Overview of the Mochida Pharmaceutical Group’s “08-10 Medium Term
Management Plan”
April 1, 2008
Dear All,
Every year, the Mochida Pharmaceutical Group (Mochida Pharmaceutical Co., Ltd., TSE:4534, 1st Section) establishes its rolling three-year plan. We are pleased to present an
overview of the mid-term management plan for the fiscal years 2008 through 2010.
With our focus on profits and ongoing investment for the future as our fundamental
management policy, the Group has worked hard to build further on its strong business in thefields of pharmaceuticals, healthcare products and medical devices and to develop new
businesses with the goal of achieving a unique and distinct comprehensive healthcarecompany with each of its business divisions ensuring its strong presence and competitivenessin its own field.
In order to reinforce the Group’s lean management style to keep it in step with rapid changes
in the environment for the pharmaceutical business during the coming three-year period
which starts in FY2008, we will work hard to promote further structural reform in areas
including the improvement of head office functions and the efficient management of theorganization, under the current fundamental policy that focuses on profits and ongoinginvestment and aim to further boost productivity through stronger cooperation and bonds
among group departments. We will also maximize the productivity of our finite resources,
including human resources, and actively seek collaboration with external resources at thesame time.
Furthermore, our core pharmaceutical business will focus its resources on the four major
aeres of cardiovascular, obstetrics and gynecology, dermatology and emergency medicine soas to further promote strategic alliances which stress the importance of lifecycle management
and partnerships. We will also challenge new medical fields such as the development oftreatment drugs for intractable diseases and cellular pharmaceuticals, as well as genericdrugs.
Taking full advantage of the agility and responsiveness of a mid-sized firm, the Group willcontinue to strive toward the following three key points, which remain unchanged under thenew mid-term management plan:
1.
2.
3.

Establishing businesses and specialized areas where Mochida has a competitive
advantage
Placing a high priority on partnerships
Thorough streamlining of resources

Management Target Values for 2010 (Consolidated):
Sales
Operating income
Research and development expenditures
Productivity per worker

77 billion yen
10.5 billion yen
10 billion yen
More than 44 million yen[Reference]
1. Business Strategies
1) Pharmaceuticals
The Group will seek:■To focus its resources on four major fields, in order to become a “specialty pharma”; ■To
expand our pipelines for products and products in development pipelines by maximizing thebenefits of alliances;■To build up our life cycle management to maximize values of development pipelines andcurrent products;■ To promote customer-centered marketing and business strategies.

a) Development
The Group will seek:
・To optimize organizational structuring and to allocate resource for accelerating drug
development and improving accuracy, in close cooperation with our partners;
・To accelerate the development of escitalopram (an antidepressant), treprostinil (for thetreatment for pulmonary arterial hypertension), a cellular drug using human mesenchymal
stem cells (for the treatment of GVHD) during a three-year period with the goal of securing
their marketing approval;
・To promote strategic development plan of drugs under development in light of long-termlife cycle management, such as extension of drug indications after launch;・To promote prompt extension of drug indication (actinic keratosis) to Beselna Cream (atreatment for condyloma acuminatum);・To enhance the strategies for the introduction of the products in development so as toexpand the pipeline;
・To conduct unique formulation research by ascertaining a wide range of medical needs,
including not only our products but also those of other companies.

b) Marketing
The Group will seek:
・To develop medical representatives (MRs) who can capably cover all the four targetedmajor areas. The number of the MRs will increase from 700 to 750 by FY2009;
・To focus more resources on Atelec (prolonged-action Ca-channel antagonist) so as toestablish its position as a prominent antihypertensive drug;

・Epadel (antihyperlipidemic drug) will be promoted through optimal application of theresults of JELIS (the world’s first large-scale clinical trial of a highly-purified EPA drug) withthe goal of establishing its prominence in the cardiovascular field;
・To reinforce the areas of obstetrics and gynecology and dermatology with Dinagest (forthe treatment of endometriosis) and Beselna Cream (for the treatment of external genitalwarts) which we launched in FY2007;
・To introduce multiple products in which we specialize and create efficiency in sales
activities;
・To expand the generic drug business and to aim for initial sales of 3 billion yen.
c) Pharmaceutical Research Center・To license out three new drugs, which include overseas markets, by the fiscal year 2010;
・To focus resources on “diabetes and obesity” as core fields, and “chronic pain” as asub-core field through selection and concentration processes.
2) Mochida Pharmaceutical Plant Co., Ltd.
Mochida Pharmaceutical Plant in Otawara will promote contract manufacturing business ofmedical products with high reliability and efficiency in response to diverse needs of ourcustomers, using both state-of-the-art manufacturing facilities and leading-edge technologies
that meet global standards.
3) Mochida Healthcare Co., Ltd.
Since 1970, our healthcare products business has promoted itself as an expert in basic skincare products for sensitive skin. Our success includes Skina Babe, a baby bath additive
product which enjoys the top market share, and the Collage series, a line of gentle basic skinproducts. Building upon its high rate of support and popularity among dermatologists,obstetricians and gynecologists, Mochida Healthcare will continue to further open up themarket through strengthened marketing, expanding sales of the Collage line of products, suchas the Furfur series and the Whitening series, and further establishing their brand image.

2. Promotion of restructuring and better awarenessMochida Pharmaceutical Group promotes structural improvement of the entire group andbetter awareness of all employees of the group companies so as to enhance leanmanagement that enables us to respond to the environmental changes.

a) Innovations toward independent and collaborative business units
Business units such as pharmaceuticals, the Pharmaceutical Research Center,
pharmaceutical manufacturing, healthcare products and medical devices are managed under
the self-support accounting system with an awareness of the business environment of each
unit and operational efficiency. In addition, the Group enhances the liaison among the units.
Headquarters will also seek to enhance its functions as one of the Group’s business units so
as to improve its corporate value and the efficiency in organizational operation.

b) Innovations toward boosting productivity
The Group will review its personnel allocation, strategy, and utilization, from the viewpoint ofdevelopment and vitalization of human resources, in accordance with the restructuring of theGroup's management system.
The Group will promote better awareness among employees and continue to assist them intheir efforts to develop competencies so as to enhance their performance. We will enhanceinterdepartmental cooperation in order to meet our target of increasing productivity by 10%
through operational restructuring.