Issues to be Addressed


Key Issues to be Addressed

In 2021, while the impact of the spread of COVID-19 on the social situation was still unclear, the Group’s business activities were impacted to a certain degree. In the second half of 2021, with the widening of social activity under the new normal environment for activities in many areas, the Group proactively engaged in marketing activities for the new business environment and preparations activities for the launch of new products. On the other hand, the Group strives to continue business activities while ensuring the safety of employees, and maintains a system that is able to stably supply products. The Group will continue to pay close attention to the impact on future business and business results assuming that the situation will be prolonged or become more serious.

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 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 continues to operate with the aim of becoming 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.