Key Issues to be Addressed
During the period of the 3rd Medium-Term Management Plan, for which fiscal year 2023 was the final year, the Group’s business activities were impacted to a certain degree as the social situation grew even more uncertain with the lingering impact of COVID-19 and mounting geopolitical risks associated with the conflict between Russia and Ukraine and the situation in the Middle East. In 2023, the Group proactively engaged in initiatives that included marketing and operating activities to address the new business environment as social activity restarted after being restrained during the COVID-19 pandemic. On the other hand, the Group dealt with rising prices, etc., due to soaring raw material prices and exchange rate fluctuations.
The fundamental healthcare industry is experiencing a period of changing environment. An aging society, the introduction of expensive drugs, outbreaks of communicable disease, etc. are contributing to an ever-increasing health care budget and making governments of Japan, the U.S. and those in the Europe become more aware of costs for medical treatments. Facing limited financial resources, those governments are weighing the balance between benefits and costs of medical treatments. The NHI pricing system reforms and the penetration of generic drugs are progressing while new technologies such as artificial intelligence, machine learning and gene therapy are evolving as well. Under these circumstances, the consciousness for health including disease preventive measures is steadily increasing. The Group will continue to contribute to a new society that “Only Otsuka Can Do,” and will take this heightened health consciousness as a growth opportunity and proceed toward the realization of sustainable growth.
The Group has been creating new value, underpinned by its corporate philosophy of “Otsuka-people creating new products for better health worldwide” and driven by the management spirit of “Ryukan-godo” (Commitment), “Jissho” (Actualization), and “Sozosei” (Creativity). Integral to this value creation have been (1) new concepts created from the organic fusion of unique and diverse businesses, insights into the world’s true needs, and technological and scientific knowhow; (2) synergies and derivation of diverse operations; and (3) cultivation of niche areas of business. The Group accordingly aims to become an “indispensable contributor to people’s health worldwide” by offering original products of the pharmaceutical business and the nutraceutical business to address both unmet medical needs and yet-to-be-imagined needs as a total healthcare provider which supports daily maintenance and improvement of health and extends from the diagnosis through to treatment of disease.