Reboot for a Strong Sumitomo Pharma
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Position we aspire to establish by 2033
Global Specialized Player
Establish position as
a Global Specialized Player (GSP)
The position the Company aspires to establish by FY2033 is to become a company that strongly turns the “value creation cycle” and continuously translates innovation into real-world solutions focusing on disease fields in oncology, psychiatry & neurology and others, and on modalities such as small molecules and regenerative medicine/cell therapy. By turning the value creation cycle, the Company will strategically deepen and expand these strengths as well as establish a distinctive global presence in order to contribute to the betterment of healthcare and fuller lives of people worldwide.
Initiatives for FY2025 through FY2027
Reboot 2027
Reboot for a Strong Sumitomo Pharma
The Company believes that the period from FY2025 to FY2027 represents a critical phase marked by key milestones toward rebuilding a “value creation cycle,” including revenue base stabilization through the sales growth of three key products and the commercialization of products in the fields of regenerative medicine/cell therapy and oncology. To this end, the Company has formulated “Reboot 2027 - Reboot for a Strong Sumitomo Pharma -"as the activity policy for FY2025 through FY2027, aiming for a resurgence as an R&D-driven pharmaceutical company.
Value Creation Cycle
R&D
Continuously create and bring to market innovative drugs
- Competitive drug discovery research focused on our strong areas and technologies
- Early confirmation of value in small clinical trials
- Maximize value quickly by leveraging alliances
Sales・Expansion of indications
Maximize market value and improved patient outcomes
- Deliver to the world, focusing on the U.S. and Japan
- Establish scientific evidence and become a leader in innovative/groundbreaking drug discovery
Profit acquisition
Continued growth of portfolio brands and expand management resources
- High market share/profit margins
- Accumulate unique data and expertise
Upgrading Technology and Strategies
Deepen and expand R&D infrastructure
- Superior access to information, technology, seeds of drug discovery, and human resources
- Feedback of proprietary data and know-how
Value Creation Cycle
R&D
Continuously create and bring to market innovative drugs
- Competitive drug discovery research focused on our strong areas and technologies
- Early confirmation of value in small clinical trials
- Maximize value quickly by leveraging alliances
Sales・Expansion of indications
Maximize market value and improved patient outcomes
- Deliver to the world, focusing on the U.S. and Japan
- Establish scientific evidence and become a leader in innovative/groundbreaking drug discovery
Profit acquisition
Continued growth of portfolio brands and expand management resources
- High market share/profit margins
- Accumulate unique data and expertise
技術・戦略の高度化
Upgrading Technology and Strategies
- Superior access to information, technology, seeds of drug discovery, and human resources
- 独Feedback of proprietary data and know-how
Our Vision (FY2033 and beyond)
To strongly accelerate the Value Creation Cycle, continuously amplify innovation, and implement it in society
Through the acceleration of the cycle, strategically deepen and expand strengths, and establish a unique global position
Key Initiatives under “Reboot 2027"
Aiming to Rebuild Our Foundation as an R&D-Driven Pharmaceutical Company
The Company will work to establish a P&L base by maximizing the value of existing products, centered on the three key products, and implementing thorough cost management while also maintaining positive free cash flow and securing the next revenue base through strategic selection and concentration within the development pipeline. Furthermore, to restart as an R&D-driven pharmaceutical company, the Company is committed to realizing in-housel innovation in the oncology and regenerative medicine/cell therapy fields as a must-achieve goal. In addition, to continuously create and implement innovations in society, efforts will be made to improve the accuracy of success in R&D.
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Overview of Business Strategies
- Establish a P&L base by maximizing the value of existing products, with a focus on the three key products, and thorough cost management
- Maintain free CF and acquire the next revenue base by selection and concentration of the development pipelines
Maximize the value of existing products
- North America: Maximize sales and product P&L of the three key products
- Japan: Contribute steadily to revenue by expanding sales of existing products + XEPLION®
Thorough cost management
Strengthen the portfolios by selecting internally developed pipelines and pursuing partnering opportunities
- Focus on the two oncology compounds: Establish the next revenue base after the three key products
- Seek partnering opportunities: Maximize value, develop as quickly as possible, reduce investment capital
- Collaboration with RACTHERA: Promote the regenerative medicine/cell therapy business and develop it into the Group’s core business
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Regional Strategies
- Focus on Japan, which has the pharmaceutical business platform including drug discovery research, and North America, the largest market.
- For the organizational operations in Japan and the US, consider the balance between strengthening cooperation and delegating authority according to functional characteristics, while ensuring speed.
Balancing unified group management and local responsivenessEnsuring swift decision-making and executionStrong cooperation among global strategic functions
● Strategy/ Planning / Business Development● Finance● R&D/CMCTimely cooperation for efficiency● Regulatory affairs/reliability/production● IT&Digital● Legal/IP/internal audit/IR● HRFocus on local responsiveness● Sales/marketing
Financial Targets under “Reboot 2027"
Financial Goals
（FY2024～FY2027）
Establish a mid-term revenue base with the three key products and aim for renewed growth with new products.
By FY2027
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Sales of three key products * Converted at the rate of
150 yen per dollar
Expand to 0 billion yen
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Core operating profit excluding one-time factors (from FY2027)
Consistently more than 0 billion yen
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Free cash flow
Maintain profitability
(FY2025–FY2027) →Return to profitability excluding sales-related income (FY2027)
As early as possible
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Interest-bearing debt
Reduce to less than 200 billion less by implementing further measures
With regard to dividend policy, priority will be given to the repayment of interest-bearing debt for the time being and the Company aims to resume dividend payments at an appropriate time.
Reboot 2027