In the pharmaceutical market, we see the emergence of an innovation-friendly environment conducive to the creation of pioneering new drugs.
However, conditions are changing dramatically as the government actively introduces measures to control drug costs and reduce the nation’s financial burden.
In this environment, the Group considers growth through the proliferation of new drugs an important issue and has set “maximizing the ratio of new drugs” as a business strategy under Vision 110 –Stage1–.
For this, we will adopt an activity model that delivers results by increasing the impact of medical details based on visits to medical institutions for in-person meetings with physicians, then deployment of digital channels to provide information.
Through solution-based marketing activities, meanwhile, we will help resolve issues and meet the diverse needs and circumstances of medical practitioners and patients. In fiscal 2023, the first year of our medium-term business plan, we aim to accelerate the proliferation of new drugs (five mainstay products, etc.) launched under the previous plan and thus enter a growth trajectory.
Changing environment(internal and external)
- Government measures to curb medical and drug costs in response to tightened healthcare funding
- 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.)
- Advances in DX in medical care (treatment)
Opportunities
- Expanded lineup of patented new drugs (Beova, Lasvic, Lyfnua, Desalex, Flutiform, etc.)
- Increased demand for testing due to spread of COVID-19
- Expectations for development of new testing methods through technological innovation
- Growing demand for high-quality products
Risks
- Increasing restrictions on medical representative (MR) visits and use of appointment-only systems, making it difficult to meet with physicians and exchange information
- Accelerating decline in sales of long-listed products due to overhaul of the 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
Given restrictions on meetings with medical practitioners, we believe it is important to visit medical institutions directly to provide detailed information that leaves an impact.
This is done through in-person meetings where we provide various kinds of pharmaceutical information and obtain orders for prescriptions. To this end, we provide all MRs with training in detail skills that will help them offer solutions and improve their abilities. Starting with the patient, we formulate hypothetical scenarios to gain an understanding of the patient’s current needs, then draw up a plan and propose a suitable drug formulation from our range of products. In infectious diseases, we will continue to introduce Milton and Rubysta for infection control (prevention) at medical institutions, GeneSoC for identification (diagnosis) of pathogenic microorganisms, and Lasvic for appropriate use (treatment) of antimicrobials.
We will also engage in solution-based marketing activities to provide comprehensive information. In respiratory and otolaryngology diseases, we are working to enhance our product lineup, which includes Lyfnua (chronic cough treatment), Lasvic (new quinolone antibacterial agent), Desalex (antiallergic agent), and Flutiform (combination drug for asthma treatment). We will also propose prescriptions for each disease and provide information that helps resolve issues and meet the needs of medical practitioners, while promoting the expanded use of our products.
Provide information through digital channels
With the COVID-19 pandemic having partially restricted MRs’ visits to medical institutions and in-person meetings with medical practitioners, we have made progress digitalizing our activities to provide pharmaceutical information.
The Kyorin Group considers two-way communication with medical practitioners important for MRs to fulfill their original role: “To achieve appropriate use of pharmaceuticals and contribute to medical care by providing, collecting, and conveying pharmaceutical information.” With this in mind, we visit medical institutions for in-person meetings with physicians, then deploy digital channels to increase the impact of the information we gather, thus enhancing our marketing capabilities.
We will continue to analyze market data amassed internally to grasp the needs of medical practitioners as we engage in high-quality information-provision activities.
Enter a growth trajectory for new drugs.
To enter a growth trajectory, we need to focus on proliferating new drugs to accelerate our growth. We have set the ratio of new drugs (sales of new drugs as a percentage of total ethical drug sales) as a performance indicator (target value of 50% or more) and are working to maximize proliferation to this end. In fiscal 2023, we will aim to increase the ratio of new drugs by ceaselessly promoting prescriptions for Lasvic, Lyfnua, Desalex, and Flutiform, as well as Beova, an overactive bladder (OAB) treatment whose shipment limits were ended in fiscal 2022.
We apologize for the inconvenience caused to medical practitioners by the limitations we placed on shipments of Beova. The situation was caused by a greater-than-expected increase in prescriptions after the prescription period limit was lifted. We subsequently made a concerted eff ort to increase production capacity and ended the limitations in August 2022.
With a steady increase in new prescriptions, we are aiming for the top share of the OAB market. Meanwhile, in April 2022, we launched Lyfnua, the world’s first drug for treating chronic cough. Going forward, we will work to establish a solid market position by promoting understanding of the product’s features, especially among respiratory specialists. In fiscal 2023, we will also exploit the removal of restrictions on the prescription period to achieve market penetration as soon as possible.
Meanwhile, the market for Lasvic shrank due to the promotion of its appropriate use against antimicrobial resistance (AMR), as well as rigorous measures to prevent infectious diseases.
We expect the market to recover to some degree as the COVID-19 pandemic subsides. Looking ahead, we will emphasize the features of Lasvic and grow it into the top-selling product in the oral antibacterial agent market. As for Desalex, we increased sales and market share through focused eff orts 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.
For Flutiform, we will emphasize its usefulness as an aerosol formulation to increase its share on a volume basis (in the low single-digit range).
Establish a presence in designated fields
Adhering to an 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 650 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 work to create a framework for teams to assist each other and achieve their targets by refining our activities to address increasingly diverse medical needs swiftly and systematically.