ASK A HD
REPORT

2023

Integrated Report April 1, 2022 March 31, 2023
ASKA Pharmaceutical Holdings Co., Ltd.

Total Healthcare Company
with a Strong Foundation
as a Specialty Pharma Company

Contents
Value Creation Story
2	Vision/Corporate Message/Corporate Philosophy
4

Importance of Female Healthcare and Social Issues

6

History of Value Creation

8	At a Glance
10	Value Creation Process
12 	Message from the President
16 	Material Issues

Explanation of Strategy
18	ASKA Pharmaceutical Holdings’ Medium-Term

Management Plan 2025
20

Financial and Capital Strategy

22

Overview of ASKA Pharmaceutical Holdings

24

Business Conditions  24 ASKA Pharmaceutical  30 ASKA Animal Health  32 ASKA Pharma Medical

Foundation for Value Creation
34

Human Resources

40

R&D for Sustainable Growth42

Reliability Assurance/Sales

43

Activities of Health Lab Mint+ for Women’s health

44

Messages from Outside Directors

46	Corporate Governance/Compliance/

Risk Management
52

Board Members and Corporate Officers

54

Environment

Data Section
56

11-Year Summary of Consolidated Financial Results

58

Stakeholder Communication – Editorial Postscript

59

Company Information/Shareholder Information

Editorial Policy
ASKA Pharmaceutical Holdings Co., Ltd. issues the ASKA HD Report as an Integrated Report (Annual Report) to communicate
messages from management on the Company’s management strategies and priority issues. It also includes information on the
Company’s environmental, social and governance (ESG) initiatives and finances. Information based on the seven core principles
of ISO 26000, the international standard for social responsibility, and its classifications, is presented on the Company’s website.
ASKA HD REPORT 2023 introduces the initiatives of ASKA Pharmaceutical, ASKA Animal Health and ASKA Pharma Medical
under the theme of clarifying and promoting a better understanding of the strengths of ASKA Pharmaceutical Holdings.
In producing this report, we narrowed down the most important information, based on the opinions and inquiries of our
stakeholders. We hope this report will help promote dialogue with our stakeholders.

Referenced Guidelines and Frameworks• GRI Standards• IFRS Foundation Integrated Reporting Framework• ISO 26000 Guidance on Social Responsibility• Ministry of Economy, Trade and Industry, Guidance for Integrated Corporate Disclosure
and Company-Investor Dialogue for Collaborative Value Creation• Ministry of the Environment, Environmental Reporting Guidelines (2018)• Recommendations of Task Force on Climate-related Financial Disclosures (TCFD)(Final Report), and others

Reported Matters• Period: April 1, 2022 to March 31, 2023 (includes some information from outside the period)• Scope: ASKA Pharmaceutical Holdings Co., Ltd. and Group companies
Note: In principle, this report covers the activities of the ASKA Pharmaceutical Holdings Group. However, when activities and data are for
ASKA Pharmaceutical Co., Ltd. (non-consolidated), “ASKA Pharmaceutical” is indicated.

Note on Forward-Looking Statements in This Report
Information on the Group’s business outlook and other forward-looking statements presented in this report are based on the
judgment of the Group’s management, which relies on various information at the time of publication. Actual results may differ
significantly from the outlook presented due to changes in market trends, economic conditions or other factors.
ASKA HD REPORT 2023

1

VisionA Total Healthcare Company with a Strong Foundation as aSpecialty Pharma Company
ASKA Pharmaceutical Holdings Co., Ltd. was established in April 2021, marking a major step forward.
Under the five-year Medium-Term Management Plan 2025, we will implement seven strategies based on
the three foundations of “specialty,” “ability to create,” and “social contribution.” In doing so, we aim
to become a total healthcare company that focuses on prevention, testing and diagnostics, treatment,
and prognosis.

Corporate Message

For a Healthy Tomorrow and Future.
We will use our accumulated expertise and knowledge in specialty areas to build a society where
women can shine even more brightly, and to improve animal welfare. Based on our business as a
specialty pharma company, we will promote environmental, social and governance (ESG) initiatives,
and take on the challenge of helping to realize a prosperous society, while the animal health businessand testing business exercise synergies.

Corporate Philosophy

Contribute toward the improvement of people’s healthand progress in society through the development ofinnovative products
Since our founding in 1920 as a pioneer in hormone preparations, we have unerringly continued on ourjourney, while always keeping in mind our essential mission as a company that is directly linked to lifeand health. Backed by the drug discovery capabilities we have developed over our century-longhistory, we will adapt to the changing times and environment as we continue contributing to society by
responding to diverse needs.

2

ASKA HD REPORT 2023

ASKA HD REPORT 2023

3

Value Creation Story

Importance of Female Healthcare and Social Issues
Conditions and diseases that only women have to deal with, such as uterine fibroids, endometriosis, and dysmenorrhea,
these days experience many more menstrual cycles during their lifetime than in earlier times. With the advancement ofbirths during a woman’s lifetime has more than halved, falling from a historical level of five to the current average of two.
450, an increase of roughly nine times. Women who work have to cope with various conditions and disorders related tolabor loss of ¥491.1 billion. ASKA’s approach is to look at prevention, testing and diagnosis, treatment, and prognosis as

Social Issues We
Female Diseases (Number of cases)
Uterine fibroids (Million patients)

2.25 million
2.28
2.09

Endometriosis (Million patients)

1 million

Dysmenorrhea (Million patients)

1.96 million

2.25
1.96
1.79
1.46

0.80

2020

2021

2022 (Year)

2020

0.93

2021

1.00

2022 (Year)

2020

2021

2022 (Year)

Source: JMDC Claims Database(Expanded estimates from electronic receipt data, 12-month period from January to December each year)

Patient Journey
Testing anddiagnostics

Prevention· D isseminating health information through Health Lab Mint for· U nique high-sensitivity measurement technology using· H elping to improve health literacy· P roviding opportunities for women to make choices for a healthy life
· P roviding oral contraceptives and emergency contraceptives to· U ltra-high-sensitive estrogen measurement· H air/nail stress hormone level test kit· S upport for early detection/treatment+

Women’s healthprevent unwanted pregnancies

4

ASKA HD REPORT 2023

LC-MS/MS** Liquid chromatography/tandem mass spectrometryaffect a growing number of women worldwide. There are several reasons for this increase. One reason is that women
women in society, there has been a trend toward marrying and giving birth later in life. In Japan, the average number of
As a result, the number of menstrual cycles in a woman’s lifetime has in turn risen dramatically, from 50 (many years ago) tomenstruation and are often unable to perform at their best. In Japan, this has been reported to result in an estimated
we work to help resolve these social issues.

Aim to Help Resolve
Annual Labor Loss due to Women’s Menstrual Symptoms

491.1

¥

billionSource: Tanaka E., Momoeda M., Osuga Y. et al. Journal of Medical Economics 2013;16 (11): 1255-1266

Treatment· P roviding a wide variety of medicines for women’s life stages· S table supply of effective and safe pharmaceuticals· A ddressing unmet medical needs· H elping to promote women’s advancement

Prognosis· H elping to improve women’s quality of life
· H elping to improve health literacy· H elping to extend healthy lifespans· S olving health issues by promoting Femtech

ASKA HD REPORT 2023

5

Value Creation Story

History of Value Creation
Since our founding in 1920 as a pioneer in hormone preparations, we have unerringly continued on
our journey, while always keeping in mind our essential mission as a company that is directly linked
to life and health. In 2021, we transitioned to a holding company structure, and took a new step
toward the next 100 years. We will continue to respond to the changing times and environment,
and contribute to society as we evolve into a total healthcare company.

1955 – 2005

Became a company that makes
wide-ranging contributions to society

1920 – 1955

After the postwar reconstruction period, the company worked
to modernize its management through organizational reforms,
expansion of its sales and production systems, reorganizationof its research functions, and reinforcement of its advertising
activities. In addition to entering the field of veterinary
pharmaceuticals, the company also strived to diversify its
business and worked toward corporate growth in the midst ofan era of rapid economic growth.

Took our first step as a pharmaceutical company
In 1920, Yasohachi Yamaguchi established Teikoku Hormone
Research Institute. It began the research, development,
manufacture and sales of hormone preparations based on theunique idea of creating useful medicines from animal organs.
Although the company experienced hardships such as theGreat Kanto Earthquake, and the loss of its head office andfactory during the Second World War, it was rebuilt under anew organizational structure, and listed its shares on theTokyo Stock Exchange in 1955.
Launched in 1921
Male gonadal hormone agent

Launched in 1922
Hypothyroidism agent

SPERMATINTHYRADIN

Launched in 1981
Benign prostatic hyperplasia
and prostate cancer agent

Launched in 1986
Gastritis and gastric ulcer agent

ALTAT

PROSTAL

Launched in 1999
Low-dose oral contraceptive

ANGE

Launched in 1926
Posterior pituitary hormone agent

ATONIN

1945
Women’s suffragein Japan

4,929

Net sales (Millions of yen)

(FY)

1920

Line item
Fiscal year-end

6

ASKA HD REPORT 2023

0.038

4.115

294

1929

1940

1950

Sales profit
Six-month settlement period(Two six-month periods were combined
for the data for years 1930-1937)

Product proceeds

Eight-monthsettlement period

Product proceeds
Twenty-four-monthsettlement period

Four-month settlement period

940
1960

1970
Net sales

Ten-month settlement period

2021 –
Aim for further growth
ASKA Pharmaceutical Holdings’ Medium-Term Management
Plan 2025 was launched in 2021. In conjunction with theshift to a holding company structure, the Company not only
aims to build a flexible organization that is capable of swift
decision-making, but also to achieve further sustainablegrowth for the entire Group by further strengthening its
governance structure.

2005 – 2021
Formation of ASKA Pharmaceutical Co., Ltd.
In 2005, ASKA Pharmaceutical Co., Ltd. was established to develop
and market new drugs, specializing in the three priority areas of internal
medicine, obstetrics and gynecology (Ob/Gyn), and urology with theaim of becoming a competitive specialty pharma company. The company
took on challenges for the next stage, such as strengthening efforts
for generic drugs that meet the needs of the times.
Launched in 2011
Hyperlipidemic agent

Launched in 2014
Antihypertensive agent

Launched in 2016
Hepatic encephalopathy agent

LIPIDILCANDESARTAN “ASKA”

RIFXIMA

Launched in 2014
Endometriosis, uterine fibroids,and prostate cancer agent

Launched in 2016
Infertility agent

Launched in 2018
Dysmenorrhea agent

LUTEUM

FREWELL “ASKA”

LEUPRORELIN “ASKA”

Launched in 2019
Uterine fibroids andendometriosis agent

FY2022RELUMINA¥60,461 million

2022

Launched in 2021
Hair hormone levelmeasurement kit

Dihydrotestosterone

Launched in 2021
Feline hyperthyroidism agent

THYLOBLOCK

Enforcement of Revised
Act on the Promotionof Women’s Active
Engagement inProfessional Life

45,849

1986

2016

Enforcement of
Equal Employment
Opportunity Act

24,3901975

23,537

Enforcement of Act on
the Promotion of Women’s
Active Engagementin Professional LifeInternational
Women’s Year

Launched in 2022
Canine hyperadrenocorticism agent

Trilostane tablet “ASKA”

12,4091992

Launched in 2022
Dysmenorrhea agent

Enforcement ofChildcare Leave Act*

DroEthi “ASKA”

Launched in 2023
Hair and nail stresshormone level test kit

Cortisol*C urrently Act on Childcare
Leave/Caregiver Leave

1980

1990

2000

2010

2020

Net sales
Six-month settlement period

Consolidated accounting(Merged with Grelan Pharmaceutical Co., Ltd. in October 2005)

ASKA HD REPORT 2023

7

Value Creation Story

At a Glance
ASKA Pharmaceutical Holdings’ business operations include a pharmaceuticals business, an animal
health business, and a testing business. Rather than focusing solely on promoting each businessindividually, we are using alignment between businesses to drive synergy that will maximize revenue.
Here we highlight our initiatives in female healthcare, a key focus area in the pharmaceutical business,
which accounts for approximately 90% of the Group’s net sales.

Net sales in FY2022¥

60,461 million
Pharmaceutical Business: Main Target Diseases
Internal Medicine(Gastroenterology and Thyroid)∙ Hepatic encephalopathy∙ Hyperthyroidism∙ Hypothyroidism

Obstetrics and Gynecology (Ob/Gyn)∙ Uterine fibroids∙ Endometriosis∙ Dysmenorrhea∙ Menstrual disorders∙ Contraception∙ Emergency

Urology

contraception∙ Benign prostatic hyperplasia∙ Prostate cancer

Livestock and Fisheries∙ Pharmaceuticals for∙ Antibacterial∙ Gastrointestinal∙ Antiparasitic∙ Pharmaceuticals∙ F eed additives∙ Mixed feed
∙ Feed materials

breeding

pharmaceuticals
affecting metabolism∙ Antibiotics

pharmaceuticals
pharmaceuticals

Companion Animals∙ Cardiovascular pharmaceuticals∙ Pharmaceuticals affecting metabolism∙ Antiparasitic pharmaceuticals∙ Topical pharmaceuticals∙ Dietary supplements∙ Skincare
Animal Health Business: Main Products
8

ASKA HD REPORT 2023

∙ Infertility∙ Imminent miscarriage/
premature birth∙ Labor induction∙ Menopause∙ Iron deficiency anemia∙ STD/Infection

Microdetermination of
Endogenous Hormones∙ H igh sensitivity measurement using LC-MS/MS(Optimization of measurement conditions, separation
and refinement techniques, derivatization)

 ulti-item simultaneous steroid hormone∙Mmeasurement∙ Ultra-high-sensitive estrogen measurement

Measurements Using Non-Invasive
Samples (Hair, nails, etc.)∙ Hair hormone level measurement kit–DHT(androgenetic alopecia)∙ Hair hormone level measurement kit–testosterone(male menopausal disorder)∙ Hair stress hormone level testing and diagnostics
kit–cortisol∙ Nail stress hormone level testing and diagnostics
kit–cortisol

Testing Business: Main Services and Products

ASKA Pharmaceutical—a Focus on Women’s Healthcare

Ob/GynFemale Healthcare Research

Leading company
No. 1 domestic market share*
In the second half of FY2022, we achieved thehighest sales in the Ob/Gyn field in Japan. We
are promoting a variety of initiatives in addition
to pharmaceuticals, including disseminating
information on women’s health.
* Company estimates

100 years
Since our founding in 1920, we have usedhormonal research to address female healthcare.
We will continue creating a wide variety of drugs
in line with the needs of the times so that we cancontinue contributing to women’s health.
See pages 6-7 for details.

See page 24 for details.

Share of Thyroid Products Market

95%

R&D Expenses

4.2 billion¥

The continuous development of our businessdraws on our 100 years of experience andexpertise in the thyroid area. We will strive toensure quality and stable supply, continuing tocontribute to society as a leading company in the
thyroid area.

We are a pharmaceutical manufacturer thatdevelops new drugs with a focus on the threepriority areas of internal medicine, Ob/Gyn, andurology. We will work with companies in Japan andabroad, accelerating open innovation to provide
innovative new drugs.

See page 27 for details.

See pages 40-41 for details.

Uterine Fibroids and Endometriosis
Agents (FY2023 Net Sales Forecast)10.0 billion¥

Diversity & Inclusion

20.8%

Percentage of Female Manager Candidates

RELUMINA, a uterine fibroids and endometriosis
agent, is a growth driver. In the fifth year since its
launch in 2019, it is expected to reach annual salesof ¥10.0 billion. We expect it to meet its mediumterm management plan target ahead of schedule.

We believe that achieving sustainable growth andenhancing corporate value depend on respecting
diverse values. We aim to create a workplaceenvironment in which all employees, regardless ofage or attributes, can play an active role.

See page 27 for details.

See page 36 for details.

ASKA HD REPORT 2023

9

Value Creation Story

Value Creation Process
ASKA Pharmaceutical Holdings aims to become a total healthcare company with a strong
foundation as a specialty pharma company through its pharmaceutical business, animal healthbusiness, and hormone testing business, based on ASKA’s DNA, the source of its growth for over
100 years. Through this value creation cycle, we will contribute to the resolution of social issues
in the field of healthcare.

Social Issues

Business

Input

Financial capital
Net sales: ¥60.4 billion
Operating profit margin: 8.4%

Stable supply ofeffective and safe
pharmaceuticals

ROE: 8.2%

Manufactured capital
Capital expenditures:¥1.2 billion

Contributing to
women’s advancement
in society

Addressing unmet
medical needs

Production base: Iwaki Factory

11 material
issuesIntellectual capital
R&D expenses: ¥4.2 billion

Pages 16-17

Contribution to
women’s healthContribution toanimal health, etc.

Animal health

Prognosis

Natural capital
CO2 emissions: 10,780t-CO2
Electricity usage:

10,702 thousand kWh
Water usage:
138.73 thousand km³

Social capital
Main offices: 23 locations

PharmaceuticalBusiness
Internal medicine
Ob/GynUrology
Pages 24-29

Treatment

Extending healthy
lifespans
Human capital
Number of employees: 747(Consolidated)

Thorough corporate governance andCorporate Philosophy: Contribute towardand progress in society through the
10

ASKA HD REPORT 2023

ModelOutput / Outcome

Economic Value

VisionFY2025 targets(Consolidated)

Prevention

Net sales: ¥70.0 billion
Operating profit margin: 8%
ROE: 8%

Animal HealthBusiness

Social Value

Pages 30-31

Stable supply of high-quality
pharmaceuticals

Total Healthcare Company
with a Strong Foundation
as a Specialty
Pharma Company

Promotion of drug discovery
through open innovation

Testing
Business

New initiatives and value
provision for total healthcare

Pages 32-33

Testing/Diagnostics

Improving women’s quality of lifeand promoting their advancement
Coexistence between people
and animals
Improving health literacy
Preventative medicine/Improvementof pre-symptomatic statescompliance/Sustainable ESG management
the improvement of people’s healthdevelopment of innovative products
ASKA HD REPORT 2023

11

Value Creation Story

Message from the President
Backed by drug discovery capabilities built up over 100
years and an organizational culture that nurtures
innovation, we are becoming a total healthcare company.
The businesses of ASKA Pharmaceutical Holdings are growing steadily, even amid the pharmaceuticalindustry’s increasingly severe business environment. The main initiatives of Medium-Term Management
Plan 2025 have begun to bear fruit, with sales reaching record highs for two consecutive fiscal years. In
this section of the report, President Yamaguchi explains the challenges of FY2023, which marks the
midway point of the medium-term management plan. He also outlines ASKA’s new approaches to its
distinctive material issues of “contribution to women’s health” and “contribution to animal health,” andthe Group’s unique strengths and sources of motivation.

Takashi Yamaguchi
President, Member of the Board of
Directors, Representative Director
ASKA Pharmaceutical Holdings

12

ASKA HD REPORT 2023

Toward Sustainable Growth— What is the focus for ASKA Pharmaceutical Holdings in terms of sustainablegrowth, and what do you see as your mission as a top member of management?
We are currently on track to achieve our vision for 2025

through advanced drug discovery,” “overseasof becoming a total healthcare company with a strong

operations,” and “provide new value to realize totalfoundation as a specialty pharma company. To achieve

healthcare.” Collaborating not only with companies inthis vision, we are promoting seven strategies based

the same industry but also those in other industries

on the three pillars of “specialty,” “ability to create,”

will therefore be key. We are actively promoting openand “social contribution.” We recognize that ainnovation with this in mind.

particularly important element in achieving sustainable

I recognize that my mission is to lead the Group in

growth is specialty. In the Group’s core pharmaceuticalenhancing quality, as a corporate group, while growing

business, we are focusing on the three priority areas ofprimarily the core business and other multiple pillars. A

internal medicine (gastrointestinal and thyroid), Ob/Gyn,company’s quality depends on its people. The other day,and urology. We recognize that continuous value

when I visited the Iwaki factory, one of the Group’s

creation through new drug development and provision

production bases, I was struck by how confident theof services that only we can offer, is a vital factor in

employees were in the way they spoke and acted. It

achieving sustainable growth.

was a moment when I felt that the talent we have is

Sustainable growth will also depend on diversifying oursteadily growing. Furthermore, in 2022 the Grouprevenue streams through collaboration with the animal

announced its intention to promote Femtech businesshealth business, testing, and the diagnostics business.

initiatives. I am proud of how we have continued to

We must build a management structure that can respondcontribute to women’s healthcare by developing drugs

to future risks and changes in the environment.

and providing information in the Ob/Gyn area. That

Our efforts will have limited results if the operating

makes me confident in our ability to rise to this newcompanies only work in isolation within the Group. Of

challenge. In this business, we will investigate various

the seven strategies that the Group is pursuing, thisoptions for addressing women’s health issues, including

applies in particular to our efforts toward “enhance

the use of the latest technology and collaboration withcorporate value by strengthening initiatives in theother companies, as I mentioned above.

specialty areas,” “continuously create new drugs* Seven Strategies

See page 19 for details

VisionTotal Healthcare Company with a Strong Foundation as a Specialty Pharma Company
Numerical
Targets

Operating profit
margin: 8%

Net sales: ¥70 billion(Consolidated)

1
3

ROE: 8%

Four Visions

Expand business scope centered on
pharmaceutical products
Become the top domestic company in our
specialty areas for pharmaceutical products

2
4

Improve business operations by promoting
open innovation
Continue to be a company that is trusted
by society

The Foundation for the Medium-Term Management Plan

Specialty

Ability to create

Social contribution

ASKA HD REPORT 2023

13

Value Creation Story

Progress of the Medium-Term Management Plan

— Now that we have reached the midway point of Medium-Term Management Plan
2025, what results have been achieved so far and what challenges do you see ahead?
earnestly pursue high-quality work. While maintaining
this balance, we must continue to invest in management
resources and accelerate collaboration with a view torealizing our growth strategy beyond 2025.
In terms of the offensive approach, our overseas
operations will become even more important as a newpillar of growth. In our core pharmaceutical business,
we plan to expand our presence by developing
pharmaceutical products for international standards,
mainly in the Southeast Asian market. In line with thisplan, the new plant construction project, carried out
with our equity method affiliate Ha Tay Pharmaceutical
Joint Stock Company (Hataphar), a Vietnamese
In FY2022, the second year of the medium-term

pharmaceutical company, was completed in August

management plan, performance remained strong, as it

2023. Preparations are currently underway at bothwas in the previous year, driven mainly by new products.

companies toward the start of commercial production.

