Contact Us

Long-Term Business Plan

2031 Long-Term Vision and Strategy

In the past, KAKEN formulated a series of medium-term business plans, but in 2022, we decided to set out a long-term business plan aimed at implementing strategic initiatives that would enable to better respond to the changes taking place in the pharmaceutical industry.
The external environment of the pharmaceutical industry is changing dramatically with the tightening of healthcare budget, the increasing difficulty and higher costs of drug development, and supply chain issues, among others. With the external environment undergoing such major changes, we will implement a vision and strategy for 2031 to apply KAKEN's strengths to our mission of offering patients new treatment options over a longer term and globally.

VISION

VISION
  • 1.A company that contributes to longer healthy life expectancy by developing and supplying innovative new drugs in a speedy manner
  • 2.A research-based pharmaceutical company with a global presence, primarily in the areas of dermatology and orthopedics

Strategy for Achieving the Vision

“3Xs” ～3つのTransformation～

1st X R&D Transformation
  • 1.Utilize KAKEN’s own research base
  • 2. Expand into new therapeutic areas
  • 3.Take on the challenge of new modalities
  • 4.Actively invest in research and development
2nd X Overseas Expansion Transformation
  • 1. Enhance line-up of global products from in-house drug discovery and in-licensing of products already commercialized or under development
  • 2. Maximize the value of global products through our own development and commercialization overseas
3rd X Management Base Transformation
  • 1.Develop human resources capable of pursuing transformation as professionals andimprove the working environment
  • 2.Create a corporate culture capable of continuous transformation by utilizing data and digital technology
  • 3.Maximize product value and establish reliable and high-quality manufacturing capabilities from the viewpoint of “patients first”

Presentation materials for Long-Term Business Plan 2031


*Please refer to the financial results presentation materials for the progress of each year.

Partial Revisions of Long-Term Business Plan 2031（April,2025）

Based on recent progress and changes in the external environment, we have partially revised and added to our targets through fiscal 2031.

Analysis of the Current Status

Three years have passed since the formulation of the Long-Term Business Plan 2031.
Need to respond to internal and external changes in the business environment.

Changes in the business environment＊

  • Increase in number of in-licensed products and projects under development
  • Early realization of derivation
  • Progress in overseas expansion
  • Progress on covering the patent cliff of Clenafin
  • Impact of the "Elective Medical Care" system on long-term listed drug
  • Soaring R&D costs
  • Intensifying competition in the in-licensing and M&A market
＊for the achievement of the long-term business plan positive negative

Concept of the Revision

　　
  1. Increase strategic investmentfor continuous launch of innovative new drugs to further increase corporate value.
  2. Maintain financial discipline taking into account increasing volatility and uncertainty in financial performance and cash flows.
  3. Enhance shareholder return for the stakeholders.

Revision and Addition to Strategies

Additional measures and revisions to further pursue Three Transformations

Items Priority Measures Addition and Revision
1st X
  • Secure pipelines capable of launching eight new products over the 10 years of the plan
    (maintain at least six pipelines in Phase I or later phases at any given time).
  • Secure at least one new licensed products or new marketing alliance every year.
 Revision
  • Secure pipelines capable of launching eight new products over the 10 years of the plan
    (maintain at least eight pipelines in Phase I or later phases at any given time).
  • Secure at least one new licensed products or new marketing alliance every year expanding global products as target.
2nd X
  • overseas sales ratio of 25% or higher.
  • Expand global products.
  • Establish our own overseas development capabilities.
  • Establish global manufacturing and commercialization structure.
 Addition
  • Succession and stable operation of FYARRO® business.
  • Consideration of European expansion policy.
  • Procure products for overseas expansion in anticipation of synergies with Aadi.
3rd X
  • Increase corporate value by establishing a strong organizational base that can flexibly respond to change and by improving operational efficiency.
Addition,Specified
  • Actively recruit mid-career professionals with advanced expertise.
  • Introduce Employee Stock Ownership Plan (J-ESOP).
  • Maximize products value through optimizing medical information provision activities using Customer Relationship Management

Revision of Amounts of Strategic Investments

Spent approximately ¥72 billion in strategic investment for the past three years.
Allocate ¥260 billion by FY2031 increase by ¥60 billion from initial plan.

Revision of Amounts of Strategic Investments

Revision of Shareholder Return Policy

Minimum of ¥190 per share dividend taking into account dividend payout ratio of 30％or higher and shareholder return ratio of 50％or higher.

*Looking forward for adopting IFRS, the Company will not “calculate net income attributable to owners of the parent excluding the effect of one-time charges and other items related to strategic investments”.

Others

Consider changing accounting standard to IFRS.

Presentation materials for Partial Revisions of
Long-Term Business Plan 2031


*Please refer to the financial results presentation materials for the progress of each year.

PAGE TOP