Deploying its unique strengths, KYORIN Rimedio aims to be a company with a strong business presence and employees who play active roles and take pride in their work.
Business conditions for our company remain challenging, evidenced by annual drug price revisions, widespread supply concerns triggered by quality problems at some companies, and rising costs due to high prices and soaring energy costs.
To ensure stable supplies, we are strengthening our product supply capacity, mainly through the transfer of manufacturing and the commissioning of the Takaoka Plant, which is currently under construction. To address future changes in this environment, we will take on the challenge of entering new fields, spearheaded by the Takaoka Pharmaceutical Technology Innovation Center, and further reinforce our development capabilities.
Changing environment(internal and external)
- Government measures to curb medical and drug costs in response to tight healthcare finances
- Growing demand for pharmaceutical companies to ensure reliability
Opportunities
- Increased demand for generic drugs due to promotion of measures to contain drug costs
- Patent expiries of major original drugs
- Increasing demand for high-quality products
Risks
- Reduced incentives to promote use of generic drugs
- Weaker profitability due to annual drug price revisions
- Soaring prices of raw materials and energy
Medium-term business plan
Vision 110 –Stage1– initiatives
Business strategyAchieving sustainable growth of the generic drugs business
- Maintain strong capability to develop new generic products and leverage such products to accelerate growth
- Strengthen production and procurement systems, including those outside the Group, to ensure stable supplies
- Build a low-cost structure resilient to changing business conditions
Initiatives under the medium-term business plan
Maintain and strengthen our capability to create new generics and accelerate growth
To provide generic drugs that can be used safely, KYORIN Rimedio manufactures pharmaceuticals and provides packaging from the perspectives of medical practitioners and patients, ensuring that products are easy to use in medical institutions and meet the needs of patients taking drugs.
To address changing business conditions, we will enhance our in-house development capabilities by strengthening our expertise, human resources, and organizational functions, with a view toward taking on challenges in new fields. In addition to small molecule compounds, these include highly pharmacologically active drugs, anticancer drugs, and formulations in niche areas.
Going forward, we will advance our business to become a high-profile generic drugs company. In fiscal 2022, we launched eight new products with four ingredients.
Strengthen production and procurement systems to ensure stable supplies
Quality problems at some companies have sparked widespread concern about supply stability and are yet to be resolved. In response, the entire Group is working to optimize production and ordering plans. We will strive to increase product procurement volumes, including using external resources, to ensure stable supplies.
Establish a low-cost structure resilient to changing business conditions
KYORIN Rimedio has always been strong on the sales side thanks to its multifaceted, well-balanced sales channels. Going forward, we will leverage this strength while improving efficiency by reforming our sales structure, increasing sales, and improving cost competitiveness through a strategy of selection and concentration.
Address authorized generics
The Kyorin Group has achieved a certain degree of market recognition for selling both original drugs and authorized generics that meet the diverse needs of medical practitioners and patients.
We currently sell Montelukast Tablets “KM” (our authorized generic version of Kipres), Mometasone Nasal 50μg “KYORIN” (our authorized generic version of Nasonex), and Imidafenacin Tablets “KYORIN” OD tablets 0.1mg (our authorized generic version of Uritos). All three products have gained a share of 50% or higher in their respective generic markets.