As a result, sales exceeded ￥60 billion, a record high.

In the animal health business, we are working toWith regard to operating profit margin and ROE, we

expand our product lineup by applying our strengths

have already exceeded the targets we set for the final

in breeding, immunity, and nutrition, which we acquired

year of the current medium-term management plan,in the livestock and fisheries field, to the companion

and we will continue pushing ourselves to achieve

animal field. In the testing and diagnostics business,even higher levels.

we are expanding our test items and sample lineup

Looking back over the past two years, we havebased on trace analysis technology for endogenous

worked to hone our efforts in the area of “specialty,”

hormones. For example, we believe that kits that canwhich is the source of our value creation, and solidified

test stress levels from hair and nails may open up new

our foundation as a holding company. The Group ismarkets, such as in company benefit plans.

currently balancing “offensive” approaches, represented
by R&D investments to promote innovation and the

In FY2023, the midway point of the medium-term
management plan, we are continuing to work on

development of new markets, and “defensive” approaches,

achieving the quantitative and qualitative targets

such as risk management, governance systems, andannounced in May 2021, taking into account the issues

the development of human resources who can

I have mentioned and our progress on each initiative.

Growth Potential in the Ob/Gyn Market— What is the market potential for Ob/Gyn products, which is our greatest strength?
Also, what new measures are we taking to contribute to women’s health?

14

ASKA Pharmaceutical achieved the No.1 share of sales

healthcare, such as women’s advancement, changes inin the Ob/Gyn field in Japan in the second half of

medical administration, and improvements in health

FY2022, becoming the leading company in this area.

literacy. Overseas, the Ob/Gyn market has also been

Japan’s pharmaceutical market is often seen as

growing, with pharmaceuticals used for treatment thatshrinking, as the country’s population is declining.

are not widely available in Japan. We therefore see

However, the Ob/Gyn market is expanding due toconsiderable market potential for Ob/Gyn products,

various environmental changes related to women’swith a lot of room for growth.

ASKA HD REPORT 2023

The concept of medical care has changed in recent

initiative we have been focusing on for some time. In

years, expanding its scope to include prevention,

our workplace, sensitive topics such as menstruation

testing and diagnosis, treatment, and prognosis. In

are discussed as a matter of course. But, from oureach of those areas, many businesses targeting thestandpoint as a specialist and a leading company inneeds of women’s healthcare have newly entered thethe Ob/Gyn field, we need to disseminate information

field. We aim to promote collaboration with suchto a wider range of people with expressions that arecompanies through the Femtech Business Promotion

easy to understand while at the same time becoming

Unit we established in April 2023. In addition, during

more conscious of our external stakeholders.

the same period, we established a corporate venture
capital fund to secure strategic returns throughinvestments in startups that offer potential synergies

Ob/Gyn Market Size*(Billions of yen)with our Group, such as those with a focus on

100.0

addressing women’s health issues.

80.0

We hope more investors come to know about ourbusiness, which is dedicated to addressing women’s

40.0

example, to hold briefings that are focused solely on

20.0

status of new drug candidate compounds. There arealso improvements to be made in terms of thedissemination of information on women’s health, an

72.7

60.0

health issues. That is why we feel it necessary, forthe development pipeline; that is to say, the R&D

94.5

86.5

0

2020

2021

2022

2023

2024

2025

Projection

Forecast

Forecast

Forecast(Year)* FUJI KEIZAI CO., LTD. “Trend analysis and future forecast of the market related to obstetrics
and gynecology, which is attracting attention in insurance coverage”
All rights reserved.

The Unique Organizational Culture of the ASKA Pharmaceutical Group— The ASKA Group recognizes that the foundation to become a total healthcarecompany is human capital. What mindset and characteristics are shared by thehuman resources of the Group companies?
The answer can be found in the Group’s origins. Whenmessage to our Company employees, I made the point

we started researching hormone preparations 103

that even if you aim for Mount Everest from theyears ago as a venture involved in medical care, what

beginning, it will be difficult to reach the summit on

mattered most were the ideas and motivation of our

the first try. But if you climb lower mountains again

employees. Through daily contact with the medical

and again, racking up both successes and failures, you

front line, a passion to contribute to the world throughwill eventually realize the main goal of reaching theunique ideas and drug discovery capabilities graduallysummit of Mount Everest. In other words, trying

grew among our employees. The sense of mission—

something new is bound to have moments of failure.

that we are directly involved in the life and health of

A positive failure always feeds into success. The Grouppeople and animals—is also a common awarenesstoday also has accumulated successes that havewithin the Group. In fact, even before the concepts ofemerged from such challenges. As a result, we have

ESG or CSR existed, we had a sense of not only

become able to expand the scope of our business withresponsibility but also a dedication toward the mission

a focus on pharmaceuticals and to develop ourthat we should fulfill as a pharmaceutical company,

business in a way that enables us to target the entire

and made that sense a natural part of the spirit of ourhealthcare market. We believe that, backed by the

corporate organization.

drug discovery capabilities we have built up over ourThis spirit and this corporate climate of innovation

century-long history, we have grown into a corporate

have been passed down to the present day. We in thegroup that can respond to the diverse demands ofmanagement team value the ideas and motivationsociety. Going forward, we will continue to take onthat our employees have brought to the Company

further challenges while evolving our relationships

over time and strive to create a constant flow of ideas

with stakeholders toward co-creation to build newthat will blossom into new businesses. In a recent

value together.

ASKA HD REPORT 2023

15

Value Creation Story

Material Issues
Promotion of Sustainability
The ASKA Pharmaceutical Holdings Group pursues ESG
management so that it can solve social issues through its
business. In this, we are guided by the corporate
philosophy, “Contribute toward the improvement ofpeople’s health and progress in society through thedevelopment of innovative products.”
The Group has identified 11 material issues (mostimportant issues). Of these, “contribution to women’s
health“ and “contribution to animal health” are particularly
relevant material issues for the Company and are being
promoted by the entire Group. We will also work to address
climate change by reducing CO2 emissions throughexpanded use of solar power generation and theintroduction of clean energy, and strengthen our humancapital by developing and acquiring human resources
capable of responding to new businesses and changes inthe business and social environment, and by creating aworking environment in which a diverse range of humanresources, including women, career professionals, andseniors, can play an active role.
In April 2023, we established a new Sustainability
Promotion Section in the Corporate Planning Department
with the aim of further accelerating our efforts. We willcontinue to meet the expectations of our stakeholders byplacing sustainability at the center of our management,
striking a balance between maximizing the economic valueof the Company and enhancing its social value.

Atsushi Maruo
Senior Managing Member of the Board of Directors,
Representative Director, in charge of Sustainability
ASKA Pharmaceutical Holdings

Basic Policy for Sustainability
The Company has established CSR guiding principles andworks for the ongoing growth for the Group as a whole andto contribute to society.

As a trusted company, we will increase profitability throughsound business practices and fulfill our social responsibilities
as a good corporate citizen.

1 Supplying High-Quality Pharmaceuticals

3 Respecting Human Rights

1. All employees conduct business with integrity guided by our
corporate philosophy.
2. We provide a stable supply of high-quality pharmaceuticals withexcellent efficacy and safety.

2 Ensuring Compliance

1. W
 e respect the human rights of all people affected by ourbusiness practices.
2. W
 e respect the diversity of our employees and strive to foster a safe
and comfortable corporate culture.

4 Contributing to Communities and Society

1. We are thoroughly committed to corporate ethics and to compliancewith all laws and regulations.
2. We maintain fair relationships with stakeholders and conducttransactions that are fair, transparent, and based on free competition.
3. Regarding the protection of personal information, we manage theinformation in compliance with our privacy policy.

1. A
 s a good corporate citizen, we communicate with the local communityand broader society while striving to contribute to the world.

5 Preserving the Environment
1. W
 e participate in the realization of a sustainable society throughenvironmental preservation and by practicing environmental
management.

Materiality Map
Mapping of Material Issues

Environmental

Stakeholders’interests

Mostimportant

Environmental protection and continuous reduction ofenvironmental impact

Material issues

SocialHuman resources development
Employee engagement
Creation of innovative products
Expanding access to healthcare

Contribution to women’s healthContribution to animal health
Stable supply of high-quality products
Promotion of proper use of products

GovernanceImportant

Importance to ASKA Pharmaceutical Holdings Most
important

Corporate governance

Secure compliance with laws andregulations, enforcement of compliance

Background to Identification of Material Issues
The Group aims to become a total healthcare company witha strong foundation as a specialty pharma company. To
contribute to solving social issues and building a sustainable
society, we established the ESG Committee in 2021 andidentified 17 most important issues as our material issues. In
2023, we revised our material issues in response to the16

ASKA HD REPORT 2023

changing business and social environment. We recognize“contribution to women’s health” and “contribution toanimal health” as distinctive material issues for theCompany. We will strive as a Group to solve social issues
and enhance our corporate value by addressing these andother material issues.

Company-wide Action Plan and KPIs for Material Issues
KPIs

Material Issues

Company-wide Action Plan

KPIs
1. Reduction of CO2 emissions: Reduction of 46% from FY2013 (FY2030)
2. Reduction of total wasteE

Environmental protection
and continuous reductionof environmental impact

Environmental protection, continuous
reduction of environmental impact,
and promotion of environmental
management

3. Improvement in recycling rates
4. Promotion of environmental measures
5. Environmentally conscious business operations
6. Reduction of the use of natural resources eduction of emissions of environmentally harmful substances (reduction of the impact
7. R
of nitrogen on the environment by promoting low-protein feed) umber of in-house recruitment system and interdepartmental transfers (number of
1. N
career challenges)
of elective training courses taken: Next-generation leader training
2. Number

Human resources
development

Development of human resources
to realize growth strategies

Number of selective training courses taken: Training to promote the advancement of
women (career development of female employees)/other selective training as a measure to
support the autonomous learning of employees
Expenditures per employee (for education)

3. P romote the implementation of internal and external hierarchical training/selective training(career development of female employees)
 ptimization of working hours: Promotion of the use of annual paid leave as planned, guidance
1. O
for promotion of the use of annual leave, provision of annual leave (taken hourly), etc.

2. Health management initiatives
3. Promotion of various working styles: telecommunicating, telework, flextime, short-time

Employee engagement

Creation of an environment that
promotes understanding of theorganization, sympathy, andmotivation to take action, andachievement of work-life balancethat respects the health and diversityof our employees

work, etc.

4. Implementation of regular stress checks and surveys for engagement
 romotion of women’s advancement in active roles (FY2024 target):
5. P
Percentage of female managers (15%)
Percentage of female medical representatives (20%)

6. Promotion of active roles for diverse human resources
7. Measures to support development of the next generation: Maternity leave (utilization
rate 100%) / Childcare leave for male employees (utilization rate 100%)

8. Support for medical representatives to take maternity leave and childcare leave(implementation of reintegration programs, social gatherings, etc.)

S

Creation of innovative
products

Expansion of pipeline throughopen innovation

Expanding accessto healthcare

Contributions to specialty areas bytaking advantage of our own strengths

1. Promotion of in-house research themes
2. Reinforcement of alliance activities
 rovision of comprehensive information on specialty areas (Ob/Gyn, thyroid)
1. P

2. Promotion of accurate information and raising disease awareness
3. Early identification of diseases through activities to promote testing and diagnostics
4. Early detection of disease through non-invasive measurement kit
 ontribution to women’s healthcare by providing products for each of women’s life stages
1. C

2. New initiatives for women’s healthcare

Contribution to
women’s health

Total support for women’s health

3. Promotion of the advancement of women through activities to raise awareness on
health and diseases

4. Sexual education initiatives for younger generation
5. Activities to raise awareness among families and partners about women’s health issues
1. Promotion of animal welfare

Contribution toanimal healthContribution to creation of asociety where people and animals
can coexist

 evelopment and provision of products useful for maintaining the health of companion animals
2. D evelopment and provision of non-invasive measurement kit products using body hair
3. D

4. Promotion of biodiversity

Stable supply ofhigh-quality products

1. Reinforcement of supply chain management
Ensuring product quality and stableprocurement and supply

2. Implementation of appropriate GMP audits
3. Implementation of appropriate GQP (ensuring that a quality assurance system is in place)
1. Implementation of appropriate clinical trials (GCP compliance) dequate implementation of GVP and RMP
2. A

Promotion of proper useof products

Ensuring safety and providing
information on proper use ompliance with GVP and guidelines for activities for provision of sales information
3. C issemination of materials and knowledge to promote proper use, and strengthening
4. D
product education for medical representatives, etc.
 rompt provision of latest information through website
5. P

1. Fostering corporate culture and climate that respect healthy business ethics
2. Ensuring real equality of shareholders

Corporate governance

Establishment of corporate system forcontinuous growthG

3. Social contribution activities that lead to solving social issues
4. Constructive dialogue with stakeholders
 ppropriate disclosure and explanation of management strategy, performance, financial
5. A
condition, capital policy, etc.

Secure compliance withlaws and regulations,enforcement of compliance

Thorough maintenance of complianceand fostering an organizational climatethat emphasizes reliability

 ompliance system mainly promoted by Group Compliance Promotion Committee
1. C ontinuous implementation of preventive measures against serious incidents
2. C

ASKA HD REPORT 2023

17

Explanation of Strategy

ASKA Pharmaceutical Holdings’ Medium-Term
Management Plan 2025
With the aim of becoming a total healthcare company, ASKA Pharmaceutical Holdings is implementing
its Medium-Term Management Plan 2025, which ends in FY2025. To realize the four visions we haveset, we are pursuing seven strategies based on the foundation of specialty, ability to create, andsocial contribution.

ASKA Pharmaceutical Holdings’ Medium-Term
Management Plan 2025
Four Visions

1
2
3
4

Net sales: ¥70 billion

7

Operating profit margin: 8%

Strategies

Expand business scope centered on
pharmaceutical products

ROE: 8%Targeted Net Sales

Improve business operations by promoting
open innovation (from R&D to production
and sales)
Become the top domestic company in our
specialty areas for pharmaceutical products

70.0 billion¥(Billions of yen)

70.0
60.0

4.8

50.0

18.8 27%

9%

40.0
30.0

50.3 91%

20.0

51.3 73%

10.0

Continue to be a company that is trusted
by society02020
Prescription pharmaceutical business

2025

(FY)

Animal health, testing, healthcare, and overseas businesses

The Foundation for Formulating the Medium-Term Management Plan

Specialty

Ability to create

Social contribution

FY2021 Actual

FY2022 Actual

FY2025 Targets

Net sales (Millions of yen)

56,60760,46170,000Operating profit margin (%)

8.5

8.4

8.0

ROE (%)

8.8

8.2

8.0

Review of FY2022
In FY2022, the second year of ASKA Pharmaceutical
Holdings’ Medium-Term Management Plan 2025, economic
activities continued to normalize. However, soaring
energy and raw material prices and other cost increases
meant the outlook remained uncertain. In thepharmaceutical industry, the business environment has
become increasingly difficult due to factors such as NHI
price revisions imposed each year since April 2021 tocurb drug costs. However, despite these conditions, theGroup was able to match the excellent performance it
achieved in the previous fiscal year and has achieved
record consolidated net sales of ¥60,461 million. This
was achieved through growth in Ob/Gyn products in thepharmaceutical business and strong sales of feed additives

18

ASKA HD REPORT 2023

in the animal health business. Despite higher R&D andsales promotion expenses from the normalization ofsales activities, operating profit increased to ¥5,108
million due to an increase in gross profit. Ordinary profit
was ¥5,232 million, after recording ¥433 million in
non-operating income and ¥308 million in non-operating
expenses. Although extraordinary income of ¥124 million
was recorded from the sale of investment securities,
profit attributable to owners of parent declined ¥51
million year on year to ¥4,238 million. This was partly
because there was no extraordinary income from thesale of non-current assets that was booked in theprevious fiscal year.
Note: Amounts are rounded down to the nearest million yen.

Seven Strategies: Achievements, Future Challenges and Initiatives
Seven Strategies

1. Enhance Corporate Value byStrengthening Initiatives in theSpecialty Areas
See pages 26-28 for details.

FY2022 Achievements

Future Challenges and Initiatives∙ Expanded the Company’s share of the LEP∙ Continue to grow the business by providing

formulation market based on the sole sales
rights for DroEthi and achieved market
penetration of RELUMINA to become theleading company in the Ob/Gyn area

products that cater to a wide range ofwomen’s life stages∙ Promote accurate understanding through∙ LF111 new drug application filed byawareness campaigns on often-overlooked
diseases∙ Made progress toward the application∙ Expedite schedule for research andHyundai Pharm. Co., Ltd. (South Korea)

2. Continuously Create New
Drugs through Advanced
Drug Discovery
See page 28 for details.

3. Overseas Operations
See page 29 for details.

4. Provide New Value to Realize
Total Healthcare
See pages 24-33 for details.

5. Improve Operational Efficiency,
Cut Costs, and Reinforce Our
Financial Basepreparation stage for L-105 (pediatric) andthe completion of recruiting for LF111
Phase III clinical trials, among otherdevelopment stage advancements.

∙ Create new assets to meet unmet medical
needs in priority areas∙ Concluded a collaborative research

agreement with Epsilon MolecularEngineering, Inc., aiming to create novel
VHH drugs in the Ob/Gyn area

∙ Supported operation of Hataphar’s newplant following its completion∙ Support Hataphar’s new plant operation byenhancing collaboration(ASKA Pharmaceutical)(ASKA Pharmaceutical)Startedcollaboration
inthepharmaceutical∙∙ Establish projects to support improvement
peripheral area (Adoption of Femtech andof women’s health issues (Femtech)other support service businesses, conclusion(ASKA Animal Health)of consortium agreement with four companies,∙ Expand companion animal product lineup
conclusion of joint information provisionand establish and develop an efficient sales
agreement on fetal monitors with Melody
structure
International Ltd.)(ASKA Pharma Medical)(ASKA Animal Health)∙ Expand lineup of hormone measurement∙ Took over and newly launched a total ofkits for hair samples and develop
three products, including feed additives
measurement business for samples otherand veterinary pharmaceuticals
than fixed hair samples(ASKA Pharma Medical)∙ F ollowing registration as a clinical laboratory,
started contracting to perform testing anddiagnostics for medical institutions∙ Continued cost reduction measures∙ Reexamined product portfolio∙ Promote autonomous digitalization of

departments to improve operational efficiency∙ Secure a stable financial base while
improving capital efficiency

See pages 24-29 for details.

6. Foster an Organizational Culture
That Emphasizes thoroughCompliance and Accountability

development themes∙ Continued reviews of quality
management system∙ Enhance employee awareness throughongoing education and training∙ C ontinued to implement compliance training

See pages 46-51 for details.

