Mochida Pharmaceutical Group

Integrated Report2023

By meeting medical and healthcare needs,
we aim to make an even greater contribution
to the improvement of human health.
There are definitely things that we can do for patients.
We will continue developing innovative medicines by grasping medical and healthcare needs.

Motto

Farsighted, Innovative Research
Corporate Philosophy

Actively contributing to human health and well-being in the field of medicine,
totally committed to the development of innovative products.

01

Mochida Pharmaceutical Group Integrated Report 2023

CONTENTS
1 Value Creation Story

6 Corporate Information

03 Basic Management Policies

49 10-Year Consolidated Financial Summary

03 Long-term Vision/Vision for 2031

51 Consolidated Financial Statements

05 Medium-term Management Plan

55 Corporate Data (As of June 29, 2023)

06 Code of Conduct

56 Share Information (As of March 31, 2023)

07 Corporate development

57 Our History

09 Value Creation Process
11 Materiality
13 Financial and Non-Financial Highlights
15 Interview with the President

2 Business Activities
19 Pharmaceutical business
19 Research & Development and Licensing Activities
22 Production
23 Quality Control and Safety Management
23 Sales and Information Provision Activities

27 Biomaterials Business28 Healthcare Business
28 Main activities
29 Major Skin Care Product lines

3 Governance
31 Basic Policy on Corporate Governance
32 Corporate Governance Structure
35 Officers
37 Officers’ Compensation
38 Business Risks
39 Compliance

4 Society40 Development and Use of Human Resources
41 Aiming to be a great place to work

Editorial Policy To increase understanding of the MochidaPharmaceutical Group among all stakeholders, we havecompiled this integrated report that includes non-financial
information, such as our value creation story, businessactivities and ESG information, and financial information.
When preparing this report, we referred to the Integrated
Reporting Framework advocated by the IFRS Foundation.
Organizations covered Mochida Pharmaceutical Group(Mochida Pharmaceutical Co., Ltd. and its consolidated
subsidiaries)
Period covered Centered on activities from April 1, 2022
through March 31, 2023, but also refers to more recent
news
Published

September 2023

Cautionary Note This integrated report contains statementsthat constitute forward-looking statements. Thesestatements are based on management’s current
assumptions and beliefs in light of the information currently
available to it and involve known and unknown risks anduncertainties.
Actual results may differ materially from those in theforward-looking statements as a result of various factors.
Information about pharmaceutical products (including
products currently in development) which is included inthis integrated report is not intended to constitute anadvertisement or medical advice.
This material is an English translation of the integrated
report issued on September 29, 2023 in Japanese, andthe Japanese version is given priority regarding content
and interpretation.

42 Respect for Human Rights
43 Relationship with Society

The stained-glass window

44 Relationship with Local Community

expresses a prayer for healthand depicts St. Luke, the patron

5 Environment

saint of the medical profession,

45 Consideration for the Environment

who are suffering.

45 Environmental Managementadministering medicine to people
This stained-glass window is

46 Environmental Initiatives

displayed in the lobby of48	Information Disclosure Based on the TCFD

Mochida headquarters building.

Recommendation
Mochida Pharmaceutical Group Integrated Report 2023

02

1 Value Creation Story

Basic Management Policies
Mochida Pharmaceutical Group expresses its raison d’être in its motto “Farsighted, Innovative Research” and its corporate
philosophy “Actively contributing to human health and well-being in the field of medicine, totally committed to thedevelopment of innovative products.”. Also, to achieve sustainable growth, we indicate our medium- and long-term
aspirations in its long-term vision and three-year management plan.
We set out our fundamental approach for conducting corporate activities in an appropriate manner, striving forcompliance, and contributing to the realization of a sustainable society in our Code of Conduct.

Basic Management Policies
Raison D’être

Motto

Corporate
Philosophy

Medium- andLong-term Aspirations

Long-term
VisionMedium-termManagement Plan

Fundamental
Approach

Code of Conduct ofMochida Pharmaceutical Group

Long-term Vision/Vision for 2031
Mochida Pharmaceutical Group’s long-term vision is to “Grow as a unique life and healthcare group whose raison d’être isrecognized internationally and which meets medical and healthcare needs.”
In May 2022, to achieve sustainable growth by overcoming a business environment that is expected to become
increasingly severe in the future, we have given shape to our long-term vision and developed the “Vision for 2031” that theGroup aims to realize in 2031.
Amid the diversification and sophistication of medical care, such as addressing intractable and rare diseases that havebeen difficult to treat with conventional small molecules and antibody drugs alone, to take on the challenge of addressing
unmet medical and health needs by incorporating new drug discovery modalities that are expected to grow in the future.
In addition to the current mainstay pharmaceutical and healthcare businesses, to work to position the biomaterials
business as one of the pillars of the next generation.

