Medium-Term Business Plan STS2030 Revision(FY2023 – FY2030)

STS2030 title image

This page introduces the medium-term management plan "STS2030 Revision" for 2023-2030.

 

In June 2020, we unveiled the SHIONOGI Group Vision (2030 Vision), setting out what we would like to accomplish by 2030, and formulated STS2030, a strategy to achieve this vision, which we have been implementing since the release of this plan. 

SHIONOGI Group Vision

Building Innovation Platforms to Shape the Future of Healthcare

As Shionogi family we promise to:

  • Imagine new ways to deliver innovation, and catalyze the formation of new healthcare platforms
  • Create innovative products and deliver them worldwide compliantly with high quality at a fair price
  • Embrace social responsibility and contribute to longer, healthier lives everywhere
Shionogi seeks to address the issues facing patients and society by transforming ourselves from a pharmaceutical company that provides only ethical drugs to “a healthcare provider” that provides comprehensive healthcare services and continuously offers new value to society.

Direction for the New Shionogi to Achieve 2030 Vision

Delivering value by providing healthcare as a service
Healthcare as a Service:HaaS

  • Generate new value and solve problems faced by patients and society through collaborative invention with a diverse range of partners
  • Augment the strengths we have acquired through the discovery and development of “medicinal drugs,” and leverage those strengths

 

Continuously enhance our “strengths” as a drug-discovery-oriented pharma company, become the premier partner for other companies/industries for its unique strengths, build new platforms in the healthcare arena, and provide new value to society as a healthcare provider.

Shionogi will work to realize our vision by accepting diversity, without fear of change, and by going beyond our conventional concept to “Transform”.

STS2030 Revision

Our direction we remain unchanged from when we originally formulated STS2030, but the efforts we have made and the lessons we have learned over the past three fiscal years have made the path toward achieving our 2030 Vision even clearer, and we therefore decided to revise STS2030 and to reformulate it into the STS2030 Revision we are now releasing.
STS Phase1 strategy
* Healthcare as a Service: Provide a range of healthcare services in line with customer needs, rather than only providing pharmaceuticals
In the previous STS2030, the five-year period beginning in FY2020 and ending in FY2024 was positioned as STS Phase1, and the period from FY2024 through FY2030 was positioned as STS Phase2. In the STS2030 Revision, however, we will accelerate our growth and transformation plan, completing STS Phase1 ahead of schedule in FY2022 and newly designating the three-year period from FY2023 through FY2025 as STS Phase2.

Reflections on STS Phase 1

In STS Phase 1, we obtained domestic approval of ensitrelvir for COVID-19 treatment, launched products and services other than

prescription drugs, including a vaccine business, and strengthened governance.

Strategy
Strategy2

Overall strategy and KPIs of STS 2030 Revision

The STS2030 Revision has three pillars: " Expansion of new products and new businesses" "Growth of COVID-19 treatment," and "Further growth of HIV business."

STS2030 Revision KPI

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<Shareholders return indicators>

(1) EPS (basic earnings per share)

(2) DOE (dividend on equity attributable to owners of the parent)

(3) ROE(return on equity attributable to owners of the parent)

Three pillars of the STS2030 Revision

In the STS2030 Revision, we consider the following three points to be the growth pillars for realizing the 2030 Vision.

(1) Continued growth of HIV franchise

HIV franchise sales by ViiV Healthcare Ltd. (hereafter “ViiV), particularly of oral two-drug regimens such as Dovato, are seeing robust growth, and the sales of long-acting formulations such as Cabenuva are increasing substantially after strong launches. Going forward, the growth of Cabenuva, a long-acting therapeutic drug, will be accompanied by significant progress in market penetration by Apretude, a long-acting pre-exposure prophylaxis (PrEP) drug. We aim to achieve continued growth for this franchise by discovering and developing new therapeutic/preventive drug candidates, including the next-generation integrase inhibitor S-365598. As a result, we anticipate that any decline in revenue due to the expiration of patents for some HIV products will be much smaller than initially expected, and that we will quickly see re-growth of the franchise.

(2) Continuous growth of COVID-19 treatments

Although the COVID-19 pandemic is coming to an end, the virus continues to mutate and affect the health and lives of many people around the world. We expect the disease to linger, evading immunity through repeated mutations, so we think there will continue to be a need for effective and safe therapeutic agents. We will accumulate new evidence for ensitrelvir and disseminate it globally, while continuing to focus on the creation of new treatments that can be used by more people.