∙ Expanded flexible work styles, including
renovating head office and promoting
paperless operations

7. Develop Human Resources to
Realize Growth Strategies
See pages 34-39 for details.

∙ Continued health management initiatives tomaintain our presence in White 500 CertifiedHealth & Productivity Management
Outstanding Organizations Recognition
Program∙ Promote measures to achieve work-lifebalance and health management∙ Build an organizational structure thatembraces diversity and enables all
employees to thrive∙ Expanded e-learning, selection, andenhanced opportunities for level-specificeducation and training
ASKA HD REPORT 2023

19

Explanation of Strategy

Financial and Capital Strategy

Achieving sustainable valueenhancement through abalance of investing in
future growth andimproving capital efficiency
Atsushi Maruo
Senior Managing Member of the Board of Directors,
Representative Director
ASKA Pharmaceutical Holdings

Recognition of Changes in the Business Environment and Progress of Medium-Term
Management Plan 2025
In FY2022, with the lifting of restrictions related to the
COVID-19 pandemic, economic activities gradually

Furthermore, for ROE, which we emphasize as an indicatornormalized. However, the business environment remainedof capital efficiency, we have set a target 8.0% for the final

challenging due to the economic impact of factors thatyear of the medium-term management plan. In FY2022, ROE

increased costs such as the sharp rise in energy and raw

was 8.2%, exceeding the target, as it had in the previous

material prices associated with geopolitical risks. Despite thisfiscal year. To consistently keep our ROE above 8.0%, wesituation, however, the Group’s business maintained thewill need to continue with the implementation of thesame strength that it achieved in the previous fiscal year,

strategies of the medium-term management plan, increasing

thanks to the growth of new products and even greater

profitability while improving capital efficiency throughefforts to reduce costs. As a result, we achieved record net

appropriate capital allocation. The Group will maintain asales of ¥60,461 million. We were also able to meet ourbalance of investing in growth and improving capitalprofitability targets with operating profit of ¥5,108 million

efficiency as we strive to enhance our corporate value.

Financial and Capital Strategy KPIs

FY2022 Actual

FY2023 Forecast

FY2025 Targets

60,46162,00070,000

5,108

5,400

5,600

8.4

8.7

8.0

4,238

4,400

—

150.08155.81—

Net sales (Millions of yen)
Operating profit (Millions of yen)
Profitability

Operating profit margin (%)
Profit attributable to owners of parent(Millions of yen)
Earnings per share (EPS) (Yen)

Capitalefficiency

Profit attributable to owners of parent/
Equity (ROE) (%)

8.2

—

8.0

Financialsoundness

D/E ratio (Interest-bearing debt ratio) (%)

0.23

—

—

Equity ratio (%)

62.6

—

—

Note: Amounts are rounded down to the nearest million yen.

20

and an operating profit margin of 8.4%.

ASKA HD REPORT 2023

Growth Investments
As the core of the Group is the pharmaceutical business, werecognize that R&D investment is a source of future earnings

women’s health issues and other problems.
Furthermore, one of the Group’s medium-term management

and is vital for increasing corporate value. In drug discovery

plan strategies is to “Develop Human Resources to Realize

research, we are promoting open innovation and utilizing

Growth Strategies.” To enhance our specialty and ability toexternal resources. In business development, we are

create, we are working toward various goals such as

strengthening our strategy of in-licensing drugs underdeveloping and acquiring human resources who can responddevelopment and enhancing our pipeline in specialty areas

to new businesses and changes in the environment, andand fields of expertise. Aiming to become a total healthcare

creating a workplace environment where diverse human

company, we will actively invest in promising business fields,

resources can play an active role. Achieving sustainable

not only in pharmaceutical products, while also pursuing

corporate value enhancement depends on linking

capital alliances with other companies and M&A. In March

management and human resources strategies. With this in

2023, we established a corporate venture capital fund,mind, we view human resources, the most important of all

ASKA Innovation Investment Limited Partnership, jointly

management resources, as a form of capital, and work towith Future Venture Capital Co., Ltd. This fund will enablemaximize their capabilities through autonomous learning,

us to accelerate collaboration with venture and start-up

which leads to value creation.

companies, creating new value as we work to solve

Assessment of Financial Soundness
Regarding the consolidated financial position of the Group

as appropriate. During FY2022, the Company sold its

as of March 31, 2023, total assets were ¥87,138 million,

holdings in three companies. As a first step, we will strive towhile net assets totaled ¥54,533 million, resulting in thequickly bring the market value of our cross-shareholdings toequity ratio of 62.58%. We view ensuring the stability of

below 20% of net assets. We will also continue working toour financial base as an important management issue forbalance equity and interest-bearing debt while ensuring a

the Group. On the other hand, from the viewpoint of capitalstable financial base and enhancing capital efficiency byefficiency, the Group judges appropriately whether or not

thoroughly examining investment projects and properly

to continue cross-shareholdings. We strive to reduce thecontrolling risks and costs.

holding of shares determined not to have sufficient meaning

Note: Amounts are rounded down to the nearest million yen.

Policy for Returns to Shareholders
The Group regards the return of profits to shareholders as

continue to meet the expectations of our shareholders by

an important management issue. We aim to return

improving capital efficiency and strengthening our financial

appropriate profits to our shareholders by achieving strong

base to enhance corporate value sustainably.

results and continuously improving our corporate value.
Our basic policy regarding dividends is to maintain stable（億円） Dividends per Sharedividends while considering necessary management
resources such as internal reserves for long-term businessdevelopment and future funding needs. In the most recent
fiscal year, FY2022, we raised our annual dividend by ¥1
per share to ¥16. For FY2023, in light of our businessperformance, we expect to pay an annual dividend of ¥20

188 億Includes ¥3 dividend
for commemorationof 100th anniversary

¥20
¥17
74.0%

¥14

¥15

Year-end¥8

per share (interim dividend and year-end dividend: ¥10 per
share). On the other hand, we are also fully aware of theimportance of ensuring that the return of profits is properlyaligned with earnings. We also plan to consider theacquisition of treasury shares in a flexible manner in
response to changes in the business environment. We will

¥16

14.6%

5.3%*

2019

2020

2021

InterimYear-end

Payout ratio

Interim
¥8

10.7%
2022

Year-end¥10
Interim¥1012.8%2023 (FY)(Forecast)＊The interim dividend for FY2021 is excluded from the calculation of thepayout ratio as it is derived from other capital surplus.

ASKA HD REPORT 2023

21

Explanation of Strategy

Overview of ASKA Pharmaceutical Holdings
ASKA Pharmaceutical Holdings comprises three subsidiaries: ASKA Pharmaceutical Co., Ltd., whichhandles prescription pharmaceuticals; ASKA Animal Health Co., Ltd., which conducts animal healthbusiness; and ASKA Pharma Medical Co., Ltd., which is mainly focused on testing business. In addition toprescription pharmaceuticals, we are also working on research and development of veterinary
pharmaceuticals using the hormone-related expertise we have cultivated since our founding. We are
creating unique synergies, such as by applying pharmaceuticals that have originally been used for humans
to animals. One of our strengths is in testing technologies that enable microdetermination. In each area,“hormones” are the foundation in conducting businesses.

ASKA Pharma Medical
ASKA Animal Health¥¥

6.6 billion

0.2 billion

ASKA Pharmaceutical Holdings
FY2022 Net Sales¥

60.4 billion

ASKA Pharmaceutical¥

22

ASKA HD REPORT 2023

53.5 billion

We believe that our DNA, which has remained unchanged over the 100 years since our founding, is thesource of the value that we provide as ASKA Pharmaceutical Holdings. To realize our corporate
philosophy we continue to provide valuable products and services through our various business activities.

ASKA PharmaceuticalPages 24-29

Contributing to the Improvement of People’s Health and Quality of Life as a Pioneer in
Hormone Preparations
ASKA Pharmaceutical Co., Ltd., our main subsidiary,
conducts business in three priority areas with a focus
on pharmaceuticals, particularly hormone preparations.
By staying attuned to women’s life stages andchanging lifestyles, we remain a leading company
in the Ob/Gyn field with a broad lineup of products
including uterine fibroids and endometriosis agents.
These products support women’s health as they leadactive, healthy daily lives.

Internal
Medicine(Gastroenterology
and Thyroid)

Ob/GynASKA Animal HealthUrology

Pages 30-31

Contributing to the Creation of a Society Where People and Animals Can Coexist
ASKA Animal Health Co., Ltd. contributes to theoperations of farmers and veterinary professionals
by maintaining or improving the productivity of the
livestock and fishery products that underpin Japan’s
food self-sufficiency, and by conducting research,development, manufacturing, import, and sales ofveterinary pharmaceuticals and other products thatare useful for maintaining the health of dogs, cats,
and other companion animals.

Livestock andFisheries

ASKA Pharma Medical

Companion
Animal HealthPages 32-33

Contributing to a Healthy Society through Cutting-Edge Measurement Technologies
ASKA Pharma Medical Co., Ltd. leverages its
advanced technologies and extensive know-how tocontribute to a wide range of fields including basic
research, clinical research, and diagnostics, centeredon measurement of steroid hormones and otherbioactive substances (Testing business).

Microdeterminationof Endogenous
Hormones

Measurements
Using
Non-Invasive
Samples(Hair, nails, etc.)

ASKA HD REPORT 2023

23

Explanation of Strategy

Business Conditions
ASKA Pharmaceutical
Creating new value as aleading company infemale healthcare

Founded in 1920, ASKA Pharmaceutical began its businessIn light of this trend, in April 2023 we established thewith the unique idea of developing hormone preparations

Femtech Business Promotion Unit, which is tasked with supportingfrom animal organs. Today, we concentrate management

women’s health more broadly, beyond pharmaceuticals.

resources on the three priority areas of internal medicine,

As women enter the workforce and their lifestyles change,

Ob/Gyn, and urology, and develop the pharmaceutical

we feel that now more than ever there is a need to address

business with a focus on new drugs.

women’s specific health issues.

Our strengths lie in the trust and experience we have

As a leading company in female healthcare that responds

accumulated by conducting R&D with a focus on hormone-to various needs, we will create innovative new drugs byrelated areas, launching new products, ensuring quality andaccelerating open innovation through collaboration between

stable supply, and promoting dissemination of informationindustry, government, and academia in Japan and overseas.

on proper use.

We will continue making efforts to raise awareness in various

In the Ob/Gyn area, in particular, we approach various

ways such as using the knowledge we have cultivated overissues according to women’s life stages. We support women’s

the years to disseminate information. In doing so, we will

health and lives with a wide variety of pharmaceuticals forcreate opportunities for women to make choices that lead todysmenorrhea, contraception, uterine fibroids andhealthy and fulfilling lives.

endometriosis, infertility, perinatal period disorders andWhile strengthening the core of our pharmaceuticalmenopause-related diseases, among other indications.

business with a focus on new drugs, we aim to go beyond

In the thyroid area, our domestic market share ofsolely providing pharmaceuticals. We will take an integrated

pharmaceuticals for hypothyroidism and hyperthyroidism

approach covering prevention, testing, diagnostics, treatment,each exceeds 90%. We are fulfilling our mission of providing

and prognosis to become a total healthcare company whilea stable supply of these products, which are indispensable intransforming into a competitive specialty pharma company.

medical settings.
In the healthcare field, there has been growing public interest
in Femtech, which is defined as the use of technology toaddress health issues specific to women, such as menstruation,
pregnancy, childbirth, and menopause. There is increasing
momentum toward creating an environment where everyone
can work and live comfortably.

24

ASKA HD REPORT 2023

Sohta Yamaguchi
President, Representative Director
ASKA Pharmaceutical

Strengths and Strategies
As a leading company in the Ob/Gyn area, ASKA Pharmaceutical is using its strengths in the fields ofendocrinology and hormones to implement a range of strategies aimed at helping solve women’s health issues.

Strengths• Leading company in the Ob/Gyn area
• Leading company in the thyroid area
• Specializing in endocrine and hormone areas for over 100 years

Strategies• Provide 21 pharmaceutical products that accommodate women’s lifestyles• Achieve penetration of agents for uterine fibroids, endometriosis, and dysmenorrhea• Contribute to solving women’s health issues through a variety of initiatives, including dissemination of
information on women’s health• Contribute to raising awareness and treatment of thyroid-related diseases• Maintain a stable supply of basic pharmaceutical products• Conduct R&D with a focus on hormone-related areas, launch new products, ensure quality and stable supply,and promote dissemination of information on proper use• Concentrate management resources on the three priority areas of internal medicine, Ob/Gyn, and urology, anddevelop the pharmaceutical business with a focus on new drugs• Create innovative new drugs by accelerating open innovation through collaboration between industry,
government, and academia in Japan and overseas• Make efforts to raise awareness in various ways such as using the knowledge we have cultivated over the years
to disseminate information

Main Products• Internal Medicine• Ob/Gyn• Urology

Hepatic encephalopathy
agent
RIFXIMA

Hypothyroidism
agent
THYRADIN

Uterine fibroids andendometriosis agent
RELUMINA(rifaximin)(levothyroxine)(relugolix)

Dysmenorrhea agent
DroEthi “ASKA”(drospirenone/ethinylestradiol)

Endometriosis, uterine
fibroids, and prostatecancer agent
LEUPRORELIN “ASKA”(leuprorelin)

Antihypertensive agent
CANDESARTAN “ASKA”(candesartan)

Dysmenorrhea
Infertility agent Emergency
agent
LUTEUM
contraceptive
FREWELL “ASKA”(progesterone)
NORLEVO(norethisterone/ethinylestradiol)(levonorgestrel)

ASKA HD REPORT 2023

25

Explanation of Strategy

Business Conditions

Performance in FY2022
The pharmaceutical business, which focuses on the three priority

rose to ¥5,397 million (up 11.2% year on year). In the urology

areas of internal medicine, Ob/Gyn, and urology, remained

field, sales of LEUPRORELIN, an endometriosis, uterine fibroids,

strong overall despite the impact of NHI drug price revisions. Net

and prostate cancer agent, decreased to ¥4,999 million (downsales increased to ¥53,579 million (up 5.5% year on year). By

3.6% year on year). As a specialty pharma company focusing

product, in the Ob/Gyn area, sales of RELUMINA (relugolix), aon the three areas of internal medicine, Ob/Gyn, and urology,

uterine fibroids and endometriosis agent, increased to ¥8,839

we will continue to actively expand our development pipeline

million (up 20.5% year on year), a significant increase following

by further promoting drug discovery and alliances.

the previous year, and sales of FREWELL (norethisterone/
ethinylestradiol, a dysmenorrhea agent), grew to ¥3,489 million

Net Sales in the Pharmaceutical Business(up 0.8% year on year) despite a price reduction of over 10%(Millions of yen)

due to the NHI drug price revision in April 2022. Sales of DroEthi

60,000(launched in June 2022), a dysmenorrhea agent for which we

50,000acquired manufacturing and marketing approval as the only

40,000company, totaled ¥3,671 million. In addition, in the area of

30,000internal medicine, sales of our key product THYRADIN, aInternal medicine
Urology

47,85150,31450,79153,5798.6%

41,75738.4%

20,000hypothyroidism agent, increased to ¥7,733 million (up 3.1%
year on year). Sales of RIFXIMA, a hepatic encephalopathy agent

Ob/Gyn53.0%

10,0000

for which we worked to establish clinical practice guidelines,

2018

2019

2020

2021

2022

(FY)

Note: Amounts are rounded down to the nearest million yen.

Major Initiatives
1 Specialty Areas
We have established a specialty area system, which we

co-promotion activities. In addition, with the revision of

introduced to conduct information provision activities focusing

guidelines, RIFXIMA has established its status as a standard

on the Ob/Gyn area and RIFXIMA. Under this system, we willagent for hepatic encephalopathy. As a result, we will further

continue to provide high-quality information and pursue

promote the dissemination and penetration of the agent. In

efficient sales activities such as through webinars. We work to

addition, THYRADIN, which holds a domestic market share offurther enhance our presence in the Ob/Gyn area through theover 90%, is an indispensable pharmaceutical in the medical

provision of information on products that contribute to businesssetting. As a leading company in thyroid disease-related

performance, mainly RELUMINA and DroEthi (launched in June

medicines, we will maintain a stable supply system and continue2022), as well as Jemina and Riona for which we are conducting

to engage in activities to raise awareness of thyroid diseases.

Ob/Gyn Pharmaceuticals by Life Stage
Early childhood

Puberty
Contraception

Sexual maturity
Drospirenone (LF111)ANGENORLEVO

Menopause

Old age

Menopause

HOLIN

Iron deficiency anemia Riona (Co-promotion*)
STD/Infection

Rapid SP Chlamydia (Co-promotion*)

Uterine fibroids, endometriosis, dysmenorrhea, menstrual disorders
RELUMINALEUPRORELIN

Adhesion barrier (TRM-270)
DroEthiPMS/PMDD drugs

Relugolix combination tablet (AKP-022)
Jemina (Co-promotion)

FREWELL (AG)

PLANOVAR

Imminent miscarriage/premature birth, labor induction, uterine contraction and hemostasis
Magsent

MAGNESOL

RITODRINEATONIN

Methylergometrine

Infertility* Mainly in the Ob/Gyn field

26

ASKA HD REPORT 2023

HMG injection

uFSH injection

LUTEUM

GONATROPINSEXOVID

Now on sale
Under development

2 Endometriosis Treatment
Promoting the penetration of RELUMINA as a treatment
for endometriosis
We launched RELUMINA in 2019 as the first oral GnRH antagonist agent for the treatmentof uterine fibroids in 20 years. Since then, the switch from the standard injectable formulationof comparable drugs with similar efficacy is progressing steadily. In December 2021, it
received approval for an additional indication as an endometriosis agent. We are working
to promote the penetration of RELUMINA as a treatment for endometriosis as well as foruterine fibroid treatment with the aim of providing a new option in pharmaceuticals forendometriosis. In FY2022, sales increased significantly to ¥8,839 million (up 20.5% year
on year). By accelerating the penetration of RELUMINA for the treatment of uterine
fibroids and endometriosis, we plan to significantly increase sales to ¥10,128 million (up14.6% year on year) in FY2023. In this way, we expect to achieve our target of over ¥10billion for the final year of the current medium-term management plan ahead of schedule.
Note: Amounts are rounded down to the nearest million yen.

3 Dysmenorrhea Treatments
Achieved No.1 share in the LEP market by selling DroEthi as thecompany with sole sales rights
The dysmenorrhea market is rapidly expanding due to factors such as women’s
advancement in the workforce and increased health literacy. In this area, we have three
products in our lineup: FREWELL (authorized generic) and Jemina (a co-promotion with
Nobelpharma), and DroEthi (a generic drug) launched in June 2022 for which we havethe sole sales rights. As such we provide a range of options for people suffering fromdysmenorrhea. The combined market share of the three LEP* formulations (pharmaceuticals)
is 42.7%, and we expect this to continue to grow in line with market expansion. In
addition to provision of pharmaceutical products, we also operate Health Lab Mint+ for
Women’s health as an initiative to support women’s health. We continue striving tocontribute to women’s health through dissemination of a variety of information.

Reality of Treatment forEndometriosis
Patients diagnosed
with endometriosis(1,000,000 patients)
Patients receiving
hormone preparations(670,000 patients)
Patients receiving
GnRH preparations(63,000 patients)
Patients receiving RELUMINA(34,000 patients)
Source: Survey results by JMDC Inc. (March 2023)
Note: Estimation from electronic health insurance claims data

Product Share in the LEP
Formulation Market(FY2022)

ASKA
Pharmaceutical’sMarket Share

42.7%* Low-dose estrogen/progestin combination
Note: Estimated based on Encise data

4 Thyroid Disease Treatments
Domestic thyroid pharmaceutical market share of 95% with
THYRADIN, MERCAZOLE, etc.
Abnormal thyroid function can cause a variety of physical and mental symptoms. Thyroid
disease is a common disorder among women and said to be related to menstrual disorders
and infertility. Through a wide range of activities to raise disease awareness among medical
professionals and the general public, we are working to be able to identify patients in needof treatment at an early stage. In addition to activities to provide information, lengthening
the administration period by extending life expectancy has also contributed to sales growthof roughly 2-3% each year. We will work to ensure stable supply through daily production,
stocking, and business continuity planning (BCP) measures so that we can continue todeliver pharmaceuticals to patients even in the event of an emergency. In doing so, we will
fulfill our mission as a leading company in the thyroid area.
Note: Amounts are rounded down to the nearest million yen.

