The Mochida Pharmaceutical Group’s “11-13 Medium Term Management Plan”
October 3, 2011
Dear All,
Every year, the Mochida Pharmaceutical Group (Mochida Pharmaceutical Co., Ltd., TSE: 4534, 1stSection) establishes its rolling three-year plan. We are pleased to present an overview of themid-term management plan for the fiscal years 2011 through 2013. The release of the new plan has
been delayed this year due to the Great East Japan Earthquake which caused damage to thefacilities of Mochida Pharmaceutical Plant Co., Ltd.
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 the fields ofpharmaceuticals, healthcare products and medical devices and to develop new businesses with thegoal of achieving a unique and distinct comprehensive healthcare company with each of its businessdivisions ensuring its strong presence and competitiveness in its own field.
In order to respond to more difficult changes in the business environment and to ensure continued
profitable growth during the coming three years which start in FY2011, we will continue to work hardto promote further structural reform in areas including the improvement of head office functions andthe efficient management of the organization under the fundamental policy 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 the same time. Aiming, in the long term, at specialty
pharmaceuticals that will be recognized for the value of their existence also on a global scale, we are
pursuing investment in business activities that will lead to future competitiveness.
Our core pharmaceutical business will focus its resources on the targeted areas of cardiovascular
medicine, obstetrics and gynecology, dermatology, emergency medicine and psychiatry so as tofurther promote strategic alliances which stress the importance of lifecycle management andpartnerships. Furthermore, we will introduce and develop high value-added products which meet theneeds of medical professionals as well as customers. We will also challenge new medical fields suchas the development of therapeutic drugs for intractable diseases and will embrace a commitment tobiosimilar (follow-on biologics) as well as generic drugs. As a leader in the manufacture of ethyl
icosanpentate (EPA-E) preparations, we will work toward having an Epadel-based drug offered as anOTC drug.
We anticipate a difficult business environment for the next three years. We will be creating abusiness model which is unique to Mochida through challenging opportunities so as to meet theneeds of our customers.
Taking full advantage of the agility and responsiveness of a mid-sized firm, the Group will continue

to strive toward the following three key points, which remain unchanged under the new mid-term
management plan:
1.
2.
3.

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

Management Target Values for 2013 (Consolidated):
Sales

100 billion yen

Operating income

14.5 billion yen

Research and development expenditures

15.0 billion yen

Productivity per worker

More than 55 million yen[Reference]
1. Business Strategies
1) Pharmaceuticals
The Group will seek:■To focus its resources on the targeted areas (cardiovascular medicine, obstetrics andgynecology,dermatology, emergency medicine and psychiatry), in order to become a specialty
pharmaceutical company;■To expand our products and development pipelines by maximizing the benefits of alliances;■To build up our life cycle management to maximize values of development pipelines and current
products;■To promote customer-centered marketing and business strategies.
a) Development
The Group will seek:
・To optimize organizational structuring and to allocate resources for accelerating drug
development and improving accuracy, in close cooperation with our partners;
・To obtain approval for the extension of drug indication to include actinic keratosis to Beselna
Cream (a treatment for condyloma acuminatum) so as to expand its sales;
・To obtain approval for FSK0808 (a treatment for neutropenia) as the first biosimilar G-CSF(granulocyte colony stimulating factor) drug to be approved in Japan; Also, to start thedevelopment of other biosimilar products to follow G-CSF;
・To aim at submitting an application for the approval of a pulmonary arterial hypertension
treatment drug MD-0701 (treprostinil), an ulcerative colitis treatment drug MD-0901(mesalazine) and a hypertension treatment drug AJH801 (combination of cilnidipine andvalsartan) during the11-13 Medium-term Management Plan;
・To promote the addition of drug indications and dosage forms to the drugs under development
and products on the market;
・To promote the extension of drug indications to include non-alcoholic steatohepatitis to Epadel