(3) Expansion of new products and new businesses

In the area of the prescription drug business, we plan to launch more than 10 new products from our development pipeline globally by fiscal 2030, and we will continue to grow globally through the growth of existing assets and the introduction of new products. In the vaccine business, we aim to expand globally while building up a track record and strengthening our competitiveness.

Outline of STS Phase 2

Our basic policy of the STS Phase 2 is to achieve global top-line growth and establishment of growth drivers through aggressive investment, especially in the infectious disease area, and we will accelerate global expansion and growth investment based on the following six growth strategies.

 

Shionogi will work on the following social issues.

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Creating value by solving healthcare social issues

Through our business activities, we strive to respond to social issues and unmet medical needs, grow as a company that is essential for society, and share our achievements with our stakeholders. To accomplish this objective, we analyzed factors such as changes in the environment surrounding SHIONOGI, risks and opportunities arising from these changes, and the current issues facing SHIONOGI. This led us to redefine the highest priority tasks (material issues). We will work towards the realization of these goals.

1. Protect people from the threat of infectious diseases

One of the social tasks that we emphasize the most from among the material issues is “delivering freedom from the threat of infectious diseases,” and we view the accomplishment of this task as the mission of SHIONOGI as a leading company in the field of infectious diseases. In STS Phase2, we will be aiming to resolve various healthcare issues in the field of infectious diseases and build a sustainable business model that can ensure profitable growth.

2. Contribute to a healthy and prosperous life

Another material issue that we stress is “helping people to enjoy healthy and comfortable lives.” We will contribute to the realization of a society in which everyone can live life to the fullest and on their own terms by providing products and medical services that go beyond conventional ethical drugs and improving the social environment in the area of QOL diseases, which have a high social impact and are expected to increase in incidence and remain intractable 10 to 20 years from now.

3. Improve access to healthcare

We recognize that “improving access to healthcare,” including pharmaceuticals, is an important issue for many people around the world. By working both internally and in collaboration with various partners, we will contribute to the realization of Universal Health Coverage by bringing about a clearer awareness of responsibility for the health of people around the world, including those in low- and middle-income countries (LMICs).

Strengthen the management base and contribute to a sustainable society

To move into a phase of further growth, we need to transform into a highly productive organization capable of creating new value. In STS Phase 2, the basic policy for strengthening our management foundation will be to create value by changing the structure, changing the process that drives the structure, and developing the human resources that operate the process, as in Phase1.

4. Key Strategic Priorities (Global strategy, investment and financial strategies)

In accordance with the STS Phase2 basic policy, we will formulate and focus on a strategy for global expansion and the investment/financial strategy to support it as “strategies of focus,” and thereby “strive constantly to supply the best possible medicine to protect the health and wellbeing of the patients we serve,” as declared in SHIONOGI Group Heritage (Company Policy of SHIONOGI).

5. Transformation actions (Improving speed, globalizing corporate functions, and realizing DX platform)

To accelerate our global expansion, we need to increase our speed in every aspect of our business. We have already achieved faster and more transparent decision-making by revamping our decision-making processes, and we intend to further improve business speed by adopting more flexible decision-making flows and proactively delegating responsibility and authority for business administration. We will also be stepping up efforts to globalize our corporate functions.

6. Strengthen ESG management and contribute to a sustainable society (human capital management, sustainability)

Our view is that “people are the source of our competitiveness,” and to serve as a model that employees should aspire to emulate, we have established the Shionogi Way: Be the best that you can be to take on new challenges. To ensure that each and every employee grows into a person who embodies the Shionogi Way, we are propagating the SHIONOGI Group Values, which are values that are indispensable for realizing the 2030 Vision, and through, for example, the provision of training, we are helping our people to acquire abilities (capabilities and knowledge) that everyone should possess as well as abilities required for each individual role.

We recognize the importance of promoting initiatives to reduce negative impacts on customers and society in order to achieve both business growth and social sustainability. From the perspective of the importance of our company and the importance of society and the global environment, we recognize that "climate change" and "human rights" are issues that should be addressed in particular, and we are promoting initiatives.

Finance/investment strategy

During STS Phase2, we plan to invest approximately 300 billion yen over three years in R&D, and we will be proactive in making business investments of all sizes after assessing the value of potential deals and projects.
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Press Release

Presentation Materials

Past Medium-Term Business Plan