5 Hepatic Encephalopathy Treatment
Contribution to unmet medical needs through RIFXIMA
Hepatic encephalopathy is a condition in which liver function is significantly reduced,
which can give rise to psychoneurological symptoms such as loss of consciousness. It is arare disease with fewer than 50,000 patients, and as such RIFXIMA is designated as anorphan drug. In addition, the Clinical Practice Guidelines for Cirrhosis strongly recommendRIFXIMA for treating hepatic encephalopathy. We are working to raise awareness of theseguidelines with the aim of promoting the penetration of RIFXIMA. In June 2023, we
additionally applied for dosage and administration approval for RIFXIMA as an agent for
the treatment of hepatic encephalopathy in children. We will continue to address unmet
medical needs so that we can contribute to society.

Sales of Thyroid-Related
Pharmaceuticals*
Financial results base (Millions of yen)

8,432

2019

8,768

2020

9,116

2021

9,375

2022

9,502

10,0002023

2025(Forecast)(Target)(FY)* THYRADIN, MERCAZOLE, PROPACIL

ASKA HD REPORT 2023

27

Explanation of Strategy

Business Conditions

6 Development Pipeline
In clinical development, four clinical trials are currently inprogress. A Phase III trial is under way for LF111 (drospirenone),which is being developed for the indication of contraception. In
September 2021, we started a domestic Phase I/II clinical trial for
Relugolix (for which we have obtained exclusive development
and sales rights in Japan from Takeda Pharmaceutical Company
Limited) combination tablet (development code: AKP-022) for
the treatment of uterine fibroids. In addition, after the completionof a Phase IIa clinical trial of AKP-009 (ludaterone acetate), which
is being co-developed with Kyorin Pharmaceutical Co., Ltd.,
we conducted an additional Phase I clinical trial to confirm the
maximum efficacy. We are carrying out another Phase I clinical
trial to reconfirm the data based on the results. For TRM-270,
which we are developing jointly with Toray Industries, Inc.,
we are currently conducting a Phase III clinical trial. In addition,a Phase II/III clinical trial for L-105 (rifaximin), for which we are
seeking an additional dosage and administration approval for thetreatment of hepatic encephalopathy (pediatric), has been
completed and an application has been submitted to theregulatory authorities.
One theme we are pursuing in preparation for development
is transnasal testosterone (AKP-017), for which we aim to begin
clinical trials at an early date. In addition, we are pursuing several
themes in the non-clinical setting through the acquisition of drug
discovery seeds through open innovation in addition to our own
technologies.
In terms of out-licensing and in-licensing activities during
FY2022, in June 2022 ASKA Pharmaceutical signed a license
agreement with Hyundai Pharm. Co., Ltd. concerning thedevelopment and commercialization rights in South Korea forthe oral contraceptive drospirenone, which is currently underclinical trials in Japan.
In February 2023, we entered into a joint R&D agreementwith Epsilon Molecular Engineering, Inc. (EME) for new drug
creation of next-generation VHH antibodies in the Ob/Gyn area
using EME’s proprietary humanized VHH discovery platform“The Month.” We will continue to expand our development
pipeline by promoting drug discovery research activities.

R&D Status (As of August 2023)
Development code (generic name) / Indication

Research1 Non-clinical 1

Phase I

Phase II

Phase III

Application

Approval

LF111 (drospirenone)

Contraception(Option agreement)

PMS/PMDD 2 drugs under development at Renascience Inc.

Investigator-initiated Phase II ongoing

AKP-022 (Relugolix combination tablet)

Uterine fibroids

Phase I/II ongoing

Theme A

Ob/GynTheme B

Ob/GynTRM-270 (adhesion barrier)

Gastroenterology and Ob/Gyn

L-105 (rifaximin)

Hepatic encephalopathy (pediatric)

Theme CInternal medicine

AKP-009 (ludaterone acetate)

Benign prostatic hyperplasia

AKP-017 (transnasal testosterone)

Urology

AKP-021 (mPGES-1 inhibitor agent)

UrologyPhase III ongoing

Phase III ongoing
Filed

Phase IIa completed 3
Preparing development

The reference to a cervical dysplasia agent has been deleted because a decision not to exercise the option was made.
1. Details of research are not disclosed because it is non-clinical. 2. PMS: Premenstrual syndrome/PMDD: premenstrual dysphoric disorder
3. After receiving the results of the additional Phase I clinical trial, we are again conducting a Phase I clinical trial to reconfirm the data.

Drug Discovery and Alliance Activities
Relugolix combination tablet (AKP-022), the successor product to RELUMINA as a treatment for uterine
fibroids and endometriosis started domestic clinical trials
In July 2023, we started a domestic Phase I/II clinical trial of
Relugolix combination tablet. By proposing the Relugolix
combination tablet as a successor to RELUMINA, we expect to beable to offer a new option as an agent for the treatment ofuterine fibroids (estimated number of patients in Japan: about 2
million). This formulation is a gonadotropin-releasing hormone(GnRH) receptor antagonist created by Takeda Pharmaceutical
Company Limited. Treatment with Relugolix single tablet

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ASKA HD REPORT 2023

(RELUMINA) is effective due to its estrogen-lowering effects.
However, since one side effect can be a decrease in bone mass,
dosing for more than 6 months is generally avoided. Relugolix
combination tablet contains estrogen to suppress the decrease ofbone mass and progestin to suppress the growth of theendometrium caused by estrogen. We are developing it with theaim of enabling long-term treatment for more than 6 months.

7 Overseas Business Development
The International Business Division is working to develop ouroverseas business, particularly in Southeast Asia, a region where
economic development is continuing. The new plant construction
project (in compliance with PIC/S GMP Guidelines) with ourstrategic partner Hataphar, a Vietnamese pharmaceutical company,
will be completed in August 2023. We are preparing to obtain
PIC/S GMP certification by using the expertise the Group has
accumulated through our domestic business. To achieve early
operation and profitability of the new plant, we will actively
carry out collaborative efforts between our two companies tofurther strengthen our framework for cooperation.
With regard to the marketing of our original health supplement
in Jordan, in the Middle East, which we have been working on
since 2021, we have submitted the export application to therelevant authorities in each country and are continuing activities
to obtain approval and start sales at an early date.
Going forward, we will continue to boldly take on thechallenge of expanding our overseas business to further improve
our presence in the Southeast Asia region for the growth anddevelopment of the Company.

TOPICS

Illustration of the new plant in Vietnam

Establishment of the Femtech Business Promotion Unit

The term “Femtech,” blending the words “female” and“technology,” refers to products and services that use
technology to solve various health issues that women facein their various life stages.
There are many focus areas within Femtech, including
menstruation, pregnancy, infertility, childbirth, postpartum
care, childcare, gynecological diseases, among other issues
that women face, as well as items related to sexual wellness.
In Japan, although this domain has not yet been fully
established, it has been attracting particular attention inrecent years. In 2021, for example, the promotion of Femtech

was specified for the first time in government documents
such as the Honebuto no Houshin (“big-boned policies”).
According to a research report (issued by the Ministry of
Economy, Trade and Industry), into the effects (and related
challenges) that changes in the way we work and live will
have on the Japanese economy in the future, the economic
effect of Femtech that facilitates women’s participation in
the workforce will be approximately ¥2 trillion/year as of2025 (menstruation field: approx. ¥240.0 billion; pregnancy
and infertility field: approx. ¥300.0-500.0 billion; menopausal
field: approx. ¥1.3 trillion.)

For around a century since its establishment in 1920, ASKA
Pharmaceutical has been devoted to supporting women’s
health, mainly by providing sex hormone agents. The Femtech
Business Promotion Unit, which we newly established in April
2023, will use the knowledge and network cultivated in the
Ob/Gyn field to offer options for solving women’s healthissues and concerns, which are becoming increasingly diverse
and apparent.
Through our efforts in Femtech, we aim to broadly support

Exhibited at the first Femtech Tokyo

women’s health, to help as many women as possible improve

Tomohito Nagao

their quality of life and play an active role in society, and to

Corporate Officer, Director of
Femtech Business Promotion Unit
ASKA Pharmaceuticallaunch new businesses in this area.

ASKA HD REPORT 2023

29

Explanation of Strategy

Business Conditions

ASKA Animal HealthAiming to be No. 1
in our area of expertise

ASKA Animal Health conducts its business based on the twoto see higher demand for healthcare in the businesspillars of veterinary pharmaceuticals and feed additives, inenvironment related to companion animals due to increased

accordance with the corporate philosophy of “contributing

longevity and the prevalence of testing and diagnostics,

to the creation of a society where people and animals canthere are also concerns that dog ownership in Japan may

coexist by protecting animal health and food safety.” In

not be much growth. Going forward, as well as the need to

FY2022, in addition to a rise in COVID-19 cases due to thedevelop and provide advanced veterinary care, there will be

emergence of the Omicron strain, other events continued toan even greater need to create a society in which people andaffect social and economic activities, including rising energy

animals coexist in harmony. Amid these changes in thecosts due to Russia’s invasion of Ukraine and soaring prices

operating environment, we will continue to fully utilize ourin international commodity markets. The above issues led tovaluable products and industry-leading human resources tohigher feed and material costs, directly impacting livestock,

develop as a company that protects the health of animals

fisheries, and dairy industries in Japan. Furthermore, serious

and all those involved, including producers, veterinary

health-related livestock issues arose with sudden increases

professionals, and owners. In particular, we will continue toin the highly pathogenic avian influenza as well as classicaldevelop activities in FY2023 that will further our progressswine fever, diseases that have been legally classified as

toward becoming number one in our area of expertise.

highly contagious. To this end, as a company with a focus

Fumiyoshi Yamaguchi

on veterinary pharmaceuticals, we must continue to workwith relevant organizations to strengthen the livestock

President, Representative Director

quarantine system. On the other hand, while we do expect

ASKA Animal Health

Main Products

A飼料 飼料添加物

L-バリン、L-イソロイシンはタンパク質を構成する必須アミノ酸で、立体構造が類似しているL-ロイシンとともに、分岐鎖アミノ酸(BCAA)と呼ばれています。
L-バリン、L-イソロイシンは授乳豚用飼料で不足しやすいアミノ酸で、飼料摂取量の少ない若雌や哺乳子豚頭数が多い多産系品種では制限アミノ酸になることがあります。
制限アミノ酸が生じると、乳タンパクの合成ができず母乳の栄養価(乳タンパク率)が低下し、子豚の成長に悪影響を及ぼす可能性があります。
また、BCAAが不足すると母豚の筋タンパクが分解されてボディコンディションが悪化し、発情回帰を遅らせることがあります。
L-バリン、L-イソロイシンの補給により、これらの問題を解決することで、繁殖成績や哺乳子豚の成長改善が期待できます。

【保健衛生上の危害の発生又は拡大の防止のための報告に関する記載】

製品情報 お問い合わせ先
あすかアニマルヘルス株式会社〒108-8532 東京都港区芝浦2-5-1
TEL:03-5439-4188

2303-02

1

Veterinary pharmaceuticals (PA )PRID DELTA
1. PA: Production animal
2. CA: Companion animal

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ASKA HD REPORT 2023

Animal feed additives
L-isoleucine “ASKA”

Veterinary pharmaceuticals (CA2)TRILOSTANE TABLETS “ASKA”

Strengths and Strategies
ASKA Animal Health is carrying out a range of strategies for contributing to animal health with a focus on veterinary
pharmaceuticals such as PRID DELTA TRILOSTANE TABLETS “ASKA,” and animal feed additives L-isoleucine “ASKA.”

PRID DELTA

Strength: Enables injection-free wave control during the estrus cycle of cows

PRID DELTA is an intravaginal progesterone agent that, in combination with estradiol benzoate, synchronizes the estrous cycles ofcows. When inserted into the bovine vaginal tract, this agent causes the blood estradiol concentration to rise and then fall
quickly, continuing to maintain a high level of progesterone concentration in blood. After the agent dissipates, progesterone
levels rapidly decrease, which induces estrus. The 12-day vaginal implantation of this agent in cattle allows for injection-freewave control. This reduces the workload and costs for farmers, who face increasingly tough conditions amid factors such as therising cost of feed. It also lessens the physical burden on cows. We are also carrying out activities through regular lectures andproduct webinars with the aim of educating veterinarians and farmers.

L-isoleucine “ASKA”

Strength: Raises the sales volume of amino acids

L-isoleucine is an essential amino acid, and along with L-valine and L-leucine, it is also referred to as a branched-chain aminoacid. It is often the case that feed for lactating pigs is deficient in this amino acid. Supplementation with other amino acids canimprove reproductive performance, promoting the growth of piglets. This is especially true of first primiparous sows andmultiparous breeds with large numbers of suckling piglets. We are working to promote penetration of this product in the market
with the aim of increasing our overall sales volume of amino acids.

TRILOSTANE TABLETS “ASKA”

Strength: A veterinary pharmaceutical that is gentle on dogs, providing peace of mind for humans

By inhibiting 3 -hydroxysteroid dehydrogenase, one of the enzymes involved in the biosynthesis of adrenal corticosteroid
hormones, this tablet suppresses the synthesis of adrenal corticosteroid hormones in vivo, which improves various symptoms
associated with hyperadrenocorticism (Cushing’s syndrome). This new generic drug comes in three dosages, and as a small tablet
that is easy to swallow for small dogs, which are popular in Japan. A film coating is applied to prevent veterinarians, veterinary
nurses, and owners from absorbing the main ingredients through the skin or through inhalation. This safety feature is particularly
important for women. Through collaboration both internally and externally, we are working proactively to raise awareness of thisagent in the veterinary field.

TOPICS

Initiatives in the Areas of Livestock, Fisheries and Companion Animals

As part of our efforts in the areas of livestock and

By doing this, we will further expand the market for

fisheries, we are carrying out various measures centered

new products, delivering product value broadly to thearound our key product PRID DELTA with the aim ofveterinary medical field. Although we have not disclosed

expanding our share in the breeding hormone

our future development pipeline, we will continue using

preparation market. In March 2023, we held our PRID

our accumulated strengths to expand our lineup of

DELTA Webinar for the fourth time, receiving over 350

useful products, which support the health of animals.

applications. We will continue holding webinars among* Key Opinion Leader (KOL): D
 octors and professionals who have expertise andinfluence in the industry

other activities to provide information to our customers.
In the animal feed additives business, in addition to
L-methionine, which is currently a leading driver of sales,
we will work to increase amino acid sales by further
promoting L-isoleucine, which was designated as a new
animal feed additive by the Ministry of Agriculture,
Forestry and Fisheries in FY2022. In the companion
animal market, we will hold in-house training sessions
that feature KOLs,* prepare informative materials, andfurther strengthen collaborations with other companies.

The exhibit at the 14th WestJapan Veterinary Forum (WJVF)

ASKA HD REPORT 2023

31

Explanation of Strategy

Business Conditions

ASKA Pharma Medical
We will contribute to thecreation of a vibrant, healthysociety through our unique
technologies.

ASKA Pharma Medical specializes in the testing andsignificantly to the efficient implementation of these

diagnostics business based on the corporate philosophy ofhealthcare programs. In particular, the technologies that“contributing to the creation of a vibrant, healthy societymeasure trace amounts from non-invasive, self-collectablethrough the latest measurement technologies.” Utilizing thesamples, such as hair, saliva, and fingernails, can lower theadvanced technologies and abundant know-how we havehurdle to testing. This, we believe, can contribute to higher

cultivated to date, we will contribute to a wide range ofscreening rates. At ASKA Pharma Medical, we are

fields, including basic research, clinical research, andcommitted to using our strengths in high-sensitivity

diagnostics, with a focus on the measurement of steroid

measurement technology to help create a vibrant, healthy

hormones and other bioactive substances.

society for the future.

Recently, with the rapid aging of society, extending
healthy life expectancy has become an important issue.

Junichi Saito

Preventive medicine, improving pre-symptomatic states, andself-medication are attracting attention as approaches to

President, Representative Director

solving this issue. We believe that our proprietary high-

ASKA Pharma Medicalsensitivity measurement technology can contribute

Main Products
Nail stress hormone level
test kit
Cortisol

32

ASKA HD REPORT 2023

Hair stress hormone level
test kit
Cortisol

Hair hormone levelmeasurement kit
Dihydrotestosterone

Hair hormone levelmeasurement kit
Testosterone

Strengths and Strategies
ASKA Pharma Medical is using its highly sensitive measurement technology for endogenous hormones todevelop business in areas such as Femtech and healthcare.

Strengths• Unique high-sensitivity measurement technology using LC-MS/MS* (optimization of measurement conditions,separation and purification technology, and derivatization)• Multi item simultaneous steroid hormone measurement• Ultra-sensitive estrogen measurement• Measurements using non-invasive samples* Liquid chromatography-tandem mass spectrometry

Strategies• Contract measurement of trace samples using high-sensitivity measurement technology (differentiation fromother companies)• Collaboration with related companies on high-sensitivity measurement technology• Development of Femtech-related businesses using ultra-sensitive estrogen measurement technology• Growth of the healthcare business through the development of a non-invasive measurement kit that enables
self-collection of samples

TOPICS

Utilization of Highly Sensitive Measurement Technology for
Endogenous Hormones

ASKA Pharma Medical is using its strengths in highlyLtd. and collaborating with ASKA Pharmaceutical tosensitive measurement technology for endogenous

participate in Femtech-related businesses.

hormones to develop its healthcare business.

Going forward, we will continue striving to serve the needs

In the non-invasive testing business, which is based onof all end users. Creating test kits in a wide range of fields,

high-sensitivity steroid hormone measurement technology,

we will use open innovation to develop biomarkers that

we launched the “Hair hormone level measurement

contribute to better healthcare for all members of society.

kit—Dihydrotestosterone” in July 2021. The kit, whichtargets androgenetic alopecia, can measure hair hormone
levels using a sample of only 1 mg of hair. In FY2023, weare looking to grow this business by expanding test items
and increasing the types of samples that can be used (hair,saliva, and nails). In April 2023, we also launched the “Hairhormone measurement kit—Testosterone” that tests formale menopause. In July 2023, we launched the “Hair andnail stress hormone test kit—Cortisol” that tests for stress.
We are pursuing various initiatives for the future by
applying proprietary technologies through open innovation.
Among these, we are developing next-generation cancer
screening tests through a business alliance with MiRTeL Co.,

Measuring instrument LC-MS/MS

ASKA HD REPORT 2023

33

Foundation for Value Creation

Human Resources
Basic Principles 
A company must link its management strategy and humanresources strategy to achieve sustainable value enhancement. As
such, the Group is working to further reform its human resources
strategy as it aims to become a total health care company witha strong foundation as a specialty pharma company.
Based on the belief that the Group’s most important asset
is its human resources, we regard our employees’ skills andabilities as human capital. We aim to maximize this so that we
can create value.
In terms of maximizing human resources, one of the sevenstrategies for laying the foundation for realizing Medium-Term
Management Plan 2025 is to “Develop Human Resources to
Realize Growth Strategies.” To enhance each organization’s
specialty and ability to create, we are striving to develop andacquire human resources capable of responding to new
businesses and changes in the business and social environment,
and to create a working environment in which a diverse rangeof human resources, including women, career professionals,
and seniors, can play an active role.
The Group strives to promote wellbeing by creating anenvironment that encourages a willingness to learn and respects
diversity. We work to improve engagement by deepening
mutual trust through dialogue between employees andmanagement. We will continue carrying out various humanresources measures aimed at nurturing employees who embracechange and personal growth autonomously. Our aim in doing
so is to build an organizational culture that drives innovation by
fostering diverse values and an entrepreneurial spirit.

Wellbeing We believe that employees who feel happy in themselves canhave a positive impact on their families and on society as awhole and can contribute to the creation of sustainable value.
With this in mind, the Group is committed to creating aworkplace environment that empowers employees to lead
lives that are physically, mentally, and socially fulfilling.

Through various measures aimed at realizing the Group’s
organizational vision, we are creating an environment that
responds to employees’ willingness to learn, respects diverse
values and encourages employees to embrace challenges,
with the aim of realizing their wellbeing. In this way, we are
fostering an organizational culture in which employees
themselves seek change and grow.

Employee Engagement We believe that when employees can relate to our corporate
philosophy, they will align also with our common vision andgoals. Through their various roles, they will then independently
develop initiatives that promote innovation. Based on thisidea, the Group actively creates opportunities for communication
with management, fosters awareness of diverse values andchallenges, and improves the workplace environment andemployee engagement.

We have set indicators for employee engagement, consistingof “vitality, enthusiasm, and immersion” in work, and formental toughness, which focuses on the “ability to solve
problems” when faced with difficulties.
Since FY2021, the Group has conducted an engagement surveyof all employees, which we use as a vehicle for taking in direct
feedback from employees. We aim to foster an organizational
culture in which employees and management build relationships
of mutual trust, working together to drive innovation.

