Mitsubishi Chemical HoldingsTHE KAITEKI COMPANY

Overview of Business Segments : Health Care Domain

Leveraging the Group’s comprehensive strength and network, we have been providing and developing pharmaceuticals, diagnostic instruments, clinical testing, health support services, pharmaceutical development support services, active pharmaceutical ingredients/ intermediates, and pharmaceutical formulation materials.

Major Businesses and Products

Pharmaceuticals

Fiscal 2016 Revenue

¥423.9 billion

Autoimmune diseases area
Autoimmune diseases area
In the autoimmune diseases area, our company has strong sales foundation based on a trust relationship with medical professionals, which has been established through one of our main products, Remicade (indication: inflammatory autoimmune diseases such as rheumatoid arthritis). We will continue to maintain the largest market share in this area by maximizing the advantages of both Remicade and Simponi (indication: rheumatoid arthritis, and others).
Remicade Simponi Imusera
Diabetes and kidney diseases area
Diabetes and kidney diseases area
In the diabetes and kidney diseases area, we will establish our presence by obtaining evidence for Tenelia and Canaglu (indication: type 2 diabetes mellitus) and by expanding sales channels.
Tenelia Canaglu
Central nervous system diseases area
Central nervous system diseases area
In the central nervous system diseases area, the antidepressant Lexapro was additionally approved for the treatment of social anxiety disorder in November 2015. Centering on its effect on anxiety, we will further promote this drug, reinforcing the sales base in this area for the launch of new drugs in the future.
Lexapro Radicut
Vaccines
Vaccines
Regarding vaccines, we reached a basic agreement on the foundation of BIKEN Co., Ltd. (joint venture for the production of vaccines) with the Research Foundation for Microbial Diseases of Osaka University in November 2016 with a plan to start operation in September 2017. Now, we will also strengthen cooperation in production, enhance the production platform for which a larger supply is required and contribute to the stable supply.
Influenza vaccine Tetrabik Varicella vaccine

Life Science

Fiscal 2016 Revenue

¥123.1 billion

Business for pharmaceutical development support and clinical testing
Business for pharmaceutical development support and clinical testing
Providing comprehensive solutions including clinical testing and support for testing operations in the clinical testing area, we have been contributing to the medical treatment and prevention/early detection of diseases. We also contribute to international sporting events as the only doping control laboratory in Japan and the first in Asia that is officially accredited by the World Anti-Doping Agency.
Clinical testing Diagnostic reagents and instruments Pharmaceutical development support
Business for capsules and pharmaceutical processing equipments
Business for capsules and pharmaceutical processing equipments
We provide comprehensive solutions based on our production technology accumulated for many years, such as high quality and functional hard capsules and pharmaceutical processing equipments. We have the top global share in HPMC* capsules made from plant-derived raw materials, as the first to successfully commercialize them in the world.
* hydroxypropyl methylcellulose
Capsules Pharmaceutical processing equipments
Self-health check services
Self-health check services
We developed Jibun Karada Club, a blood test kit with finger prick by customers at drugstores and contribute to maintain people's health, in addition to other treatment products.
Jibun Karada Club

SWOT analysis

SWOT analysis

Health Care Domain APTSIS 20

Policies
Worldwide growth in pharmaceutical business Establish and improve the health and medical business utilizing ICT and the regenerative medicine products
Key Strategies
■Promote the development of overseas pharmaceutical business mainly in the U.S.
■Strengthen capabilities for drug discovery
■Maximize values of new drugs and priority products by strengthening capabilities of IKUYAKU (drug fostering and evolution) and marketing
■Expand the healthcare and medical business utilizing ICT
■Expand the regenerative medicine business
■Improve profitability and global expansiond of the capsule business
Plan Values

Growth Strategies in Pharmaceutical Business

Our target for 2020 consists of four strategic priorities: maximizing the value of pipelines, strengthening capabilities of IKUYAKU (drug fostering and evolution) and marketing, accelerating U.S. business development and reforming operational productivity. We will implement strategic investment of more than 400 billion yen in R&D over 5 years, of more than 200 billion yen on the U.S. business expansion such as M&A, and of 100 billion yen on licensing-in and others, aiming to develop a business platform and to establish product lineup in the open shared business. In domestic market, we will enhance area marketing and initiate the development of digital marketing to respond to changes in the Japanese medical environment, in order to strengthen domestic marketing as the fundamental business. With this strategy, we aim to increase domestic revenue to 300 billion yen, and achieve the product ratio of 75% for new drugs and priority products out of total domestic sales in fiscal 2020.

Revenue in Japan (image illustration)

Growth Strategies in Life Science Business

We will expand into the regenerative medical business as a next-generation healthcare business, aiming to obtain early approval for a regenerative medical product using Muse cells. Muse cells were discovered by the team led by Professor Mari Dezawa of Tohoku University in 2009. Muse cells exist in human body, such as bone marrow and skin (dermis), and these stem cells can be differentiated into various cells which build parts of the body.
Muse cells migrate to a damaged organ in order to repair the cells when injected into human body. Muse cell preparations that we are currently under development have the following advantages:

■Intravenous infusion decreases the physical burden
■Less likely to form tumors
■Single Muse cell preparation can be applied to multiple diseases

We are currently investigating the efficacy and safety in animal studies, planning to initiate clinical testing for patients with acute myocardial infarction in fiscal 2017.

Illustration of application to myocardial infarction

Establish a sustainable growth platform by expanding business in the U.S. Accelerate business in the U.S. with the approval of Radicava, first self-promoting product in the U.S.

  • 1.Numerical target (revenue in the U.S.)

    Fiscal 2020 Target of business scale

  • 2.Market trends

    The scale of the global pharmaceutical market is about 100 trillion yen. The U.S. is the largest pharmaceutical market in the world and will be the same in the medium-to long-term. It has outstanding ability to discover pharmaceuticals as well. MTPC is accelerating business structural reform there to achieve sustainable growth of pharmaceutical business.

    Scale of the global pharmaceutical market
    Copyright © 2017QuintilesIMS
  • 3.Growth Strategy in the U.S.

    – to achieve the target of the U.S. business

    Radicava was approved by the U.S. FDA for the treatment of amyotrophic lateral sclerosis (ALS) on May 5, and started promotion in August, 2017. We will expand our business there based on the sales of Radicava. We will obtain new products in the nervous system disease area and autoimmune disease area, following Radicava by M&A* or from other companies, and will also develop our own products and plant-derived influenza vaccine, in order to strengthen our product lineup.

    * In July 2017, MTPC reached a definitive agreement with NeuroDerm Ltd. (Israel), which has research infrastructure for Parkinson’s disease and others, pursuant to which MTPC will acquire all of their outstanding shares. NeuroDerm will become a whollyowned subsidiary in October this year.

    Strategic Investment of more than 200 billion yen to achieve revenue of 80 billion yen in the U.S. in fiscal 2020
    Solutions for social and environmental issues

    Establishment of Searchlight Support

    Mitsubishi Tanabe Pharm America, Inc., a distributor of Radicava in the U.S., will work to provide Radicava to all patients who need it, and will also establish Searchlight Support for supporting the patients to whom Radicava was prescribed. Searchlight Support provides treatment management system suitable for each patient, support for obtaining insurance reimbursement and 24-hour clinical nurse hotline support.

    Solutions for Environmental and Social Issues