03

Mochida Pharmaceutical Group Integrated Report 2023

Efforts toward 2031
Pharmaceutical businessTo incorporate new drug discovery modalities, such as cells, nucleic acids, and genes, to enhance our drug discovery
pipeline and maintain the position as a core business;
Among them, to position regenerative medicine products as one of our focus areas and give priority to projects using
mesenchymal stem cells;
To launch products from our pipeline that incorporate new drug discovery modalities, including regenerative medicine
products, by FY2031.
●●●

Biomaterials businessTo promote each project based on alginate, which is expected to have various medical applications, and work for an
early launch and business expansion. Also, to promote development with a view to global expansion.
●

Healthcare businessTo focus on developing high-performance, value-added dermatological skin care products through communications withphysicians, pharmacists, and nurses etc.
To steadily expand the scale of our business by improving our business structure via the investment of sales resources,
etc., focusing on new areas, and introducing new and renewed products.
●●

Global expansion
To expand into overseas markets by offering a lineup of distinctive products that meet the needs in each businesssegment;
To launch highly purified EPA drugs in Vietnam, China, the U.S., and other countries, subsequently to Thailand;Also, to promote the development of medical devices in our biomaterials business and regenerative medicine products in
our pharmaceuticals business, which we aim to launch in the future, with a view to global expansion.
●●●

Scale of business targeted for 2031
We aim to achieve sales of approximately 40 billion yen, including product fields such as the biomaterials business products
and regenerative medicine products in the pharmaceutical business, which are positioned as one of the pillars of the next
generation.
With these new businesses as growth drivers, we aim to develop our business to achieve total net sales of 140 billion
yen and an operating margin of 15%.

Vision for 2031
Long-term Vision

Grow as a unique life and healthcare group whose raison d'être isrecognized internationally and which meets medical and healthcare needs.

Materialize

Vision for 2031
As a life and healthcare group, take on the challenge of addressing unmet medical and health needs
by incorporating new drug discovery modalities that are expected to grow in the future.
Pharmaceuticals

Biomaterials

Expand business domains by
incorporating new drug
discovery modalities(e.g., regenerative medicine
products)

To promote each projectbased on alginate and expand
business

Healthcare
To pursue further growth byinvesting sales resources

Maintain the position as ourcore businessTo lineup distinctive products and lead them to global markets

Mochida Pharmaceutical Group Integrated Report 2023

04

1 Value Creation Story

Medium-term Management Plan
To realize its “Vision for 2031,” Mochida Pharmaceutical Group has adopted the 22-24 Medium-term Management Plan
(22-24 MTP) as an action plan for issues to be addressed over the three-year period from FY2022 to FY2024 from theperspective of the sustainable enhancement of corporate value and in alignment with its Group’s Basic Sustainability Policy.
The business environment surrounding the pharmaceutical industry is expected to become even more challenging
going forward, given the continued promotion of policies to curb drug costs against the backdrop of the problem of securing
financial resources for social security expenses. The Group will continue to invest in growth to realize its “Vision for 2031,” inspite of the expectation of a temporary deterioration in earnings during the 22-24 MTP period.

Medium-term Management Plan
Policy for the fiscal years 2022 through 2024
We will respond to medical and healthcare needs with concentration of the total power of theGroup covering research and development, manufacturing and marketing, pursue sustainablegrowth by promoting selection and focusing processes, and restructure the earnings structure to
respond to further environmental changes.