• ASKA Pharmaceutical Holdings Human Resources Strategy and Measures
The idealorganizational vision

The model humanresources

An organization with thestrength to adapt tochanges in theenvironment

An organization thatallows people with diverse
opinions to interact andcreate the best solutions

An organization thatencourages taking onchallenges and evolves

An organization that
continues to be trusted
by society

ChangeDiversity & Inclusion

Challenge

Reliability

Human resources who canskill-up as needed andgrow on their own

Human resources who can
express their opinions andtake positions among
diverse human resources

Human resources who cantake on challenges (risktaking), and turn theminto opportunities

Human resources who
can act reliably withhigh ethical standards
and pride

7 Health management
9 Opportunities for dialogue with management

Developing policies
and environment

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ASKA HD REPORT 2023

1 Human resources system2H uman resources

development

6O ccupational health3D iversity & Inclusion,

Promoting advancementof women4S upport for developing
the next generation
5E
 mployment of people
with disabilities

and safety

10 E
 nhancing our
8 In-house award

systemcompliancepromotion system

Developing Policies and Environment 
1 Human resources system
To realize the growth strategy set forth in the medium-term
management plan that began in FY2021, ASKA Pharmaceutical,
which plays a central role in the Group, introduced a humanresources system in April 2021 aimed at maximizing humancapital.
In this system, as a measure to strongly promote theachievement of the medium-term management plan, we haveintroduced role transition rules and role-based compensation(single rate) based on the clarification of roles to further evolvethe existing role grading system. In addition, we establishedevaluation meetings to ensure evaluations are transparent andfair, and to develop human resources through feedback, whileconstantly optimizing the system.

2 Human resources development
In addition to our human resources system, which empowers
all employees to maximize their individual abilities, we have
put in place training programs linked to the system. These
programs are designed to enable employees to learn anew andgrow autonomously as the environment changes.
Specifically, in addition to mandatory Group-wide training
and level-specific training, we offer a variety of other programs
including elective training programs for developing the next
generation of management leaders; career design training forfemale employees (selective training) to foster awareness ofthe promotion of women’s advancement and to drive
implementation; and talk sessions for promoting gender
diversity. Furthermore, based on the idea of a “self-career docksystem” (self-guided career development), the Group provides
career design training for each age group (35, 45, and 55

years old). We also provide opportunities for consultations
with external career consultants, thereby supporting
independent career development. As such, we have also
created an environment that supports all employees in their
desire to learn. We offer selective training that employees cantake voluntarily and an e-learning system that allows them toparticipate regardless of time and place. In this way, we
promote an attitude of autonomous growth and a willingness
to take on challenges in response to change.
Furthermore, ASKA Pharmaceutical helps employees
advance their careers in their current posts and has also
introduced inter-departmental job rotation and an in-house
recruitment system to promote career change based on
enabling employees to transfer to various other roles.

• Education and Training Structure of ASKA Pharmaceutical Holdings
Mandatory Groupwide training

Officers

Level-specific training

Division-specifictraining

Elective training

Career design training

Selective training

Training for newly assigned officers

New
employees

New employee follow-up training

Prospective
employees

Training for prospective employees

New employee induction training

E-learning

Correspondence courses

Fresher’s Leaders
Mentors

External training course

Third year training
Second year training

Business skill selective training

Training for newly appointed section
chiefs and assistant managers

Leadership

Specialized training by department

Generalstaff

Training for newly appointed executives

Studying abroad/Studying in Japan

Compliance,
mental health,other

Organizational management
Language training

Training for section managers

Training forevaluated employees

Training for department directors

Executives

Evaluator
training

Seniors

Career training by age

ASKA Pharmaceutical
ASKA Animal Health
ASKA Pharma Medical

ASKA Animal Health
ASKA Pharma Medical

VOICE

An environment that encourages a willingness to learn

Go Kakiuchi
Section Manager
System Department
Group Business
Management Division
ASKA Pharmaceutical
Holdings

Through initiatives such as the book summary app and the e-learning system provided
to all employees, I feel that we have created an environment that responds to the desire
to learn and has led to my own growth and the growth of those around me, as well as
the formation of a new community. While continuing my own learning, I nurture mystaff and encourage them to take on many challenges. In this way, I contribute to therealization of the Company’s vision and goals.

ASKA HD REPORT 2023

35

Foundation for Value Creation

3 Diversity and Inclusion
The Group believes that it is important to respect diverse
values in order to achieve sustainable growth and increase
corporate value. By building a diverse organization that is notbound by attributes such as gender, age, nationality, or race,and fostering a corporate culture in which all employees canplay an active role, we will be able to drive new innovations
and achieve sustainable business growth.

Promoting advancement of women
We set an index for the ratio of women in management
positions (central roles in management), and we are developing
female managers by expanding the range of job opportunities,
creating a rewarding workplace, promoting diverse and flexible
work styles, and enhancing training programs so that women
can broadly demonstrate their abilities according to their own
desires. ASKA Pharmaceutical has set a target of 15% for its
percentage of female managers by the end of FY2024 and is
working to foster a workplace environment where womencan fully demonstrate their abilities and play an active role.
As a result of these efforts, the percentage of female
officers and female managers has been increasing year by
year. The percentage of female managers was 9.9% as ofthe end of FY2022.

• Percentage
of Female Managers among Full-Time
Employees of ASKA Pharmaceutical
(%)
15.0
15

9.9

10

6.2

6.6

6.5

2018

2019

2020

Plan period: Five years from April 1, 2020
to March 31, 2025
1. Set the target percentage of female managers at 15%
2. Implement specific initiatives to promote the healthof women
3. Offer diverse and flexible work styles to enhance thework-life balance•P ercentage of Female Board Members (Members of
the Board of Directors and Audit & Supervisory Board
Members) of ASKA Pharmaceutical Holdings Co., Ltd.

TargetJune 2021

June 2022

June 2023

10.0%

16.7%

16.7%

7.1

Percentage of
women

5
0

ASKA Pharmaceutical: Action Plan for
Promoting the Advancement of Women

2021

2022

2024

(FY)

4 Support for developing the next generation
The Group considers the creation of an environment in which
the children of the next generation can be born and raised ingood health to be one of the issues that society must address,
and is promoting efforts to balance work and child rearing.
100% of our female employees have returned to work after
taking childcare leave, and the Group has created anenvironment in which they can raise their children with peaceof mind. For male employees, we have set a new target of
100% childcare leave utilization, which we are promoting
throughout the Group. As a result, the rate had increased to94.7% as of the end of FY2022. Going forward, we will also
focus on in-house training, such as correcting assumptions
about role sharing based on gender differences, in order toimprove the number of days taken for childcare leave.
The entire Group supports employees who are raisingchildren, and all employees participate in society’s efforts to
support the development of the next generation by deepening
their understanding of gender bias correction.

• MaleChildcare Leave Utilization Rate at
ASKA Pharmaceutical
(%)
100

94.7

100
Target

80
60

50.0
40.9

45.5

45.5

40
20
0
2018

2019

2020

2021

2022

2024

(FY)

Note: Percentage of male employees whose spouses gave birth during the fiscal
year who took childcare leave

5 Employment of people with disabilities
The Group strives to create a workplace environment in which
all people, regardless of whether or not they have disabilities,
can work with vigor and enthusiasm. ASKA Pharmaceuticalhas set a target of 2.3% for the employment rate of persons
with disabilities. By working together, we are striving to share

36

ASKA HD REPORT 2023

new discoveries and knowledge and to foster a culture ofmutual recognition.
We aim to be a group where all human resources canmaximize their abilities and feel a sense of fulfillment as theywork toward the realization of an inclusive society.

6 Occupational safety and health
The Group is committed to occupational safety and health,placing the highest priority on workplace safety and physicaland mental health. In response to these issues, ASKA
Pharmaceutical has established a safety and healthmanagement system at the Shonan Research Center, Iwaki
Factory, and at its head office and each of its sales offices, andholds regular Safety and Health Committee meetings. The
Safety and Health Committee monitors long working hours,
conducts workplace safety inspections and other safety andhealth-related risk checks, and implements corrective andpreventive measures on a monthly basis. To prevent accidents

and disasters, as well as to minimize damage should those
events occur, each business location has establishedemergency response procedures and conducts periodic drills.
We continue to provide accurate information about safety
and health for each employee to internalize and act upon as
we work to create a workplace environment where employees
can work comfortably and with peace of mind. In addition,
various safety and health-related discussions held between
labor and management are useful for improving the workplaceenvironment and working style.

7 Health management
The Group sees human resources as the driving force that
advances our business activities based on our corporate
philosophy. We consider the mental and physical health of all
employees from a managerial perspective, aiming to maintaina balance between health management and work stylereforms. In this way, we aim to further improve productivity
and creativity and become a company that grows sustainably.

• HealthManagement Promotion Structure of ASKA Pharmaceutical Holdings
Health InsuranceSociety

Cooperation

Periodic health checkups
Specific health guidance

Senior Managing Member of the Board of Directors,
Representative Director
Director of Human Resources Department

Cooperation

Cooperation

Labor Union

EAP (Employee assistanceprogram) Services

Industrial physician/Occupational health nurse Cooperation Human Resources Department

Professional staff
Free 24-hourcounseling

Healthcare manager at each business location(One executive member and one general staff member appointed as the responsible persons)Consultation

Consultation
Executives

Consultation
Consultation

Consultation

Consultation

Consultation

All Group Employees• HealthManagement Goals of ASKA Pharmaceutical Holdings

Step 2

Step 1By FY2020

HealthMaintenanceandPromotion

Step 3

FY2021 to FY2025

Assess mental and physical health
Percentage of employees receiving
periodic health checkups: 100%
Plan
Percentage of employees
receiving stress checks: 100%
ActionImprove lifestyle habits
Exercise, sleep, diet,smoking, drinking,mental care
Do

Health managementtargets
Plan
ActionCheck

Work Style
Reform

Improve presenteeism
Improve engagement

Check

Promote work-life balance

Promote work-life balance

Improve paid leave utilization rate
Reduce long working hours

Practice diverse and flexible
work styles
Improve work engagement

The Group has established and is working toward goals
tailored to the health-management stage of each Group
company. In particular, in terms of understanding employee’sDomental and physical health, which is the foundation of healthmanagement, we maintain a 100% regular health checkup
rate and a 100% stress checkup rate for the entire Group.
ASKA HD REPORT 2023

37

Foundation for Value Creation

ASKA Pharmaceutical is working to promote improvement
in lifestyle habits and improvement in work-life balance basedon respect for diverse values, and has set numerical targets forthese efforts for the years up to FY2025.
We are also enhancing our social contribution activities
through health-related initiatives by linking the identity that

the Group has cultivated to date with health management.
Through a continual process of evolving and deepening, we
will promote health management from various angles so that
employees, organizations, and society as a whole can sharehappiness that has the value of health.

A Work Style in Which Diverse Values are Respected
ASKA Pharmaceutical has introduced various systems to support
the diverse work styles of employees. In 2019, it introduced aflex-time system for all offices except for discretionary workers
and Iwaki factory workers. In 2020, it introduced a full-flex-timesystem with no core hours for even greater flexibility. Various
other systems have been introduced, such as an hourly annual

leave system, reduced schedules and time-differentiated work,
work from home, and remote work, allowing employees tochoose work styles that suit their diverse values. This highdegree of flexibility improves employees’ self-management
ability and fosters a workplace culture in which they can growand challenge themselves.

VOICE

Use of work-from-home system and full-flex-time system

Yusuke Suzuki
Section Manager
Clinical Development
Department
Development Division
ASKA Pharmaceutical

I instruct my staff to work remotely or come to work, based on productivity and efficiency
considerations and through discussion. In addition, employees are taking advantage ofthe full-flex-time system and voluntarily choosing their working hours.
I feel that these factors have helped foster an awareness of results and self-management
skills, contributing to a higher level of engagement.

8 In-house award system
The Group has established a system (the Group Award System)
aimed at fostering a sense of unity and improving motivation
within Group companies. Various challenges and achievements,
such as cultural and social contributions, are selected fromthroughout the Group, and the President of ASKA Pharmaceutical

Holdings personally presents the awards. Each Group
company also has its own award system aimed at increasing
employee motivation. The president of each company
personally presents awards to employees for theirachievements, rewarding their initiative and ingenuity.

9 Opportunities for dialogue with management
The Group actively provides opportunities for dialogue
between employees and management. ASKA Pharmaceuticalaims to ensure that all people involved in the company, notjust employees, respect each other’s diverse values so that it

can become an organization that creates optimal solutions andinnovation. To this end, it provides the following opportunities
for dialogue to improve employee engagement.

• Dialoguewith Management in FY2022 (ASKA Pharmaceutical Co., Ltd.)

38

Takashi Yamaguchi

Atsushi Maruo

Sohta Yamaguchi(Member of the Board of
Directors, Representative
Director, Chairman of the Board)(Member of the Board of
Directors, Vice Chairman of
the Board)(President, Member of theBoard of Directors,
Representative Director)

Overall

Numberplanned

3

6

8

9

Number held

7

17

74

98

ASKA HD REPORT 2023

• Details
of Dialogue with Management in FY2022 (ASKA Pharmaceutical Co., Ltd.)
Name

TargetTown Hall
Meetings

All employees

Content

Numberof times

Held with the aim of instilling the management vision among
employees. The President directly explains topics such as the Group’s
vision, progress on the medium-term management plan, and businessexecution policies to employees, and answers their questions.

13

Held with the aim of shortening the distance between employees
and management and improving employee engagement. Thesemeetings are an open forum for top management to hear thethoughts and opinions of employees and for employees todirectly hear the thoughts and messages of top management.
Employees ranging inage from their 20s totheir 40s, selectedfrom each division

Roundtable
Meetings

18

Dialogue with
employees

Department
directors, etc.

Held with the aim of sharing information and strengthening
collaboration between the department directors and management.
This is an important initiative for delivering management
strategies to each organization in greater depth and ensuring its
implementation. It also contributes to strengthening leadershipand improving the performance of the entire organization.

Irregular

Dialogue withmanagement inselective training

Selected training
participants

Held with the aim of cultivating the next generation of leaders
who will be responsible for the future ASKA Pharmaceutical
Holdings. By directly sharing the company’s vision and
expectations of each role, we aim to boost motivation anddemonstrate leadership with a willingness to take on challenges.

1

Workplace talksessions

Labor union officers(all central committee
members and central
executive committee
members belonging
to each branch)

Held with the aim of promoting discussion and deliberation
between labor and management on the theme of the working
environment and work styles at each workplace (branch).

1

Labor union central
executive

Held with the aim of improving working conditions and developing
the company. These discussions cover working condition requirements,
the working environment (safety and health aspects), and thecompany’s management and productivity. They help build a good
relationship between labor and management by promoting
communication and deepening mutual understanding.

2

1 : 1 Meetings
with thePresident

Dialogue withthe labor union
Labormanagement
meetings

VOICE

Opportunities for dialogue with top management atroundtable meetings

Haruna Wakatsuki
Endocrine Business Unit
ASKA PharmaceuticalThrough the opportunity to communicate with top management at the roundtable
meeting, I was impressed by their aspirations for the thyroid area. It reminded me of thecompany’s special mission. I am proud when I realize that my role in the organization
will lead to the proper treatment of many patients. I will continue to take pride in mydaily work.

10 Group compliance promotion structure
We have established a department to promote and supportcompliance within each Group company and developed thenecessary internal systems, and rules and regulations. The
structure we have created facilitates the prompt handling ofcases, the formulation of measures to prevent violations, andother measures. This means that officers and employees canengage in corporate activities with peace of mind.
To increase our employees’ awareness of compliance, weare conducting compliance education for each job level whileworking to grasp the level of employee awareness throughquestionnaire surveys and to identify points for improvement.

In FY2022, drawing on the results of the complianceawareness survey, we worked for more thorough complianceby gaining a greater understanding of the current situation,
identifying problems, and conducting training and problem
solving based on actual conditions. The Group Compliance
Promotion Committee has been established to supervise theGroup’s efforts toward recognizing and responding to risks
that could have a significant impact on Group management
and promoting a compliance system that thoroughly complies
See page 50 for details.
with laws and corporate ethics.
ASKA HD REPORT 2023

39

Foundation for Value Creation

R&D for Sustainable Growth
In this section, we deliver messages from the heads of three different divisions. These divisions focus on
R&D that furthers growth at ASKA Pharmaceutical, the core of the ASKA Pharmaceutical Holdings Group.

Aiming to be an organization with the competitive strength to respond to change
The role of the Development Division is to ensure the efficient

clinical trial for endometriosis by using ePro.* This system

implementation and quality of clinical trials, and to obtainprovides a digital record that ensures the reliability of data,approval from the government as quickly as possible. In recent

enabling the quick delivery of pharmaceuticals to patients

years, multiple clinical trials are in progress simultaneously,

suffering from endometriosis.

leading to stronger demands for greater efficiency while

Social attitudes to issues affecting women are changing,

maintaining quality. Therefore, for us to grow into a competitive

and as the division responsible for development in a leadingorganization, each of us must raise our level of specialization.

company in the field of Ob/Gyn, we aim to develop

Amid rapid changes in the environment, there are also
signs of a change in trial methods as various digitaltechnologies are adopted. In the field of Ob/Gyn, theDevelopment Division has managed to advance to Phase III

innovative pharmaceuticals that will improve the health andquality of life of women.
* ePRO (electronic Patient-Reported Outcome): A system that enables monitoring ofpatient/subject information in real time

Using flexible and new ideas to tackle the challenge of introducing products and optimizing value
Currently, there is an emphasis on health management that

Women’s place in society is changing, and there is also aleads to improved productivity and corporate performance,need to consider diversity and individual differences.

while at the same time addressing important women’s health

The mission of the Business Development Division is to

issues and creating a society in which women can work

contribute to the medium - to long- term growth strategy by

comfortably. ASKA Pharmaceutical is committed to solving

optimizing the Company’s portfolio and enhancing the value

women’s health issues by delivering effective pharmaceuticals,of its assets. In continuously delivering valuable products,

such as those for endometriosis and dysmenorrhea. Women’s

whether they are developed in- house or by other companies,

health issues vary significantly at each life stage — fromand to respond to diverse needs and changes, we strive tochildhood, puberty, and sexual maturity through tostay one step ahead each day, and will examine our challenges

menopause. For this reason, women require comprehensivefrom multiple angles with a fresh and flexible mindset.

support in addition to measures targeting certain diseases.

The challenge of cutting-edge drug discovery research through the promotion of open innovation
I was appointed as a Division Director of the Innovative DrugTo realize ASKA Pharmaceutical’s goal of “Contributing to

Discovery Division in July 2023. After working in drug discovery

women’s health,” the Innovative Drug Discovery Divisionresearch at a major pharmaceutical company, I launched afocuses on discovering drugs for diseases specific to women,

drug discovery venture company and managed its researchsuch as menstruation-related diseases, endometriosis, infertility,

laboratory. I have also been involved in drug discovery throughand menopausal disorders. By combining new technologies

various roles, including working at university departments inusing open innovation with the experience in endocrine

industry-academia partnerships. I will fully apply my experiencehormone research that we have accumulated over the years,

in drug discovery and use the network I have built up to create

we will drive major innovations. I will lead our researchers as

innovative products.

a team as we conduct our drug discovery research so that we
can create a society in which women can thrive.

40

ASKA HD REPORT 2023

Overview of the Development Division and its initiatives
The Development Division comprises the Development Planning Department, which
formulates clinical development strategies, and the Clinical Development Department,
which conducts clinical trials in line with those strategies. These departments work
together to assess the efficacy and safety of developed products with the goal ofdelivering effective pharmaceuticals to patients as quickly as possible.
We are developing a number of products that are in various stages of the pipeline.
In the Ob/Gyn field in particular, a contraceptive that is expected to reduce the riskof thrombosis, an issue with existing contraceptives, has advanced to Phase III, thefinal stage, while an agent for uterine fibroids that can be administered long term
will begin Phase I/II clinical trials. Going forward, we will continue to develop
pharmaceutical products that contribute to the health of women.

Masaya Takanashi
Corporate Officer
Division Director,
Development Division
ASKA PharmaceuticalO verview of the Business Development Division and its initiatives
The Business Development Division comprises the Medical Affairs Department, theBusiness Development Department, and the Portfolio Management Department. It
focuses on forging ASKA’s future through initiatives such as (1) optimizing productvalue by building knowledge, (2) acquiring new products through licensing andalliance activities in Japan and overseas, and (3) optimizing the portfolio bystrengthening the field of Ob/Gyn and planning strategies for new fields.
In March 2023, we established a corporate venture capital (CVC) fund. With thisinitiative, we will accelerate open innovation with start-ups and other companies
and sow the seeds for commercialization, including in the peripheral area ofprescription pharmaceuticals known as “around the pill,” as we work to offer
solutions to women’s health issues.

