Here are answers to some of the questions we are frequently asked.
About business performance
Ｑ: Do you consider the entry of original drug manufacturers and foreign manufacturers to the generic drug market as a threat?
In terms of size and marketing power, there is little doubt that their entry into the Japanese generic drug market could be a threat.
A new entrant into the Japanese generic drug market, however, is likely to face difficulties in gaining market share unless it can meet a variety of requirements, such as, among other things, facilities to produce drugs at a low cost, development of domestic distribution networks and product line-up.
We have earmarked 8.5 billion yen for capital investment for the current fiscal year (from April 1, 2012 to March 31, 2013).
The construction of our new plant “Pyramid” which started in April 2012 in Namerikawa, Toyama Prefecture, with the completion expected in February, 2013 (at the total cost of 4.5 billion yen) will expand our production capacity considerably.
We plan to place products in 20 ingredients and 39 standards during the fiscal year on the market.
June, 2011:Registered products for 15 ingredients and 20 standards in the National Health Insurance (NHI) Drug Price Standards.
November, 2011:Registered products for 14 ingredients and 27 standards in the NHI Drug Price Standards.
June, 2012:Registered product for 11 ingredients and 19 standards in the NHI Drug Price Standards.
December, 2012:Registered products for 10 ingredients and 18 standards in the NHI Drug Price Standards
June, 2013:Registered products for 10 ingredients and 19 standards in the NHI Drug Price Standards.
December, 2013:Registered products for 10 ingredients and 20 standards in the NHI Drug Price Standards.
About marketing channels
Our medical drugs are sold to medical institutions and pharmacies through three marketing channels: large wholesalers covering wide areas, our marketing subsidiary and other dealers, and direct sales to medical institutions. Our primary channel is wholesalers, accounting for approximately 80% of sales.
Our financial strategy focuses on strengthening and expanding our financial capacity. Our dividend policy is to return profits to shareholders according to business performance.