Key issues to be addressed
During the 22-24 MTP period, we will focus on the following issues under the theme of innovation creation and productivity
improvement.
1. Maximization of profits in targeted areas with a focus on new drugs
To concentrate our resources on the targeted areas (cardiovascular medicine, obstetrics and gynecology, psychiatry, andgastroenterology) to maintain our prominence and maximize earnings from new drugs in our core pharmaceuticalbusiness;
To continually work to maintain a stable supply and proper quality of our products, while promoting improvements in our
cost structure by reducing procurement costs and reviewing our product lineup.
●●

2. Continuous investment in growth to realize the “Vision for 2031”
To pursue investments in business activities that will lead to future competitiveness;
To work to expand and promote the biomaterials business and aim for an early launch;To incorporate new drug discovery modalities, such as cells, nucleic acids, and genes. To give priority to development
especially in the field of regenerative medicine products.
●●

3. Strengthening of the corporate organization to create innovation and improve productivity
To harmonize and coordinate four approaches: optimization of business processes and business quality level, promotionof digital transformation, institutional reform, and the promotion of facility management, in order to achieve efficientorganizational operations and increase corporate value;To continue to support capacity development to improve performance and promote the development of humanresources that will drive innovation;
To focus on strengthening our human resource management system to ensure development and vitalization of humanresources;
To work to improve our organizational capabilities by optimizing our personnel strategy and allocation, whilestrengthening interdepartmental cooperation.
●

●

●

●

Shareholder returns
Mochida Pharmaceutical Group considers it important to continuously strive to increase corporate value by developing
business performance and return appropriate profits to shareholders. Our basic policy is to maintain stable dividends while
enhancing internal reserves for future business development, and we will determine dividends based on an awareness of theimportance of returning profits to shareholders according to revenues.
The business environment is expected to become more severe, we intend to maintain the dividend of at least 80 JPY
per share during the 22-24 MTP period.
We also intend to acquire treasury shares in a flexible manner in response to changes in the business environment.
05

Mochida Pharmaceutical Group Integrated Report 2023

Code of Conduct
Mochida Pharmaceutical Group sets forth its fundamental approach not only for conducting corporate activities appropriatelyfrom the ethical perspective as a life and healthcare business, but also for striving for compliance (i.e. sincerely responding to
the needs of society including legal compliance), which is an absolute precondition for going concern as a social existence
and for contributing to realization of a sustainable society, as follows.

Code of Conduct of Mochida Pharmaceutical Group
1. Fundamental Approach to Business Activities(1)	We contribute to human health / well-being through stable supply of highly effective and safe products as a life /healthcare business.
(2)	Through appropriate business activities, we aim to gain the support of internal and external stakeholders.
(3)	In all our corporate activities, we ensure fairness and transparency, and if ever our commercial interests are atodds with our ethical principles, we choose the ethical course of action.
(4)	We always take environmental impacts into consideration in our business activities.

2. Fundamental Approach towards Social Demands(1)	We comply with laws, regulations and our rules established by each internal department, respond sincerely tothe various demands of society, and conduct corporate activities with high ethical standards. We also pursue
activities on an ongoing basis to nurture ethical awareness of all employees.
(2)	We appropriately manage company information and disclose accurate information quickly and fairly tocommunicate openly with society.
(3)	We respect the personality and individuality of all employees and aim to realize diverse work styles and to
improve the skills of each employee. We also strive to maintain and improve safe and healthy environment at
workplace.
(4)	We make sure that risks which might affect our business activities are managed as an enterprise.
(5)	We maintain a resolute attitude against anti-social forces.

3. Fundamental Approach of Senior Management (Led by Representative Director)(1)	Senior management will serve as a leading model to instill this Code of Conduct in the employees of MochidaPharmaceutical Group, recognizing its responsibility to materialize the spirit of this Code of Conduct.
(2)	Senior management will develop effective internal systems with comprehension of internal and external
feedback and seek to materialize corporate ethics.
(3)	Senior management will provide a whistleblowing hotline as one such effective internal system by which anyone
who notices a violation or potential violation of this Code of Conduct may report quickly and easily. Further, wemanage the facts and details known by whistleblowing in the strictest confidence and strictly preserve theinterests of whistleblowers, prohibiting any retaliatory action or disadvantageous treatment against
whistleblowers.
(4)	In the event of violation of this Code of Conduct, senior management will take responsibility for resolving theissue and strive to investigate the cause and to prevent its recurrence.

Mochida Pharmaceutical Group Integrated Report 2023

06

1 Value Creation Story

Corporate development
Since its foundation, Mochida Pharmaceutical Group has consistently grown by contributing to medical advances in Japanas the first company in Japan to manufacture injections and a developer of “unique products” encompassing hormones,
enzymes and immunology, in line with its motto “farsighted, innovative research.”
The Group will constantly pursue “unique value” and, as a group in the life and healthcare business, will strive to meet
unmet medical and healthcare needs.