Junko Komatsu
Corporate Officer
Division Director,
Business Development Division
ASKA PharmaceuticalO verview of the Innovative Drug Discovery Division and its initiatives
At Shonan Health Innovation Park, the Innovative Drug Discovery Division carriesout research to create new drugs to treat diseases specific to women so that women
can be healthy at each stage of their lives. For this reason, we strive to seek out
opportunities to communicate with obstetricians and gynecologists so that we canunderstand the true unmet medical needs of patients. We also actively promote
open innovation by engaging with other tenants at Shonan Health Innovation Park,
as well as partners from industry, government, and academia. By integrating ideas
and technologies obtained through these collaborations with our own technologies,
we will create innovative new drugs through new perspectives.

Shuzo Watanabe
Division Director,
Innovative Drug Discovery Division
ASKA Pharmaceutical
ASKA HD REPORT 2023

41

Foundation for Value Creation

Reliability Assurance
Message from the Division Director of the Quality & Safety Assurance Division
In Japan, women now account for approximately 45% of the workforce as more and more women havetaken on greater and more fulfilling roles in society. In addition, as society enters an era of 100-year
lifespans, the social environment that people find themselves in, especially women, is constantly changing.
Supporting women’s health is vital as they go through life events such as pregnancy, childbirth, andchildcare, in addition to helping them continue to live and work with greater meaning regardless of theirage. Each of our employees has a sense of personal pride, and as a company we strive to achieve our aimof ensuring proper manufacturing, reliable quality, and correct use of the Company’s pharmaceuticalproducts, so that all people, not just women, can lead vibrant and healthy lives.

Maiko Mori
Member of the Board of Directors,
Executive Corporate Officer,
Division Director of Quality & Safety
Assurance Division
ASKA Pharmaceutical

Basic Principles 
The Quality & Safety Assurance Division of ASKA Pharmaceuticalis responsible for ensuring compliance with the Law on Securing
Quality, Efficacy and Safety of Products Including Pharmaceuticals
and Medical Devices and other laws and ministerial ordinances, aswell as the Good Quality Practice (GQP), and the Good Vigilance
Practice (GVP) standards, ensuring the quality and safety of ourpharmaceutical products, and supporting a stable supply. We

carry out our responsibilities based on high ethical standards anda sense of mission so that medical professionals and patients canuse our pharmaceuticals with confidence and peace of mind.
Our basic policy is to ensure that our pharmaceuticals are
manufactured correctly, and to provide information on theproper use of our pharmaceuticals, and as such, contribute to
medical care.

Reliability Assurance Initiatives Japan relies on other countries for many raw materials,
including active ingredients. Now, more than ever, we need tostrengthen our relationships with overseas manufacturing
plants and partner companies so that we can continue toprovide a stable supply of pharmaceuticals with the same quality
and safety assurance levels that we have always done. ASKA
Pharmaceutical complies with all laws and regulations andpromotes the strengthening of quality systems, safety measures,and proper use of its products. At the same time, we maintainclose collaboration between the three officers within theMarketing Authorization Holder of Medical Products and relevant

divisions. The Quality & Safety Assurance Division undertakes
various initiatives to keep up with the latest developmentswith the aim of achieving continued growth. As such, it isrefining its expertise and information-gathering capabilities,
improving its communication and problem-solving skills, aswell as its ability to operate effectively in the English languagewith the aim of forming win-win relationships with overseas
manufacturing plants and building and developing organizations
and human resources trusted by all partner companies.
For details, please visit our website.
https://www.aska-pharma-hd.co.jp/english/csr/social/#anc6

Sales
Message from the Division Director of the Sales Division
The Sales Division covers all of Japan (six regional departments), employing approximately 200 medical
representatives (MRs). It provides information to physicians and pharmacists who are at the forefront of
medical care to ensure that ASKA Pharmaceutical products are used properly. In addition, the company’shead office supports the activities of MRs by providing promotional strategies for each product and MR
support information systems. Even when business activities were constrained during the COVID-19
pandemic, we made every effort to maximize product potential by utilizing a three-pronged approachthat effectively fused digital and real-world activities. We are committed to building the best sales force
that can meet medical needs by ‘One Step Beyond’ efforts from now on as well.

Yutaka Kaihori
Member of the Board of Directors,
Executive Corporate Officer
Division Director of Sales Division
ASKA PharmaceuticalPharmaceutical Information Provision Activities 
Obstetricians, gynecologists and co-medical staff support
women’s health, which is vital for women’s success. To deliver
necessary information in a timely manner, ASKA Pharmaceutical isdeveloping a hybrid approach that blends online and in-person
interviews between MRs, academic staff, and the head officemarketing department. We have been holding an increasing
number of seminars co-sponsored by academic societies andlectures that are also held in a hybrid way. We are also working
to create opportunities for online participation in various lectures
across the country, for which medical professionals have shown

42

ASKA HD REPORT 2023

strong appreciation. ASKA Pharmaceutical will continue working
to deliver the information that obstetricians and gynecologists
need, including information on the proper use of our products.
In doing so, we will
help bring about asociety where
women thrive.

Activities of Health Lab Mint+ for Women’s health
Knowing yourself, is protecting yourself
The key message of Health Lab Mint+ for Women’s health is “Knowing yourself, is protecting
yourself.” The website “Health Lab Mint+ for Women’s health” is a public service that provides
women with accurate information about their bodies and health:
https://www.aska-pharma.co.jp/mint/ (Japanese version only).

Disseminating Women’s Health Information through the Mint+ Website
The Mint+ website is overseen by specialist physicians and other experts. It provides easy-to-understand explanations ranging from basic
knowledge of women’s bodies to changes in their physical condition accompanying hormonal changes at each life stage, andinformation on diseases specific to women. We also provide tips for women with a food-based approach to help them lead healthy
everyday lives. We strive to pick up broadly on concerns that women have about their bodies that they tend to keep to themselves andon disorders or worries they cannot put into words. We work to provide information and refine our content in the hope that we canalleviate women’s anxieties by conveying accurate information and to be a pillar of support for them to lead healthy lives.

Activities of the Project to Promote Women’s HealthStarting from Food
We are working to further develop activities tohelp more women lead healthy and fulfilling lives
amid a growing interest in women’s health issues
and the increasing importance of food. In
September 2021, we launched the Project toPromote Women’s Health Starting from Foodwith ABC Cooking Studio Co., Ltd.’s ABC
HEALTH LABO. As part of this project, we offer online seminars in which doctors andother experts explain women’s health issues. These explanations are supported bynutritionists who present information on nutrition and give demonstration lessons forcooking with ingredients (nutrients) that help relieve certain symptoms. In FY2022,
we held two seminars, on the topics of the thyroid and menstruation, respectively.

Exhibited at Femtech Tokyo
Together with ASKA Pharma Medical, we
exhibited at the first Femtech Tokyo
exhibition (Date: October 20-22, 2022,
Venue: Tokyo Big Sight, Organizer: RX
Japan Ltd.). The event showcased Femtechand Femcare products and services that canhelp resolve issues at the various life stagesof women. For Mint+, we introduced
activities that support women’s health bydisseminating accurate information about
women’s bodies and health.

Activities for the Younger Generation

Mint+ teens website+

Mint teens, launched in August 2021, provides teenagers withinformation about changes in physical condition related to female
hormones. The website includes videos that are set in a high school
and feature the story of four students attending a special classtaught by Teacher ASKA. The videos address real questions andconcerns of high school girls, aiming to deepen their knowledge
about their bodies and female hormones. The website is alsoenriched with illustrated content that provides easy-to-understandexplanations related to physical care, questions, and concerns.

Launch of Mint+ teens Instagram accountIn March 2023, we launched a Mint+ teens
official Instagram account as a new point ofcontact with teenagers. The account sharesinformation on the physical changes associatedwith hormonal changes, in line with teenagers’
school life and events. We provide an accessible
and trustworthy resource for high school girls
by sharing accurate information to alleviate
their anxiety.

Sponsored the Comprehensive Sexual
Education Project
We sponsored the Comprehensive Sexuality Education Project,
an initiative promoted by the Asahi Gakusei Shimbun Company
and Dentsu Inc. aimed at creating opportunities for elementaryand junior high school students and their parents to obtainaccurate information about sex (sexual education). For Mint+,
we held an online seminar for elementary school students andtheir parents that introduced the topic of menstruation. Dr.
Kuniko Tsukada, Director of Atlas Ladies’ Clinic, gave aneasy-to-understand explanation of the changes in the bodies
of boys and girls, the changes that occur until women have ababy, and how to safeguard one’s own body.

Distribution of health and physical education
supplementary materials for high school students
In 2023, we published health and physical education
supplementary material for high school students entitledHigh School Students “Now” – The Female Body: What You
Should Know. We distributed this to educational institutions
nationwide as a sex-education resource to provide students
with accurate information about menstruation and contraception.

ASKA HD REPORT 2023

43

Foundation for Value Creation

Messages from Outside Directors
With a focus on the sustainable growth of ASKA Pharmaceutical Holdings, we present messages from three
Outside Directors. They provide insights from their professional and objective perspectives, as well as their
expectations for the future of the Group.

Working for women’swell-being
Yasunori Yoshimura
Member of the Board of Directors, Outside Director
ASKA Pharmaceutical Holdings

A passive approach to growth is not an option for ASKA

One of ASKA Pharmaceutical Holdings’ missions is to

Pharmaceutical Holdings or many other Japanese companies

contribute to women’s health and medical care using its

in this era of declining birthrates and aging populations.

long-standing relationships of trust and its network with

“Vertical expansion” is limited to current products and theobstetricians and gynecologists. To this end, it is also

domestic market. A second, perhaps more effective strategy

important to add new and outstanding products and services

for growth is “Horizontal expansion.” This would include

in this field. As an Outside Director with expertise in identifying

adding new products and services to the existing customer

and introducing new overseas businesses, I will help create abase or expanding the sales channels of existing products inmechanism for gathering new business opportunity information.

specialized fields to overseas markets.

When the Company analyzes and judges the information
gathered, it is my mission to offer business advice while leaving
technical judgments to the experts.

Toward further
sustainable growth
Yasuji Enokido
Member of the Board of Directors, Outside Director
ASKA Pharmaceutical Holdings

44

ASKA HD REPORT 2023

People are born, grow up, mature, raise children, grow old,
and their lives eventually come to an end. In recent years,
women’s roles in this lifecycle have undergone major changes.
A growing number are choosing to build careers. And as
more women enter higher education, they are delaying
marriage and having children later in life. These trends,
combined with the fact that a growing number of womenremain single, have led to a decline in the birthrate. As thesocial landscape for women changes, so too does the natureof the health issues they face, and addressing those healthissues is becoming increasingly important. In a society withan extremely low birthrate, and one with a declining
working-age population, there are high expectations for
women to play active roles. Companies need to provide
environments and foster cultures in which women can work
comfortably. As we are a flagship company for women’s

medicine in Japan, it is more important than ever that we
consider the life and career plans of women and provide
supportive working conditions. We must put the principles
of healthcare into practice on our own so that we can
improve productivity.
Providing opportunities for women to play an active rolein the Company leads to innovation, revitalization of theorganization through reforms in work styles, reduction incorporate risks through diversity, and improvement incorporate value. Diversity is vital not only in terms of fairness
but also for promoting corporate growth and technologicalinnovation. Recognizing this, we will fulfill our responsibility
to incorporate the concept of “Co-creation” into ourmanagement perspective. This concept means generating
things that contribute to the future by cooperating with adiverse group of stakeholders.

Contributing to women’s health bylearning from overseas Femtech projects
Minoru Awabayashi
Member of the Board of Directors, Outside Director
ASKA Pharmaceutical Holdings

The two main focuses of ASKA Pharmaceutical Holdings aretechnology evolves. As industry and country boundaries

women’s empowerment and animal welfare. By quickly

continue to diminish, it is increasingly crucial to adopt a

identifying the trends of these two focuses, and allocating

forward-thinking strategy. This entails focusing on

management resources appropriately, ASKA has continuallymonitoring technological trends like AI and quantum

achieved sound business growth. In the future, people’s

computing, while actively pursuing international expansion.

awareness of social issues will deepen further, andI recognize that a key role of Outside Directors is to oversee

stakeholders will assess companies more strictly. With this in

the development and implementation of strategies from amind, I am committed to making sound business decisions

broad perspective, and to develop human resources andwhile constantly raising and answering the simple questions,organizations to achieve these goals. I am determined to“Is this good or bad for society? Is it right or wrong?” Thefulfill my duties with this overarching perspective in mind.

business environment is also changing dramatically as

ASKA HD REPORT 2023

45

Foundation for Value Creation

Corporate Governance/Compliance/Risk Management
ASKA Pharmaceutical Holdings (the “Company”) aims for sustainable growth and improvement of corporate
value over the medium to long term for itself and its Group companies and is continuously working to build
and strengthen the best and most effective corporate governance structure as the basis for achieving this aim.

Basic Principles 
We always pursue and continually work to maintain the best corporate governance in line with the following basic
principles.
1. We will strive to effectively secure the rights of shareholders and will ensure shareholder equality.
2. We will strive to cooperate fully with stakeholders and will foster a corporate culture and climate that respects the
ethics of sound business practices.
3. We will appropriately disclose the Company’s financial, management, and other information to ensure transparency.
4. The Board of Directors will establish an environment where bold management decisions are made based on corporate
strategies and will conduct highly effective supervision of directors.
5. We will engage in constructive dialogue with shareholders.
The full text of the Basic Principles is available on the Company’s website.
https://www.aska-pharma-hd.co.jp/english/invest/governance/#anc1

Corporate Governance Structure 
Under the Company’s corporate officer system, Corporate Officers execute business and members of the Board of
Directors concentrate on management and supervision functions.
General Meeting of Shareholders
Appointment/Dismissal

Appointment/Dismissal
AdviceAccounting Auditor

Audit &
Supervisory
Board

Audit

Board ofDirectors

Findings

AdviceReportCooperation

Instruction
ReportAudit
Department

Audit

Internal Audit

Group Nomination
Committee
Group Remuneration
Committee
ESG Committee

Management Supervision

Compliance
Promotion
Committee

Consultation

Representative
Directors
Management Council

Direction andSupervision

Business Strategy Meetingof the Group

AdviceConsultation

Corporate Officers

Operating Departments

Report/ProposalReport/Proposal

Corporate Lawyer

Appointment/Dismissal

Group Companies
ASKA Animal Health Co., Ltd.

Board of Directors
The Board of Directors meets basically once amonth and also holds special meetings as needed.
It makes decisions on business execution policies
and other important matters concerning business
operations and supervises the execution ofbusiness operations.

46

ASKA HD REPORT 2023

ASKA Pharmaceutical Co., Ltd.

ASKA Pharma Medical Co., Ltd.

Key Items Discussed by the Board of Directors• I mportant management agreements• Disposition of important Company• Compensation for Board Members• Accounts and budget, General• Personnel change• Organizational revision• Work rules and corporate regulations• P rojects related to Group companies

property

Meeting of Shareholders

Management Council
Management Council meetings are held basically once a monthto deliberate/make decisions on management-related issues, andto examine important issues including management policies
and strategies.

Business Strategy Meeting of the GroupTo ensure the appropriateness of business operations, theCompany has established a supervisory department responsible
for managing Group companies in an integrated manner. The
Company also holds the Business Strategy Meeting of the Groupfour times a year to share information.

Group Nomination Committee and Group
Remuneration Committee
The Group Nomination Committee and Group Remuneration
Committee have been established as advisory committees
independent from the Board of Directors in order to enhance
the fairness and objectivity of the deliberation process regarding
the nomination and compensation of Board Members.
Each committee is composed of representative directors,
senior managing members of the Board of Directors or higher
with special titles, and Outside Directors. The majority ofcommittee members are Outside Directors, and the committee ischaired by an Outside Director to ensure independence.

Key Items Discussed by the Group Nomination
Committee and Group Remuneration Committee
Group Nomination Committee:• Discussion on the procedures for the election of directors
 ecision on the contents of the report to the Board of Directors•DGroup Remuneration Committee:• Identifying issues and items to consider for remuneration for
Board Members and exchanging opinions

 iscussion on the amount of remuneration for Board Members•D ecision on the contents of the report to the Board of Directors•D

Auditing Structure
We have adopted a company with an Audit & Supervisory Board
structure in order to audit the execution of duties by membersof the Board of Directors from a standpoint independent of theBoard of Directors. The Audit & Supervisory Board, consisting offour members including two outside Audit & Supervisory Board
members, meets once a month in principle to discuss and resolve
important matters related to audits and to confirm matters to be
discussed at Board of Directors meetings in advance.
For external audits, the Company has concluded an audit andquarterly review contract with Seiyo Audit Corporation as its
accounting auditor.
For internal audits, we have established an Audit Department,
which conducts audits of Group companies from a fair andindependent standpoint. Furthermore, the Audit Department
evaluates the status of internal control systems regarding
financial reporting and its operation.

Outside Directors
We appoint at least two independent Outside Directors to theBoard of Directors. They satisfy the Standards for the Independenceof Outside Directors and provide guidance and advice to ourmanagement as appropriate utilizing their wealth of independent
insight and knowledge.
Currently, we believe we have established an optimal
governance structure with three independent Outside Directors
as members of the Board of Directors.

ESG Committee
The ESG Committee has identified 11 material issues from theperspective of relevance to the Group’s business and social
contribution, and it has established a Company-wide action plan
and KPIs for each of them. In particular, we believe that
contribution to women’s health and contribution to animal healthare two material issues that are characteristic of our business andin which we can demonstrate our strengths and originality.
See pages 16-17 for details

In addition, we consider climate change issues to be one of
the management issues that affect our business, and we disclose
information on climate change in line with TCFD recommendations.
As a company involved in life-related issues, and as a memberof society and the community, the Group broadly contributes tosociety by promoting ESG (environmental, social, and governance)
initiatives, thereby contributing to the achievement of the SDGs
(sustainable development goals).

Evaluations of the Effectiveness of the Board of Directors To grasp the current status of and make further
improvement in the effectiveness of the Board of
Directors, we conduct questionnaires of all directors andall Audit & Supervisory Board members annually. Afterevaluating and analyzing the results of the questionnaire,
we confirm that the Board of Directors of the Company

is functioning properly and that the effectiveness of theentire Board of Directors has been ensured.
Based on the results of this evaluation, we will further
enhance the functions of the Board of Directors andstrive to improve the effectiveness of the Board of
Directors in the future.

Implementation Guidelines (FY2022)• Target group• Evaluation method

Board Members (All eight Membersof the Board of Directors and all four
Audit & Supervisory Board members)

1. Conduct a questionnaire survey of target group(five-rating scores and free form answers;
anonymous)
2. Analyze contents of answers
3. Provide feedback to the Board of Directors
4. Work to further enhance functions of the Boardof Directors• Main items of the survey• Composition of the Board of Directors• Operation of the Board of Directors• Contents of deliberations at theBoard of Directors• System for supporting the Boardof Directors

ASKA HD REPORT 2023

47

Foundation for Value Creation

Skill Matrix Experience, knowledge, and expertise1

Membersof theBoard ofDirectors

Name

Years ofservice

Inside/OutsideGenderTakashi
Yamaguchi

2 years and3 months

InsideMale

Atsushi Maruo

2 years and3 months

InsideMale

Sohta
Yamaguchi

2 years and3 months

InsideMale

Maiko Mori

1 yearInsideFemaleFumiyoshi
Yamaguchi

1 yearInsideMale

Yasunori
Yoshimura

2 years and3 months

OutsideMale

MinoruAwabayashi

Newlyappointed

OutsideMale

Yasuji
EnokidoNewly
appointed

OutsideMale

2 years

InsideMale

InsideMale

OutsideMale

OutsideFemaleIkuo Kumano

2 years
Audit & Yuichiro Fukui
Supervisory
2 years andBoard
Takao Kimura
3 months
Members

Keiko Fukuchi

2 years and3 months

Corporate
management

R&D /Intellectual
property

Sales /
Marketing

Medical /Pharmacy
expertise

Finance /Accounting

Legal / Risk
management

Sustainability /ESG

Notes: 1. Indicates up to three skills in which the members of the Board of Directors and Audit & Supervisory Board members possess particularly high expertise and which are
expected of members of the Board of Directors and Audit & Supervisory Board members.
2. indicates the chairman for each committee.
3. Number of meetings attended in FY2022 are not shown as they are newly appointed directors.