(antihyperlipidemic drug) and uterine adenomyosis to Dinagest (a treatment for endometriosis)
during the three-year period;・To enhance the strategies for the introduction of the products in development so as to expand thepipeline in the fields in which we specialize, including internal medicine;・To conduct unique formulation research by identifying and responding to a wide range of medical
needs, including not only our products but also those of other companies;
・To introduce and develop high value-added products which meet the needs of medical
professionals as well as customers;
・To promote the self-medication business, and as a leader in the manufacture of EPA drugs, towork toward having Epadel offered as an OTC drug.
b) Marketing
The Group will seek:
・To develop medical representatives (MRs) who can capably cover all targeted areas(cardiovascular medicine, obstetrics and gynecology, dermatology, emergency medicine andpsychiatry), and to maintain and continue with the complement of 750 MRs;
・To accomplish an early expansion of sales of Lexapro (escitalopram oxalate), a newly launchedantidepressant which has already received a highly favorable review and achieved considerable
success in overseas markets;
・To further expand growing sales of Atelec (a long-acting Ca-channel antagonist) which has beenhighly successful in the extremely competitive antihypertension drug market;
・To aim at increasing the prominence of Epadel in the cardiovascular area through the maximum
utilization of the abundant EBM-information obtained from JELIS (the world’s first large-scaleclinical trial of a highly purified EPA drug) as well as any new EBM-information;
・To reinforce the areas of obstetrics and gynecology and dermatology with Dinagest and Beselna
Cream which have been reputed to be products offering new treatment options for medical
professionals and contribute to QOL of their patients;
・To introduce products in which we specialize and create efficiency in sales activities;
・To aim at sales of more than 6 billion yen for our generic drug business.
c) Pharmaceutical Research Center・To aim at licensing out three candidate drugs for development by fiscal 2013, through thediscovery of drugs that measure up to global standards.
・To focus resources on two fields of “chronic pain” and “diabetes and obesity” through Selection
and focusing process.
2) Mochida Pharmaceutical Plant Co., Ltd.
Mochida Pharmaceutical Plant in Otawara will promote contract manufacturing business of medical
products with high reliability and efficiency in response to diverse needs of our customers, using bothstate-of-the-art manufacturing facilities and leading-edge technologies that meet global standards.
Our manufacturing facilities sustained damage in the Great East Japan Earthquake and theiroperation had to be temporarily suspended. We are, however, pleased to inform you that we haveresumed full operation since the end of June. We will draw on what we have learned from thedisastrous earthquake to strengthen our commitment to maintain a stable supply of our products.
3) Mochida Healthcare Co., Ltd.
Since 1970, our healthcare products business has promoted itself as an expert in basic skin careproducts for sensitive skin. Our success includes Skina Babe, a baby bath oil which enjoys the top
market share, and the Collage series, a line of gentle basic skin products. Building upon its high rateof support and popularity among dermatologists, obstetricians and gynecologists, Mochida
Healthcare will seek to expand sales of the Collage line of products, such as the Furfur series andthe Whitening series and consolidate their brand image through strengthened marketing, and tofurther develop our market.
2. Promotion of restructuring and better awarenessMochida Pharmaceutical Group promotes structural improvement of the entire group and betterawareness by all employees of the group companies so as to enhance lean management style inorder to respond to more difficult changes in the business environment and to ensure continued
profitable growth.
a) Innovations toward independent and collaborative business units
Business units such as pharmaceuticals, the Pharmaceutical Research Center, pharmaceuticalmanufacturing and healthcare products are managed under the self-support accounting system with
an awareness of the business environment of each unit and operational efficiency. In addition, theGroup 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 inorganizational operation.
b) Innovations toward boosting productivity
The Group will continue to review its personnel allocation, strategy, and utilization, from theviewpoint of development and vitalization of human resources, in accordance with the restructuringof the Group’s management system.
The Group will promote better awareness among employees and continue to assist them in theirefforts to develop competencies so as to enhance their performance. We will enhanceinterdepartmental cooperation in order to meet our target of increasing productivity by 10% throughoperational restructuring.