History

Unique products

Mochida Pharmaceutical Group traces its origins back to1913 when founder Ryokichi Mochida opened a pharmacy
in Hongo, Tokyo and began manufacturing
pharmaceuticals.
Starting with Ogoko, the first ophthalmic ointment
developed in Japan, Mochida provided unique products,
whilst branching out into new areas such as hormones,
enzymes, immunology, biopharmaceuticals and in-vitro
diagnostic agents.
We became a joint-stock company in 1945 and, withthe launch of sales and marketing activities in 1949, we
became a fully integrated pharmaceutical company covering
everything from R&D through to sales and marketing.
We will continue seeing increasingly diverse medical
and healthcare needs as a business opportunity, andcreating useful new drugs in our core pharmaceuticalbusiness while also tackling new business areas such as
regenerative medicine. We will also put effort into thehealthcare business, building on the progress we have madeover more than 50 years, and into the biomaterials business.

After Ogoko, the first ophthalmic ointment developed inJapan, we developed numerous hormonal preparations,
including Pelanin, the first estrogen preparation developedin Japan, progesterone preparations, and pituitary hormone
preparations, building a reputation as a pioneer ofhormonal preparations. We also released numerous
enzyme preparations such as Sprase, and the technology
we developed in this field was later used as a basis for our
biotechnology activities, including the development ofinterferon preparations.
Epadel, launched in 1990, was the world’s firstpreparation of high purity eicosapentaenoic acid (EPA).
EPA is one of the fatty acids found in fish such as sardines.
Furthermore, we improved the formulation of thisproduct aiming at maximizing intestinal absorption andlaunched Epadel EM in 2022.

1980
●

1932
●

1964

Pelanin(first estrogen preparation
developed in Japan)●

Gonavis(first immunological pregnancy
test kit in Japan)

Collage Cream(first basic skin care product containing
soluble collagen developed in Japan)

1970
●

1951
●

1913
●

Ogoko
(ophthalmic ointment)

1913
Mochida wasfounded in Hongo,
Tokyo.

1913

Sprase(first hyaluronidase
preparation developed in Japan)

1945
MochidaPharmaceuticalCo., Ltd.
was established.

1945(For some products, the year of launch is given)

07

Skina Babe(baby bath oil)

Mochida Pharmaceutical Group Integrated Report 2023

1970
Established theParamedical Division.
1963
Listed on the Second
Section of the Tokyo
Stock Exchange (TSE).

1975
Listed on the First
Section of the TSE.

1970

2022
●

1999
●

Epadel EM(a self-emulsifying formulation of
Net sales
highly purified EPA)
(100 Millions
of Yen)2016

Collage Furfur(first shampoo containing
antimycotic ingredientsdeveloped in Japan)

●

1,200

Lialda®
(treatment for ulcerative colitis)

2011●

Lexapro®
(antidepressant)
1,000

1990
●

Epadel(world’s first high-purity
EPA preparation)

2008●

Dinagest(treatment for endometriosis)

1985
●

800

Miraclid(world’s first ulinastatin
preparation)

600

400

2004
Mochida HealthcareCo., Ltd. commenced
operation.

2005
MochidaPharmaceutical Plant
Co., Ltd. commenced
operation.

2014
MochidaPharmaceutical Sales
Co., Ltd. commenced
operation.

200

2022
Shifted to the
TSE Prime Market.
0

1990

2010

2020

Mochida Pharmaceutical Group Integrated Report 2023

08

1 Value Creation Story

Value Creation Process
Mochida Pharmaceutical Group aims to grow as a unique life and healthcare group which meets
medical and healthcare needs, gaining global recognition for its raison d’être, in accordance with its
corporate philosophy “Actively contributing to human health and well-being in the field of medicine,
totally committed to the development of innovative products.” We are committed to the “creation ofunique products to meet needs,” the “stable supply of high quality pharmaceuticals” and the “proper
provision of valuable information” through our activities in the pharmaceutical, biomaterials andSocial issues

Unmet
medicalneeds

CapitalsFinancial capital
Assets and funds

Human capital

Human resources for accelerationof innovation creation andproductivity improvement