Reasons for Selection of Skills
Skill items

Reasons for selection of skills

Corporate
management

Amid major changes and mounting uncertainty in the business environment, we must formulate and promote a medium- to longterm sustainable growth strategy that will enable us to realize the Group’s goal of becoming a total healthcare company with astrong foundation as a specialty pharma company. For this, we need directors with extensive knowledge, experience, and a trackrecord of achievements in not only the medical and pharmaceutical industries but also in general corporate management.

R&D / Intellectual
property

To continue creating products that meet unmet medical needs, it is essential that we strengthen our R&D capabilities throughopen innovation and globalize intellectual property activities. We need directors who have strong knowledge, experience, and a
track record of achievements in the fields of R&D and intellectual property to promote these activities.

Sales / Marketing

The business environments for medical care and animal health are rapidly changing. Against this background, we must continue
providing information on the proper use of drugs and products by using digital-driven sales and marketing strategies. For this, weneed directors who have strong knowledge, experience, and a track record of achievements in sales and marketing.
In order to realize the Group’s goal of becoming a total healthcare company, we need directors who have strong knowledge,

Medical / Pharmacy
experience, and a track record of achievements in the fields of medicine and pharmacy to widely contribute to human and animal
expertise
health, which ranges from prevention, testing, diagnosis to treatment, and prognosis.

48

Finance /Accounting

In addition to accurate financial reporting, we need directors who have strong knowledge, experience, and a track record ofachievements in the finance and accounting fields to formulate and promote a financial and capital strategy that balances
ensuring a stable financial base and improving capital efficiency, and achieves appropriate shareholder returns.

Legal / Risk
management

The establishment of an appropriate governance system is the foundation for sustainable corporate value improvement. To
promote a compliance system that ensures thorough compliance with laws and corporate ethics, we need directors who havestrong knowledge, experience, and a track record of achievements in legal and risk management.

Sustainability /ESG

The Group is committed to sustainable management, aiming to enhance corporate value not only by maximizing our economic
value but also by increasing our social value. To achieve this, we need directors who have strong knowledge, experience, and a
track record of achievements in the sustainability and ESG fields.

ASKA HD REPORT 2023

Meeting body attended and attendance status2
Responsibilities in the Company andimportant concurrent positions

Board ofDirectors

Responsible for the entire Group management
Member of the Board of Directors, Representative Director,
Chairman of the Board of ASKA Pharmaceutical Co., Ltd.

100%
(16/16)

Member of the Board of Directors, Vice Chairman of the Board of
ASKA Pharmaceutical Co., Ltd.

(15/16)

Audit &
Supervisory
Board

Group
Nomination
CommitteeGroup
Remuneration
Committee

100%
(1/1)

100%
(1/1)

94%

ESG
Committee

100%
(2/2)

Group
Compliance
Promotion
Committee

100%
(1/1)

President, Member of the Board of Directors, Representative Director of
ASKA Pharmaceutical Co., Ltd.

100%

Member of the Board of Directors, Executive Corporate Officer, Division Director of
Quality & Safety Assurance Division of ASKA Pharmaceutical Co., Ltd.

100%

President, Member of the Board of Directors, Representative Director of
ASKA Animal Health Co., Ltd.

100%

100%

(11/11)

(2/2)

100%
(1/1)

Representative Director of YOSHIMURA BIOETHIC INSTITUTE
Outside Board Member (Audit & Supervisory Committee Member) of Pan PacificInternational Holdings Corporation
Professor Emeritus of Keio University
Vice President of Fukushima Medical University

100%
(1/1)

(16/16)

100%
(1/1)

50%
(1/2)

100%
(1/1)

(11/11)

100%(16/16)

100%
(1/1)

100%
(1/1)

Senior Vice President of Takenaka Partners Corp.

—3

—

—

—

—

—

CEO of So-En Corporation

—3

—

—

—

—

—

100%
(1/1)

100%
(1/1)

100%
(1/1)

100%
(1/1)

Audit & Supervisory Board Member of ASKA Animal Health Co., Ltd.

Audit & Supervisory Board Member of ASKA Pharmaceutical Co., Ltd.

Representative Partner of TK Pharma Partners LLC.
Representative of Fukuchi Keiko Tax Accountant OfficeOutside Director (Audit and Supervisory Committee Member)of KAWADA TECHNOLOGIES, INC.
Outside Auditor of KAWADA INDUSTRIES, INC.

100%
(16/16)100%

100%(19/19)100%(16/16)(19/19)

100%

100%

(16/16)(19/19)

100%

100%

(16/16)(19/19)Compensation for Board Members P olicies on Determining the Details of Compensation,etc. for Each Individual Member of the Board of Directors
The Group Remuneration Committee deliberates on the
remuneration for members of the Board of Directors while
ensuring transparency, fairness, and objectivity. Design ofthe remuneration system and the specific amount of
remuneration are determined by the Board of Directors.
Remuneration for members of the Board of Directors
excluding Outside Directors of the Board of Directors, shallbe designed to contribute to continued increases in corporate
value. Specifically, it shall consist of base salary as well as aperformance-based bonus serving as short-term incentive, anda share compensation system serving as medium- to long-term
incentive. In order to ensure supervision of management that isfully functional from an independent stance, remuneration for
Outside Directors shall consist of base salary only, without
short-term or medium- to long-term incentive.
Base salary
Basic remuneration for members of the Board of Directors
shall be an annual base salary. Its amount shall be
determined based on position (rank), responsibilities, andterm of office. It shall be paid on a monthly basis.

Performance-based bonus
Performance-based bonus for members of the Board of
Directors (excluding Outside Directors) shall be paid at a
certain time each year. The amount of bonus to be paid tomembers of the Board of Directors with special titles shallbe determined by multiplying the annual base salary by abonus calculation coefficient defined for each position (rank)
and a payment coefficient based on the Company’s businessperformance (operating profit, etc.) for the previous fiscal
year. For members of the Board of Directors who also serve
as employees of the Company, the incentive provided shallbe calculated by incorporating the performance-based
bonus into the bonuses provided to them as employees.
Restricted share compensation
For the purpose of providing incentives to sustainably
increase the Company’s corporate value, as well as for the
purpose of further promoting value sharing with theshareholders, restricted shares shall be granted at a certain
time each year within the scope of the maximum amountand maximum number of shares approved at the General
Meeting of Shareholders. The number of restricted shares tobe granted to individual members of the Board of Directors
shall be determined in consideration of their position (rank),
responsibilities, term of office, and other factors.
ASKA HD REPORT 2023

49

Foundation for Value Creation

 olicy on Determining the Proportion of Each TypeP
of Remuneration, etc.
Based on the belief that it is important for management towork with a medium- to long-term perspective, the proportionof base salary, performance-based bonus, and restricted sharecompensation shall be configured with emphasis on the level andstability of basic remuneration (base salary) with additional
consideration of improvement in single-year business performanceand the pursuit of shareholder interests.

The proportion of each type of remuneration for members of
the Board of Directors (excluding Outside Directors) is not fixed
because the amount of remuneration is determined according tobusiness performance in each fiscal year. However, the proportionof base salary, performance-based bonus, and restricted sharecompensation fits roughly in the following scope:
Base salary: 55-70%, Performance-based bonus: 15-30%,
Restricted share compensation: 10-15%

 otal Amount of Compensation, etc. by Board Member Classification, Total Amount by Type of Compensation, etc.,Tand the Number of Target Board Members in FY2022
Classification

Total amount ofcompensation, etc.
(Millions of yen)

Members of the Boardof Directors(Outside Directors)

Total amount by type of compensation, etc. (Millions of yen)
Base salary

Performance- (Persons)based bonus

Restricted sharecompensation

Number of target
Board Members(Persons)

30
(30)

30
(30)

—
(—)

—
(—)

3
(3)

Audit & Supervisory
Board Members(Outside Audit &Supervisory
Board Members)

50
(13)

50
(13)

—
(—)

—
(—)

4
(2)

Total (Outside
Board Members)

81
(44)

81
(44)

—
(—)

—
(—)

7
(5)

Notes:
1. T he amount of compensation or the like for members of the Board of Directors does not include the portion of employees’ salary paid to members of the Board of Directors who also serve as
employees of the Company.
2. T he number of target Board Members is the number of Board Members paid remuneration by the Company. In addition to the above, the total amount of compensation, etc. received by fivemembers of the Board of Directors of the Company from Group companies (ASKA Pharmaceutical Co., Ltd. and ASKA Animal Health Co., Ltd.) was ¥282 million.
3. T he performance index for performance-based remuneration, etc. is operating profit, which was ¥5,108 million for FY2022. This index was chosen because it is an important indicator ofachievement of management goals. Therefore, it was determined to be an appropriate index for performance-based remuneration.
4. N
 on-monetary remuneration, etc. is in the form of Company shares.
5. B ased on the resolution of the Extraordinary General Meeting of Shareholders held on June 24, 2021, the upper limit on compensation for members of the Board of Directors was set at ¥500
million per year (including ¥70 million for Outside Directors and excluding the portion of employee salary paid to members of the Board of Directors who also serve as employees of the Company).
The number of members of the Board of Directors at the end of the Extraordinary General Meeting of Shareholders was six (including three Outside Directors). Separate from this compensation,
the upper limit on restricted share compensation was set at ¥100 million per year based on the resolution of the Extraordinary General Meeting of Shareholders held on June 24, 2021. The numberof members of the Board of Directors at the end of the Extraordinary General Meeting of Shareholders was three (excluding Outside Directors).
6. B ased on the resolution of the Extraordinary General Meeting of Shareholders held on June 24, 2021, the upper limit on compensation for Audit & Supervisory Board members was set at ¥150
million per year. The number of Audit & Supervisory Board members at the end of the Extraordinary General Meeting of Shareholders was four.

Compliance 
Basic Principles
We have established a department to promote and supportcompliance within each Group company and developed thenecessary internal systems, and rules and regulations. The
structure we have created facilitates the prompt handling ofcases, the formulation of measures to prevent violations andother measures. This means that Board Members and employees
can engage in corporate activities with peace of mind.
To increase awareness of compliance of employees of theGroup, we are conducting compliance education for each job
level while working to grasp the level of employee awarenessthrough questionnaire surveys and to identify points for
improvement. In FY2022, we worked to further ensurecompliance by conducting training and problem solving basedon actual situations upon our understanding of the current
situation and by identifying problems from the results of thecompliance awareness survey. The Group Compliance Promotion
Committee has been established to supervise the Group’s efforts
toward recognizing and responding to risks that could have asignificant impact on Group management and promoting acompliance system that thoroughly complies with laws andcorporate ethics.

50

ASKA HD REPORT 2023

• Group Compliance Promotion StructureGroup Compliance Manager

Representative director orsenior member of theBoard of Directors

Group Compliance
Promotion Officer

Members of the Board of Directors(Corporate Officers) who have been
appointed within each company,
reporting to the Group
Compliance Manager

Whistle-blower System
As a system to reflect the voices of employees in compliancepractice, we have established a whistle-blower office (the ASKA
Pharmaceutical Holdings’ compliance consulting desk), andhave promoted awareness of the desk through education andtraining programs.
In addition to the existing internal and external contact points,
we also established a new contact point staffed by ASKA
Pharmaceutical Holdings’ Audit & Supervisory Board members(Audit & Supervisory Board member consulting desk) for
consultation and reporting of compliance-related matters
involving Board Members of the Group, in connection with theenforcement of the revised Whistleblower Protection Act onJune 1, 2022. This contact point, which is independent fromsenior management, is intended to lower the psychologicalhurdle for Board Members and employees for consultation andreporting of compliance-related matters involving senior
management, and to ensure that investigations and corrective
measures are carried out in a timely and appropriate manner.
Reporting can be also done anonymously, and all cases arehandled appropriately. In addition, we have enhanced thewhistle-blower system by securing two people to be in chargeof the external contact point (corporate lawyer’s office).
In accordance with the spirit of the Whistleblower Protection
Act, we operate this system to protect whistle-blowers as wellas to ensure that compliance-related matters are reported,
investigated, and corrected in a timely and appropriate manner.

• ASKA Pharmaceutical Holdings
Structure of the Compliance Consulting DesksGroup Compliance Promotion Committee(Chairman = Group Compliance Manager)

External
consulting deskInternal
consulting desk

Attorneys

Legal Affairs &Regulatory ComplianceDepartment(Group Compliance
Secretariat)

Audit & Supervisory
Board member
consulting desk*
Audit & Supervisory
Board members of
ASKA Pharmaceutical
Holdings

Whistle-blower*C ontact point for consultation and reporting of compliance-related matters involving
Board Members of the Group

Code of Practice
As a responsible life-related company that handles pharmaceuticals,
ASKA Pharmaceutical recognizes the need to ensure a high levelof ethics and transparency in its corporate activities. Based on
this recognition, in FY2013 we established the ASKA Pharmaceutical
Code of Practice as a code of conduct for all Board Members
and employees and their interactions with researchers, medical
professionals, patient groups, etc., and we are implementing
corporate activities that can be understood by society by ensuringthat all Board Members and employees are fully aware of
the code.

Intellectual Property
Intellectual property rights include patent rights, utility modelrights, design rights, and trademark rights, which protect
creations through intellectual creative activities. We respect therights of third parties and cooperate with relevant departments
to formalize and protect intellectual property rights throughout
the Company. In addition to protecting rights related to newly

developed products, we maximize value by utilizing intellectual
property rights to extend the lifecycle of existing products,
including new dosage formulations.
Moreover, we are promoting the globalization of ourintellectual property activities, and have established a systemthat enables us to collect and utilize intellectual property
information overseas, and are working to strengthen cooperation
with our partner companies in terms of intellectual property.
With the growing importance of intellectual property, we willfurther contribute to our business growth through these efforts.

Initiatives of the Group in Industry-related Norms(Transparency Guidelines, Guidelines for Sales
Information Provision Activities, etc.)
With the recognition that ASKA’s corporate activities related toprescription pharmaceuticals are conducted under the public
medical insurance system, we are fulfilling our accountability tosociety by ensuring transparency in the provision of funds to
medical professionals, medical institutions, patient groups, andothers. In accordance with the Transparency Guideline for theRelationship between Corporate Activities and Medical
Institutions and the Transparency Guideline for the Relationshipbetween Corporate Activities and Patient Groups, in FY2023 wewill continue with disclosure of information on FY2022’s
provision of funds to medical professionals, medical institutions,and patient organizations.
In addition, the Guidelines for Provision of Sales Information
on Prescription Drugs (the “Guidelines”) were established by
the Ministry of Health, Labour and Welfare to promote theproper use of prescription pharmaceuticals. They are aimed atpreventing inappropriate promotional activities (such asrecommending off-label use, slandering other companies, andproviding misleading information on efficacy and safety). In
addition, from 2019 the Guidelines made it the responsibility ofmanagement to establish the internal systems necessary for
appropriate sales information provision activities and to educate
employees. In FY2022, the department supervising sales
information provision activities, as the lead department,
reviewed materials used by medical representatives (MRs) toensure that they are properly prepared, and also checked thepromotional activities of MRs and others, and with regard to the
behaviors that could have been taken as a violation of the
Guidelines, the information was shared with the parties
concerned as well as the relevant promotion department toraise awareness and prevent violations. In addition, we
continuously remind MRs and others of the importance ofcompliance with the Guidelines and other industry-related
norms during training sessions.
As a life-related company, we will continue to work to further
improve our ethics, transparency, and credibility while conducting
activities to deepen the understanding of medical institutions
and medical professionals.

Risk Management 
Basic Policy
In order to deal with risks that may affect the business activitiesof the Group, we have established the Group Business Risk
Management Rules and are implementing a risk management
system with classifications based on characteristics and risks.
Each department prepares and operates procedure manuals andsystematically works to resolve issues through annual risk
assessments and the formulation, implementation, and evaluationof countermeasures based on the results of those assessments.

Business Continuity Plan (BCP)
In order to ensure a stable supply of pharmaceuticals and otherproducts, we have formulated two types of BCP, one for natural
disasters such as large-scale earthquakes and tsunamis, and theother for the spread of infectious diseases such as the novel
influenza, and are working to establish a system that will enable
us to quickly restore our business activities. Going forward, we
will continue to enhance our preparedness for anticipated risks,
conduct employee awareness activities, and further improve ourcrisis management system.
ASKA HD REPORT 2023

51

Foundation for Value Creation

Board Members and Corporate Officers (As of June 28, 2023)

7

9

12

52

3

6

President, Member of the Board of
Directors, Representative Director

Senior Managing Member of the Board of
Directors, Representative Director

Senior Managing Member of the Board of
Directors, Representative Director

Takashi Yamaguchi

Atsushi Maruo 2

Sohta Yamaguchi 3

Apr. 1978	Joined Teikoku Hormone Mfg. Co., Ltd. (currently
ASKA Pharmaceutical Co., Ltd.)
Jun. 1991	President, Member of the Board of Directors,
Representative Director of Teikoku Hormone Mfg.
Co., Ltd.
Apr. 2021	President, Member of the Board of Directors,
Representative Director of the Company(to Present)
Jun. 2021	Member of the Board of Directors, Representative
Director, Chairman of the Board of ASKA
Pharmaceutical Co., Ltd. (to Present)

Apr. 1981	Joined The Mitsubishi Bank, Ltd.
(currently MUFG Bank, Ltd.)
Apr. 2009	Tohoku Region Manager and Sendai BranchManager of The Mitsubishi Bank, Ltd.
Oct. 2010	Corporate Officer of ASKA Pharmaceutical Co., Ltd.
Jun. 2021	Member of the Board of Directors, Vice Chairmanof the Board of ASKA Pharmaceutical Co., Ltd.
(to Present)
Apr. 2023	Senior Managing Member of the Board of
Directors, Representative Director of the Company,
In charge of Sustainability (to Present)

Apr. 2008	Joined Hitachi, Ltd.
May 2011	Registered as a patent attorney
Feb. 2016	Joined ASKA Pharmaceutical Co., Ltd.
Jun. 2021	Senior Managing Member of the Board of
Directors, Representative Director of the Company(to Present)
President, Member of the Board of Directors,
Representative Director of ASKA PharmaceuticalCo., Ltd. (to Present)

Member of the Board of Directors,
Executive Corporate Officer

Member of the Board of Directors,
Executive Corporate Officer

Maiko Mori 4

Fumiyoshi Yamaguchi 5

Apr. 1987	Joined Teikoku Hormone Mfg. Co., Ltd. (currently
ASKA Pharmaceutical Co., Ltd.)
Apr. 2020	Division Director of Quality & Safety Assurance
Division of ASKA Pharmaceutical Co., Ltd.
Jun. 2022	Member of the Board of Directors, Executive
Corporate Officer, Division Director of Quality &Safety Assurance Division of ASKA PharmaceuticalCo., Ltd. (to Present)
Member of the Board of Directors, Executive
Corporate Officer of the Company (to Present)

Jul. 2011	Joined ASKA Pharmaceutical Co., Ltd.
Jun. 2020	Corporate Officer of ASKA Pharmaceutical Co., Ltd.
Member of the Board of Directors of ASKA Animal
Health Co., Ltd.
Jan. 2021	President, Member of the Board of Directors,
Representative Director of ASKA Animal HealthCo., Ltd. (to Present)
Jun. 2022	Member of the Board of Directors, Executive
Corporate Officer of the Company (to Present)

Member of the Board of Directors(Outside Director)

Member of the Board of Directors(Outside Director)

Member of the Board of Directors(Outside Director)

Yasunori Yoshimura 6

Minoru Awabayashi 7

Yasuji Enokido 8

Apr. 2007	Chairperson of Japan Society of Obstetrics
and Gynecology
Oct. 2012	Representative Director of YOSHIMURA BIOETHIC
INSTITUTE (to Present)
Apr. 2014	Professor Emeritus of Keio University (to Present)
Apr. 2021	Member of the Board of Directors, Outside
Director of the Company (to Present)

Jul. 1983	Established Pacific Marketing Partners, Inc.,
Managing Director
Apr. 2005	Representative Director of Nihon Omniglow, K.K.
Apr. 2016	Senior Vice President of Takenaka Partners Corp.
Jun. 2023	Member of the Board of Directors, Outside
Director of the Company (to Present)

Apr. 2013	Officer of Panasonic Corporation
Apr. 2015	Managing Officer of Panasonic Corporation
President of AVC Networks Company
Apr. 2016	Representative Director, Senior Managing Directorof Panasonic Corporation
Nov. 2017	CEO of So-En Corporation (to Present)
Jun. 2023	Member of the Board of Directors, Outside
Director of the Company (to Present)

ASKA HD REPORT 2023

1

1

10

11

8

4

5

2

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Ikuo Kumano 9

Yuichiro Fukui 10

Apr. 1982	Joined Teikoku Hormone Mfg. Co., Ltd. (currently
ASKA Pharmaceutical Co., Ltd.)
Jun. 2018	Member of the Board of Directors, Executive
Corporate Officer, In charge of Production,
Division Director of Administrative Division of
ASKA Pharmaceutical Co., Ltd.
Jun. 2021	Audit & Supervisory Board Member of theCompany (to Present)
Audit & Supervisory Board Member of ASKA
Animal Health Co., Ltd. (to Present)

Apr. 1984	Joined Takeda Pharmaceutical Company Limited
Apr. 2009	Director of Eastern Japan Sales Unit ofPharmaceutical Marketing Division of Takeda
Pharmaceutical Company Limited
Jun. 2015	Executive Corporate Officer of ASKA
Pharmaceutical Co., Ltd.
Jun. 2021	Audit & Supervisory Board Member of theCompany (to Present)
Audit & Supervisory Board Member of ASKA
Pharmaceutical Co., Ltd. (to Present)

Corporate Officers
Kiyohiko Tamura
Executive Corporate Officer
Division Director, Group Business
Management Division

Kunihiro Gunji
Corporate Officer
Outside Audit & Supervisory Board Member

Outside Audit & Supervisory Board Member

Takao Kimura 11

Keiko Fukuchi 12

Jul. 2000	President and Representative Director of Nycomed
Amersham PLC
Apr. 2010	Executive Officer, Supervising Manager of Business
Development Division in Asia-Pacific Region of
sanofi-aventis K.K. (currently Sanofi K.K.)
Feb. 2016	Representative Partner of TK Pharma Partners LLC.
(to Present)
Apr. 2021	Outside Audit & Supervisory Board Member of theCompany (to Present)

Jul. 2013	Director (Mutual Agreement Procedures),International Operations Division, Commissioner’s
Secretariat of National Tax Agency
Mar. 2018	Regional Commissioner of Kanazawa Regional
Taxation Bureau
Aug. 2019	Registered as a tax accountant. Representative of
Fukuchi Keiko Tax Accountant Office (to Present)
Apr. 2021	Outside Audit & Supervisory Board Member of theCompany (to Present)

In charge of Audit and Legal Affairs &Regulatory Compliance

Junichi Saito
Corporate Officer
President, Member of the Board of
Directors, Representative Director of
ASKA Pharma Medical Co., Ltd.

