellas seeks to create medical solutions that deliver VALUE to patients through the pursuit of cutting-edge science.
Under Strategic Plan 2018, Astellas will work to overcome the impact of the expiry of patents for core products that it will face from 2019 to 2020 to achieve sustainable growth. To this end, Astellas will strive to achieve three strategic goals: (1) Generate profit by maximizing product VALUE and operational excellence, along with using the funds generated through this process for (2) Evolving how we create VALUE through the Focus Area approach. Moreover, Astellas will (3) tackle the challenge of developing new businesses (Rx+® programs) that go beyond conventional prescription pharmaceuticals (Rx).
Strategic Goal 1 Maximizing Product VALUE and Operational Excellence
Maximizing Product VALUE
Astellas will work to maximize product VALUE by intensively allocating resources to XTANDI, mirabegron and six key post-POC pipeline projects.
With regard to XTANDI, particularly its current indication, Astellas will strive to further increase penetration of XTANDI amongst urologists, along with establishing it as the first choice of therapy by utilizing extensive data based on the clinical experience accumulated since its launch. Moreover, we aim to expand the patient base and duration of therapy for XTANDI by expanding indications to earlier stages of prostate cancer.
In the OAB franchise, Astellas will work to mitigate the impact of the loss of exclusivity of VESIcare by shifting sales resources to mirabegron. We will continue to educate the public on mirabegron’s clinical profile featuring a balance of efficacy and safety, with the aim of expanding market share.
In addition to maximizing the VALUE of these products, we will preferentially direct management resources to six key post-POC pipeline projects in order to obtain approval of these products as planned and support growth from fiscal 2020 onward.
Pursuing Operational Excellence
Astellas will review all activities from a zero-basis from many different angles, without relying on past precedent.
Specifically, Astellas will preferentially allocate management resources to functions and activities that establish its competitive advantage over other companies, while terminating investment in areas that will not lead to growth or the establishment of competitiveness. In addition, Astellas will work to further evolve the operating model by leveraging cutting-edge technologies such as robotic process automation (RPA) and artificial intelligence (AI), and through globalization of organizations and functions and the standardization of operating processes.
Astellas anticipates an improvement of more than ¥30.0 billion in core operating profit to be generated from new initiatives in fiscal 2020.
Strategic Goal 2 Evolving How We Create VALUE - With Focus Area Approach –
Evolving How We Create VALUE - With Focus Area Approach –
In order to achieve further growth, Astellas will need to identify business opportunities even more flexibly and efficiently than before. With this in mind, in its VISION, Astellas has established Focus Area that reflects many different perspectives, without limiting itself to therapeutic areas, and has set out to find business opportunities in each of these areas.
Under Strategic Plan 2018, Astellas will evolve how it creates VALUE from the Therapeutic Area approach to the Focus Area approach. The goal of the Focus Area approach is to create innovative pharmaceuticals for diseases with high unmet medical needs by allocating management resources to fields that have been carefully narrowed from many different perspectives, including elucidation of pathophysiology through advances in science (biology) and the utilization of treatment modalities and technologies (modality/technology). Astellas will identify unique combinations of biology and modality/technology based on emerging science and translate this into innovative solutions for patients with high unmet medical needs through continuous efforts to ensure development progress and market access. By doing so, Astellas will continuously identify innovative new drug candidates as it upgrades and expands its development pipeline.
In order to promote the Focus Area approach, Astellas will establish research sites that incorporate outstanding external innovation and bolster collaboration with biotechnology startups and academia, based on the concepts of Best Science, Best Talent and Best Place. At the same time, Astellas will also focus on developing human resources with a discerning eye for innovative science.
Astellas will generate high-quality programs by promoting the Focus Area approach, which seeks to drive innovation by flexibly combining biology, modality/technology and disease, while constantly embracing innovative science.
Strategic Goal 3 Developing Rx+® Programs
Developing Rx+® Programs
In addition to growth in the prescription pharmaceutical (Rx) business, Astellas recognizes that it is crucial to constantly look for new business opportunities where it can leverage its current strengths.
Mindful of this, Astellas has commenced initiatives to develop Rx+® programs. Rx+® programs refer to new products and services that create new revenue streams separate from Astellas’ core prescription pharmaceutical products. Rx+® programs will be developed by combining Astellas’ expertise and experience in medical drugs with technology and knowledge from different fields.
Through the Rx+® programs, Astellas will create new treatment solutions that replace conventional therapy or add new VALUE, and medical solutions that contribute positively to the entire patient journey, encompassing prevention, diagnosis, treatment and post-treatment care and management.
Financial Guidance for Fiscal 2020
Financial Guidance for Fiscal 2020
Astellas aims to return to a medium- to long-term core operating profit growth trend after fiscal 2019.
Revenue in fiscal 2020 are forecast to remain at mostly the same level as fiscal 2017. Astellas plans to allocate more than ¥200.0 billion a year to R&D investments for medium- and long-term growth, after setting clear priorities for those investments. In order to ensure both a certain level of profit and adequate R&D investment, we will thoroughly review the cost structure from a zero-basis, in addition to maximizing product VALUE. Through these measures, we are targeting a core operating profit margin of 20% in fiscal 2020. At the same time, we aim to achieve core EPS exceeding the fiscal 2017 level by working to enhance capital efficiency.