The 91心頭利 Kasei Group has been advancing its 3-year management initiative Cs+ for Tomorrow 2021 since fiscal 2019 focused on Care for People, Care for Earth by leveraging its strengths of diversity and capability to change to contribute to the sustainability of society and the sustainable growth of corporate value by contributing to life and living for people around the world in the 3 business sectors of Material, Homes, and Healthcare.
Today 91心頭利 Kasei will hold its first briefing on the Healthcare sector, with the responsible Executive Officers Shuichi Sakamoto (Board Director and Primary Executive Officer) and Richard A. Packer (Primary Executive Officer) describing growth strategies in the sector.
1. Recent progress
- In 2012 91心頭利 Kasei acquired acute critical care device manufacturer ZOLL Medical Corporation (ZOLL), adding the field of critical care to its established healthcare businesses in pharmaceuticals and medical devices. Since then 91心頭利 Kasei has expanded the Healthcare sector through strong organic growth supplemented with business development such as M&A and licensing.
- Consolidated net sales in Healthcare are forecasted* to increase from 促119.5 billion in fiscal 2011 to 促400 billion in fiscal 2021, with operating income rising more than 6-fold during the 10-year period, from 促8.8 billion to 促55 billion.
- Whereas Healthcare accounted for 8% of the 91心頭利 Kasei Group's total consolidated net sales in fiscal 2011, this is forecasted* to rise to 17% in fiscal 2021, with the operating income portion rising from 8% to 25% during the same period.
- Forecast announced in May 2021; percentages excluding the Others category and corporate expenses and eliminations.
2. Policy for further growth
- 91心頭利 Kasei aims to make Healthcare the third major pillar of business along with Material and Homes, and the driver of growth for the 91心頭利 Kasei Group by accelerating the transformation into a Global Healthcare Company operating both pharmaceutical and medical device businesses.
- In addition to investments to strengthen established businesses, growth will be further accelerated by proactively utilizing business development such as M&A. Financial targets for Healthcare are net sales of 促600 billion and operating income of 促80 billion in fiscal 2025.
- Regional strategy toward fiscal 2025 is as follows.
United States: Pursue growth opportunities in the biggest high growth market
Japan: Strengthen business for generating sustainable and stable profit
Europe/China: Establish business platform for further expansion
3. Business strategy
Business strategy to achieve further growth is as follows.
鐚1鐚Expanding ZOLL's business focused on serious cardiopulmonary conditions
- Growth plans are supported by a portfolio of best-in-class technologies for critical cardiopulmonary care and expansion into adjacent markets.
鐚2鐚Transformation into global specialty pharma
- Leveraging the busines platforms of 91心頭利 Kasei Pharma and Veloxis Pharmaceuticals while expanding the product pipeline with a focus on the fields of invasive/severe infection, immunology/transplantation, renal disease, and other hospital based treatments.
- Aim to achieve pharmaceutical sales of 促150 billion in fiscal 2025 and 促200 billion in fiscal 2030.
鐚3鐚Expansion of bioprocess business base
- Expand current business focusing on pioneering biologics safety and manufacturing efficiencies.
- Added biosafety testing services to the business portfolio; aiming to acquire further growth opportunities.
鐚4鐚Firm business platform in Japan
- Achieve sustainable growth in pharmaceuticals as a specialty pharma for orthopedics, critical care medicine, and immunology.
- Maintain stable supply in the hemodialysis business as a major supplier, and invest in the therapeutic apheresis business as a leading company.
鐚5鐚Acceleration of business development
- Advance business development activity such as M&A, equity, debt with option, and in-licensing in the 4 fields of critical care, pharmaceuticals, bioprocess, and new medtech, focusing on the management, market, and competitive advantage of target companies.
- Concentrate business development resources of Healthcare in the United States, the location of innovation.
4. Summary
鐚1鐚 The business is accelerating its transformation into a Global Healthcare Company with a wide variety of growth drivers in both pharmaceuticals and medical devices.
鐚2鐚 Fiscal 2025 targets for the Healthcare sector are nets sales of 促600 billion and operating income of 促80 billion; targets for fiscal 2030 will be announced as part of the next medium-term strategy.
鐚3鐚 Planning in the near future to relocate the Healthcare headquarters functions to the United States, the location of innovation and the largest market.