The market environment for pharmaceuticals is changing dramatically. On the one hand, an environment that recognizes and promotes innovation toward new drug discovery is being created, while on the other hand, measures to rein in drug costs are being proactively introduced to reduce the nation’s financial burden.
Methods of providing information are also becoming more diverse, including the use of digital tools triggered by the COVID-19 pandemic. With further developments like work-style reforms for physicians, we anticipate even greater changes.
Against this backdrop, one business strategy in the medium-term business plan “Vision 110 –Stage 1–” is to “maximize the ratio of new drugs” to produce growth by capitalizing on the market penetration of new drugs.
As a pharmaceutical company that is expected to contribute to people’s health by providing new drugs with high value, we strive to make maximum use of our products’ potential to penetrate markets by understanding the needs of medical institutions through quality communication with medical practitioners, primarily in person, and providing them products and information that can meet those needs.
Through the stable supply of quality products, we are working to maximize product value by contributing to the treatment of the many patients who need our products.
Changing environment(internal and external)
- Promotion of measures to control medical expenses and drug costs associated with pressure on public finances for medical care (revision of drug pricing system)
- Growing need for diagnosis and prevention in addition to treatment
- Changes in the way information is provided to the medical field (introduction of guidelines, etc.)
Opportunities
- Expanded lineup of patented new drugs (Beova, Lasvic, Lyfnua, Desalex, Flutiform, etc.)
- Increased demand for testing due to spread of COVID-19
- Growing demand for high-quality products
Risks
- Reduced opportunities for communication with physicians due to restrictions on visits by MRs and need for appointments for all visits
- Accelerating decline in sales and earnings from overhaul of drug pricing system
- Structural changes in the domestic ethical drugs market
Medium-term business plan
Vision 110 –Stage1– initiatives
Business strategyMaximizing the ratio of new drugs
Emphasize proliferation of new drugs
- Promote in-person meetings with physicians to increase the impact of medical details and accelerate the growth of new drugs
Initiatives under the medium-term business plan
Promote solution-based marketing activities
We believe that two-way communication with medical practitioners is important for MRs to completely fulfill their original role of “achieving appropriate use of pharmaceuticals and contribute to medical care by providing, collecting, and conveying pharmaceutical information.”
When the COVID-19 pandemic partially restricted MRs’ visits to medical institutions and in-person meetings with medical practitioners, we introduced digital activities to provide information.
To achieve even higher-quality communication with medical practitioners, we are integrating digital channels into our in-person visits to medical institutions and meetings with physicians to promote activities that provide detailed information that leaves an impact.
Pursuing these activities, we are working to enhance the capabilities of all MRs through training in the detail skills needed to propose solutions that comprehensively resolve issues related to the diseases that our products address.
We are also analyzing marketing data we have collected internally, aiming to understand medical higher-practitioners’ needs and provide them high-quality information.
Our solution-based marketing activities start with the formulation of hypothetical scenarios to understand a patient’s current needs, then drawing up a plan and proposing a suitable drug formulation from our range of products.
For infectious diseases, we will provide comprehensive information that includes introducing Milton and Rubysta for infection control (prevention) at medical institutions, GeneSoC for identification (diagnosis) of pathogenic microorganisms, and the new quinolone antibacterial agent Lasvic for appropriate use (treatment) of antimicrobials.
For respiratory and otolaryngology diseases, we are working to propose prescriptions for each disease and to enhance our product lineup, which includes the chronic cough treatment Lyfnua, Lasvic, the antiallergic agent Desalex, and the combination drug for asthma treatment Flutiform. By providing information that addresses the needs of medical practitioners, we are working to expand the use of our products.
Achieving a growth trajectory with new drugs.
Recognizing that focusing on expanding the use of new drugs to accelerate growth is important to achieve a growth trajectory, we have set the ratio of new drugs as a percentage of total domestic ethical drug sales as a KPI and are working to maximize their use in the market. Our ratio of new drugs in fiscal 2023 was 47.4%, and we aim to achieve our Stage 1 target of a ratio of at least 50% one year early, in fiscal 2024.
Our overactive bladder (OAB) treatment Beova has been recognized by many physicians for its effectiveness and safety. The number of prescriptions and the acquisition of new prescriptions increased. We will work to increase the number of prescriptions by providing real-world evidence and other information, while aiming to raise awareness of the disease.
Regarding Lasvic, in addition to our ongoing activities to provide information since the product’s release, the market has recovered since the downgrading of COVID-19 (to “category 5” under the Infectious Disease Control Law). Its listing as a recommended drug in multiple clinical treatment guidelines helped increase the number of prescriptions. We are working to expand the product’s use through increased inclusion in treatments and thinking based on guidelines.
The lifting of the prescription period limit made possible long-term prescriptions for Lyfnua in May 2023. We are promoting understanding of the product’s special features, highlighting its effectiveness with long-term data and other means, and striving to convey its safety, with the aim of establishing a position as the only treatment for refractory chronic cough.
As for Desalex, we focused efforts on otolaryngology and internal medicine. Since it is a drug that is both effective and easy to use, we will continue targeting Desalex to be the No. 1 prescription in the field of otolaryngology.
Regarding Flutiform, we will work to increase its volume share by emphasizing the usefulness of its aerosol formulation.
Establish a presence in designated fields
In line with the FC strategy that concentrates resources in designated fields centering on respiratory, otolaryngology, and urology, we aim to establish a presence in those fields by having roughly 630 MRs provide and collect information on the appropriate use of pharmaceuticals and convey that information to medical practitioners.
For marketing, we have adopted a “team structure,” with teams based in secondary medical districts (where multiple MRs are responsible for a designated area), using an area management strategy in which teams cultivate their own areas. Going forward, we will create a framework for teams to assist one another and achieve their targets by refining our activities to address increasingly diverse medical needs swiftly and systematically.
Promoting appropriate use of pharmaceuticals
Although concerns that the incorrect use of pharmaceuticals can harm a patient’s health exist, there are also cases of side effects appearing even if the pharmaceuticals are used correctly.
We strive to quickly provide medical practitioners with accurate information for the appropriate use of Kyorin’s pharmaceutical products to ensure they are used safely and effectively. We also collect information on products’ effectiveness and safety from medical facilities that use our products and convey the results of the analysis and evaluation of that information to medical practitioners.
Following our sense of mission to contribute to people’s health, we act according to high ethical standards and conduct business in strict compliance with relevant laws and regulations, guidelines, industry rules, and internal guidelines including our Corporate Charter.