09P.12-13P.14-15P.16-17P.18Message from the President & CEOAs the environment surrounding prescription drugs in Japan has been rapidly changing, it is becoming standard to conduct development of new drugs on a global basis. With the appearance of antibody drugs, dermatological drugs are no longer excluded from this trend. To reinforce early-stage drug development for the enhancement of our pipeline, Maruho is undergoing a dynamic shift of its business model to one based on global collaboration, and promoting active alliances with drug discovery ventures and major global firms. We also aim to make our research and development globally competitive by restructuring our organizations related to business development and research and development, to enable prompt decision making in coordination with management. As for collaboration with overseas firms, we are focusing on Israel, a country boasting high abilities and speed in research and development, where we have established Maruho Israel Innovation Fund GmbH & Co. KG to invest in promising research institutes and ventures overseas, and Maruho Israel Innovation Labs Ltd. to support the investees. So far, we have established a collaboration system to expand our development pipeline, and are currently evaluating and selecting projects from major academic institutions and ventures overseas as in-licensing candidates. To enhance early-stage development in Japan, we opened Maruho Shonan Innovation Lab (MSiL) in 2019 as our next-generation research base. MSiL is engaged in creating new products by establishing industry-academia-government networks and promoting collaborations. At the same time, we are working to establish a system that can handle a wide range of modalities from small molecules to polymer drugs. We also make active investments in the in-licensing of late-stage development drugs to enhance our pipeline while working to maximize the value of existing products by expanding their indications and adding dosage forms.To make our products and manufacturing plants always trusted and chosen by patients, business partners, and other stakeholders, we must build a system to supply safer and more reliable drugs. Understanding that the most important task of a healthcare company is to ensure a stable supply of products of proper quality, Maruho has been advancing internal production of active pharmaceutical ingredients (APIs) of its main products. At the same time, Maruho has decided to make significant investments in the enhancement of equipment at the Hikone Plant and Tateyama Pharmaceutical Factory Co., Ltd., to establish a solid production system composed of the four bases—Hikone Plant, Nagahama Plant, Tateyama Pharmaceutical Factory, and Roman Industries Co., Ltd.In addition to information provision by MRs for medical professionals, Maruho promotes information provision by digital media and various other means for patients and general consumers. In response to concerns that lack of correct understanding about diseases and treatments may lower the QOL of patients, Maruho will continue its commitment to establish close relationships with medical professionals and patients through the provision of correct and useful information.We will globally develop our advanced business models and information provision system which we created in Japan. This strategy is aimed at maximizing our product value through collaborations with partners overseas and contributing to better health for patients around the world. We will focus our efforts on developing and enhancing business bases in the two large markets of China and the United States, with the aim of expanding business opportunities through partnerships and collaborations. We are also building a new development model in which discovered/in-licensed projects will be enhanced and promoted under global cooperation.Create products for the global marketProducts and manufacturing plants that are continuously chosenHigh-quality information provision reflecting the voices of patientsEstablishing processes for providing value in the global marketStrategyStrategyStrategyStrategy12 3 4
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