For details, please visit our website.
https://www.aska-pharma-hd.co.jp/english/company/official.html
ASKA HD REPORT 2023

53

Foundation for Value Creation

Environment
Basic Principles 
3. We will strive to continuously reduce the environmental
impact from research, development, production, sales andother business activities.
4. We will conduct environmentally friendly facility planningand technology and product development.
5. We will strive to improve environmental communication asa corporate citizen.
6. We will strive to educate employees and raise theirawareness about the environment.

The Group considers initiatives to deal with environmental
problems to be its natural mission in line with its corporate
philosophy, as a corporate entity that contributes to society
and earns its trust. Our environmental policies are based onprotecting the environment and continuously reducing theenvironmental impact of all our business activities.
1. We will establish an environmental management structure.
2. We will comply with environmental laws and regulations
and other requirements.

Environmental Management Structure To effectively practice environmental management,
ASKA Pharmaceutical also regularly holds theCompany-wide Environmental Management
Meeting. Discussion at FY2023 meeting covered
the FY2022 results under the medium-term
environmental plan and the goals for FY2023. We
believe that information sharing and exchange of
opinions among the attendees help to promote
environmental measures throughout the Company.

•C ompany-wide Environmental Management Structure
President
ASKA Pharmaceutical Holdings

Board Member in
Charge of
Sustainability

Management Council

ESG Committee
ESG
Promotion Meeting

Sustainability Promotion
Promotion Managers
Section, Corporate
Committee
Planning Department

Environmental Management Supervisor(Administrative Division Director)

Corporate Planning
Department (CSR)

General Affairs
Department (Secretariat)

Company-wide Environmental
Management Meeting

Office Environmental Management Supervisor
Iwaki Factory

Shonan ResearchCenterHead Office/
Sales(AsJulyof 1,
July1, 2023)(As of
2023)

Working toward a Carbon-Neutral Society 
The Group considers climate change to be one of the mostimportant issues for global environmental conservation, andis working to reduce its greenhouse gas emissions. ASKA
Pharmaceutical is promoting the deployment of eco-friendly
commercial vehicles and is using hybrid vehicles in all cases
except for 4WD vehicles in cold regions. We renovated ourhead office building to promote the efficient use of spaceand paperless operations. The Shonan Research Center uses
100% renewable energy-derived, non-FIT, non-fossil certificate
electricity for the electricity it purchases. It also has highefficiency in-house power generation equipment onsite anda solar power-derived energy supply. At the Iwaki Factory, we
have worked to improve the operational efficiency of thecogeneration (combined heat and power) system and the
manufacturing process. Future initiatives include plans topurchase CO2-free electricity and introduce solar power
generation under the PPA1 method. In FY2022, ASKA
Pharmaceutical’s company-wide energy consumption was
equivalent to 6,128 kl of crude oil, and CO2 emissions were
10,780 t-CO2. With respect to our medium-term target of a
46% reduction in CO2 emissions by FY2030 compared to
FY2013, we have achieved a 39% reduction so far.

•C
 O2 Emissions Volume(t-CO2)18,000

Solar power generation2

Solar power generation2

Solar power generation2

Solar power generation2

91,000kWh

81,000kWh102,000kWh

101,000kWh

17,72615,00027%
Reduction
12,95325%
Reduction
13,21512,00031%
Reduction
12,251

39%
Reduction
10,780

9,000

0

2013

2019

2020

2021

2022

(FY)

1.	PPA: Power Purchase Agreement	A system that enables companies that own and manage solar power generationequipment (the PPA provider) to install that equipment at sites or roofs provided byfacility owners, and those owners (electricity users) purchase the power generated
by the solar power generation equipment at a discount.
2. ASKA Pharmaceutical Iwaki Factory

Switching to CO2-Free Electricity 
As mentioned above, as part of the Group’s effort to reducegreenhouse gas emissions, we have set a specific target of
reducing CO2 emissions by 46% by FY2030 compared to
FY2013, with the aim of having the Group become carbonneutral by 2050. As one of the measures to achieve this goal,
we introduced CO2-free electricity at the Iwaki Factory in
April 2023 to make up a portion of its power supply. The
facilities account for about 80% of our energy consumption.
We expect this move to reduce the Company’s annual CO2

54

ASKA HD REPORT 2023

emissions by approximately 530 tons. The switch will be madein stages, accounting for a total reduction of approximately
2,200 tons of CO2 emissions. In addition, from the viewpointof cost reduction, we have decided to install a solar power
generation system (under the PPA1 method), which we expect
will reduce CO2 emissions by approximately 440 tons per
year. Construction has begun and preparations are underway
to begin supplying electricity in the spring of 2024.

Disclosures Based on TCFD Recommendations
The Group considers the issue of climate change to be a
management issue that affects its business, and iscommitted to climate change measures. From thisperspective, we have been disclosing climate changerelated information since June 2022 in line with the Task
Force on Climate-related Financial Disclosures (TCFD)
recommendations established by the Financial Stability

Transition Risks

Board (FSB) in 2022 at the request of the G20. Throughthe implementation of scenario analysis and identificationof risks and opportunities based on the TCFD framework,
the Group is developing measures to address the risks
and opportunities associated with climate change and is
working to improve the resilience of its business in theface of climate change.

Policies

Risk of unexpected pandemics due to climate change, as well as drug price reductions that exceed
expectations due to the financial pressures on the healthcare system caused by an aging society witha declining birthrate

MarketRisk that climate change will cause a rise in raw material prices, which will lead to a rise in the cost ofliving for patients, thereby discouraging them from seeing a doctor

Reputation Increase of stakeholder concerns due to delays in climate change action
Physical Risks

Chronic

Risk of increase in operating expenses, such as increase in manufacturing costs due to climate change

Acute

Risk of supply chain disruptions due to disasters caused by extreme weather events∙ Strengthening competitiveness against climate change-related increases in disease and changes in consumer
Opportunities

preferences leads to greater demand for products∙ Proactive initiatives to address climate change risks, enhance operational sustainability and stakeholder
evaluation, leading to opportunities for share price appreciation

Note: Items other than strategy can be seen on our website.									https://www.aska-pharma-hd.co.jp/english/csr/tcfd.html

Establishment of a Recycling-oriented Society As part of our efforts to build a recycling-oriented society
aimed at more efficient resource use, minimizing waste asmuch as possible is an important issue for maintaining business
continuity. We have set the reduction of waste as a target inour medium-term environmental plan and are actively working
on resource saving and waste reduction measures. Of the 193
tons of waste generated by ASKA Pharmaceutical’s factory andresearch center in FY2022, 111 tons were ultimately recycled,
which is 58% of the total amount of waste generated. In
addition, 70 tons were consigned to final disposal, or 36% of
the total amount of waste generated.

Total Waste/Amount Recycled/Amount for Final
Disposal/Recycling Rate (Factory and Research Center)
FY2020

FY2021

FY2022

Total waste (t)

144

174

193

Amount recycled (t)

94

101

111

Amount for final disposal (t)

43

65

70

Recycling rate (%)

66

58

58

FY2021: W aste volume increased mainly due to the digitization of package inserts,
partial discontinuation of manufacturing processes, and product recalls.

Management of Air and Water Resources Management of Chemical Substances 

To prevent air pollution, the Group is working to reduce
emissions of hazardous substances. We measure and report
the concentrations of NOx, SOx, soot and dust at our businesslocations twice a year, and all of these concentrations are
below the standard values. In addition, water resources used
at our business locations are discharged into rivers and sewers
after appropriate treatment and water quality control inaccordance with regulations. At the ASKA Pharmaceutical
Iwaki Factory, we conduct daily water quality monitoring,
weekly water quality analysis, reporting to the Iwaki City
Environmental Monitoring Center, and on-site inspection(once a year), all of which meet the standard values. We willcontinue to strive to reduce emissions of hazardous substances
through appropriate management of air and water resources.

The Group handles a wide variety of chemical substances
and is committed to thorough management of thesesubstances, which includes their safe use and storage. We
have also established a system for the proper managementof chemical substances at each of our business locations,and review the rules and regulations for this system asnecessary. We will continue to reduce emissions and transfersof chemical substances subject to the Pollutant Release andTransfer Register (PRTR)* system and promote appropriate
management of chemical substances by considering the useof alternative, safer chemical substances.
*A system for collecting and disseminating information about releases and transfers ofchemical substances

Biodiversity 
The Group recognizes that the environmental impact associatedwith our business activities affects biodiversity. We strive to
reduce this impact in various ways, including through resource
conservation and climate change countermeasures, in orderto maintain and conserve biodiversity.

We will also develop our veterinary pharmaceuticals andanimal feed additives businesses so that we can contributeto the creation of a society where people and animals cancoexist in harmony.
ASKA HD REPORT 2023

55

Data Section

11-Year Summary of Consolidated Financial Results

FY2022

FY2021

FY2020FY201960,461
31,87623,476
5,108
5,232
4,238
4,227
1,256

56,60730,25521,556
4,795
4,880
4,290
3,598
657

55,181
29,79821,773
3,609
3,092
2,713
4,709
765

52,542
28,52522,509
1,507
1,715
649
4,913
2,040

3,127

2,885

3,305

3,669

87,13854,533
12,623

83,29748,892
14,046

82,58244,51016,39580,23941,573
16,4193,351(1,126)(1,820)17,5052,842
6,743(2,996)
17,1036,541(2,866)(455)
10,514(492)(2,927)
(392)
7,294

150.08
1,928.14
16

151.22
1,734.80
15

95.72
1,568.89
14

22.96
1,467.58
172

52.7
38.8
8.4
62.6
8.2
6.1
10.7

53.4
38.1
8.5
58.7
8.8
5.9
5.31

54.0
39.5
6.5
53.9
6.3
3.8
14.6

54.3
42.8
2.9
51.8
1.5
2.1
74.0

747
30,563

777
30,563800
30,563807
30,563

Consolidated Financial Results (Millions of yen)
Net sales
Cost of sales
Selling, general and administrative expenses
Operating profit
Ordinary profit
Profit attributable to owners of parent
R&D expenses
Capital expenditures(Property, plant and equipment and software(transfer basis))
Depreciation
Consolidated Financial Position (Millions of yen)
Total assets
Net assets
Interest-bearing debt
Consolidated Cash Flows (Millions of yen)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents at end of period
Per-share Data (Yen)
Earnings per share
Net assets per share
Dividends per share
Financial Ratios (%)
Cost of sales ratio
Selling, general and administrative expenses ratio
Operating profit margin
Equity ratio
Profit attributable to owners of parent / Equity (ROE)
Ordinary profit / Total assets (ROA)
Dividend payout ratio
Non-financial Information
Number of employees
Number of issued shares (Thousands)

Notes:
Figures up to FY2020 are the figures announced by ASKA Pharmaceutical Co., Ltd.
1.wInterim dividends are dividends from other capital surplus and are excluded from the dividend payout ratio.
2.w100th anniversary commemorative dividend of ¥3 per share.
3.wDue to a change in presentation, Selling, general and administrative expenses for FY2015 were adjusted from ¥15,978 million to ¥15,861 million.
4.wDue to a change in presentation, Operating profit for FY2015 was adjusted from ¥1,166 million to ¥1,283 million.

56

ASKA HD REPORT 2023

FY2018

FY2017FY2016FY2015FY2014FY2013

FY2012

46,706
27,814
17,107
1,782
1,980
1,744
4,493
2,994

48,94430,05916,060
2,824
3,073
2,388
4,055
1,443

48,527
29,614
17,119
1,793
2,002
2,944
4,970
772

43,21526,072
15,8613
1,2834
1,522
701
4,174
2,279

42,90725,717
15,767
1,425
1,722
1,193
4,025
2,285

39,501
22,431
16,353
716
1,031
495
4,144
2,047

40,96323,047
16,847
1,061
1,336
1,114
4,269
937

2,491

2,324

2,447

1,969

1,709

2,355

2,353

82,19443,456
16,46866,23542,5592,950

66,126
39,511
3,700

57,47835,961
5,708

58,93336,577
1,366

51,26933,941
1,557

51,77033,3501,782

2,504(14,780)
13,036
11,10776(3,348)(1,142)
10,346

12,063(378)(2,384)
14,761(1,349)(6,776)
4,013
5,462

5,710
(1,897)
(557)
9,574

2,616
(2,301)
(574)
6,318

3,869
(1,484)
124
6,578

61.81
1,538.75
14

84.80
1,509.70
14105.391,413.51
14

25.15
1,287.76
14

42.89
1,313.20
14

17.85
1,219.32
14

40.27
1,202.59
14

59.6
36.6
3.8
52.9
4.1
2.7
22.7

61.4
32.8
5.8
64.3
5.8
4.6
16.5

61.0
35.3
3.7
59.8
7.8
3.2
13.3

60.3
36.7
3.0
62.6
1.9
2.6
55.7

59.9
36.7
3.3
62.1
3.4
3.1
32.6

56.8
41.4
1.8
66.1
1.5
2.0
78.4

56.3
41.1
2.6
64.4
3.4
2.6
34.8

842
30,563856
30,563862
30,563872
30,563862
30,563886
30,563897
30,563

ASKA HD REPORT 2023

57

Data Section

Stakeholder Communication

Stakeholders

Dialogue Engagement in FY2022• IR Meetings with analysts and institutional investors: 78 times; total of 98
participants

Shareholders and investors

Medical professionals
Veterinary medical
professionals and farmers• Financial results presentation and IR events: 3 times; total of 102 participants• Briefings for individual investors: 1 time; total of 865 participants• General Meeting of Shareholders, attendance at venue: 37 people• Lectures for medical professionals: 63 times; total of 33,895 participants* Including online participants• Seminars for veterinary medical professionals and farmers:


2 times; total of 700 participants• Provision of information on female healthcare through Mint and Mint teens+

Local community

Employees+

See page 43 for details.

• Seminars for general public (patients): 4 times; total of 740 participants• Dialogue with management: 98 times
See page 38 for details.

The Group engages with a wide range of stakeholders
including shareholders and investors, medical professionals,
veterinary medical professionals, farmers, partners, local
communities, patients and their families, and employees.

Our corporate communication activities are guided by thebasic principles of transparency, fairness, and continuity as
we work to deepen mutual understanding with stakeholders
and earn the trust of society.

Investor Relations website (For Our Shareholders and Investors)

Health Lab Mint + for Women’s health (Japanese version only)

https://www.aska-pharma-hd.co.jp/english/invest/

https://www.aska-pharma.co.jp/mint/

External Evaluation Related to ESG

FTSE Blossom Japan Index

FTSE Blossom Japan Sector
Relative Index

S&P/JPX Carbon
Efficient Index

Editorial Postscript
Thank you for reading ASKA HD Report 2023. In this report, we
focused on the distinctive material issues of ASKA Pharmaceutical
Holdings, namely contribution to women’s health andcontribution to animal health, presenting the messages andbusiness strategies of the Group’s presidents and division heads.
We also outlined the Group’s commitment to sustainablecorporate value enhancement. This report greatly expanded ourcoverage of the Group’s human resources strategy, which is the

58

ASKA HD REPORT 2023

foundation of the Group’s growth. We hope that this report hashelped you better understand the Group’s efforts. We will continue
to value opportunities for engaging with our stakeholders as we
strive to enhance our information disclosure.
Corporate Communication Section
Corporate Planning Department
ASKA Pharmaceutical Holdings

Company Information/Shareholder Information (As of March 31, 2023)
Company Information
Company name

ASKA Pharmaceutical Holdings Co., Ltd.

FoundedApril 1, 2021

Capital¥1,197.9 million

Number of employees

747 (Consolidated)

Representative

Takashi Yamaguchi
President, Member of the Board of Directors, Representative Director

Address

5-1 Shibaura 2-chome, Minato-ku, Tokyo 108-8532

Businesses	Business management of Group companies and related operations
Group Companies	ASKA Pharmaceutical Co., Ltd.
ASKA Animal Health Co., Ltd.
ASKA Pharma Medical Co., Ltd.
Equity-Method Affiliates	Ha Tay Pharmaceutical Joint Stock Company (Vietnam)
Japan Glass Industry Co., Ltd.
One other company

Shareholder Information• Status of Shares• Top 10 Shareholders
Number of shares Percentage ofheld (thousands) shares held (%)

Shares Issued

Number of Shareholders

Name of shareholder

30,563,199

8,322

The Master Trust Bank of Japan, Ltd.
(Trust Account)

2,975

10.51

Takeda Pharmaceutical
Company Limited

2,204

7.79

Zeria Pharmaceutical Co., Ltd.

1,877

6.63

Custody Bank of Japan, Ltd.
(Trust Account)

1,264

4.46

MUFG Bank, Ltd.

1,100

3.88

Takashi Yamaguchi

891

3.15

Kabushiki Kaisha YAMAGUCHI

579

2.04

Aioi Nissay Dowa Insurance Co., Ltd.

530

1.87

Nippon Life Insurance Company

522

1.84

The Toa Reinsurance Company,
Limited500

1.76• Distribution of Shares
Individuals
and other
8,078 shareholders
7,074 thousand shares(23.2%)

Treasury shares
1 shareholder
2,269 thousand shares(7.4%)
Financial
institutions
23 shareholders
8,922 thousand shares(29.2%)

Total
30,563,199
8,322

Foreign
Financialcorporations
instruments firms
124 shareholders
29 shareholders
3,990 thousand shares Other
528 thousand shares(13.1%)
corporations(1.7%)
67 shareholders
thousandshares7,778(25.5%)
Note: The total does not add up to 100% because shareholdings are rounded
down to the nearest thousand.

Notes:
1. The Company holds 2,269,161 shares as treasury shares, which are notincluded in the list of major shareholders.
2. Shareholding ratio is based on the number of shares less treasury shares(2,269,161 shares).
3. Treasury shares (2,269,161 shares) do not include 8,900 shares held by
The Master Trust Bank of Japan (Employee shareholding ESOP Trust AccountNo. 76,361).

ASKA HD REPORT 2023

59

Printed on paper made with woodfrom forest thinning. Morino
Chonai-Kai (Forest Neighborhood
Association)—supporting soundforest management.

Vegetable-based ink
was used for the
printing of this report,
in consideration of theenvironment.

This report uses FSC®
certified paper, whichcontains raw materials fromwell-managed forests.

We adopted the “waterlessprinting method,” which
reduces the amount ofwaste liquid and use ofharmful substances.

October 2023