Improvementof QOL

Escalationof
medical costs

Business Activities

PharmaceuticalbusinessIntellectual capitalIntellectual property rights,
knowledge, technology, knowhow,brandsSocial and relationship capital
Collaboration with subsidiaries anddomestic/overseas partnerships

Biomaterials
business

Manufactured capital

Production system enabling stablesupply of high quality products

Women’shealthNatural capital

Healthcare
business

Effective use of energy andresources

Code of Conduct of MochidaPharmaceutical Group
Human resource development
Compliance

Sustainable enhancement
Materiality
09

Mochida Pharmaceutical Group Integrated Report 2023

healthcare businesses. Through the above activities, we aim to provide value as a pharmaceuticalcompany in the form of “improvement in the QOL of patients and their families,” “support for thedifferent stages of a woman’s life” and “contribution to human health and well-being.” We are also
committed to contributing to the realization of a sustainable society through these activities, which will,in turn, lead to achievement of the SDGs, and we will strive for sustainable enhancement of corporate
value through continuous growth as a company needed by society.

Provision of value
Contribution tohuman health and well-being
Improvement in the QOL of patients and their families
Support for the different stages of a woman’s life

Pharmaceuticals

Creation of unique products that meet needs
Stable supply of high quality pharmaceuticals

Medical devices

Proper provision of valuable information

Contribution to a sustainable society
Healthcare products

Our contribution to the SDGs

of corporate value
Material issues which Mochida Pharmaceutical Group should address
as a priority for the sustainable improvement of corporate value
Mochida Pharmaceutical Group Integrated Report 2023

10

1 Value Creation Story

Materiality
Mochida Pharmaceutical Group has formulated Basic Sustainability Policy to contribute to the realization of a sustainable
society through its efforts to provide value as a pharmaceutical company.
We recognize action to address sustainability issues as an important management issue and have identified material
matters which the Group should address as a priority for the sustainable improvement of corporate value as materiality(material issues). In FY2022, we established targets and key initiatives for addressing these material issues.

Basic Sustainability Policy
Mochida Pharmaceutical Group aims to grow as a unique and globally
recognized life and healthcare group via meeting medical and healthcare
needs in accordance with its corporate philosophy; “Actively contributing tohuman health and well-being in the field of medicine, continuously
committed to the development of innovative products.”
For enhancing the value of corporate sustainability, we will strive toprovide value as a pharmaceutical company “contributing to human healthand well-being” under appropriate corporate governance in accordance with
the Code of Conduct of Mochida Pharmaceutical Group. We will also
contribute to realize a sustainable society while making efforts to lessen our
impact on the global environment.

Identifying material issues
Through an assessment focusing on the two aspects of“importance to society” and “importance to the Group,” weidentified “development of human resources,” “compliance,”“creation of unique products to meet needs,” “stable supplyof high quality pharmaceuticals” and “proper provision ofvaluable information” as material issues.

Process for identifying material issues

Step1

Identifying issues

Identify a wide range of issues which are potential
material issues, taking various principles and guidelines(SDGs, GRI Index, ISO26000, etc.) into consideration.

Step2

Organizing potential material issues

Map the identified issues on two axes: importance tosociety and importance to the Group, and narrow down
the most important matters.
Very highImportance to society

The Group identified material issues through the process
shown in the figure on the right, with reference to various
principles and guidelines. We will review our material issues
as appropriate, with adapting flexibly to future changes insociety.

[Identification Process]

High

Step3

Material issues

Importance to the Group

Very highIdentifying material issues

Identify the Group’ s material issues through internal
discussion of the issues organized according to theabove criteria, primarily at meetings of the Board of
Directors and Sustainability Committee.

11

Mochida Pharmaceutical Group Integrated Report 2023

The Five Material Issues
Among the Group’s five material issues, the Group will work on “development of human resources” and “compliance” asmaterial issues underpinning the management foundations and on “creation of unique products to meet needs,” “stable supplyof high quality pharmaceuticals” and “proper provision of valuable information” as material issues in relation to our businesses.
Material issues underpinning the management foundations
We believe that a major driver underpinning corporate value creation is “human resources” and we will, therefore, strive tocreate company and workplaces where every employee can demonstrate their full potential and grow.
We are committed to promoting “compliance,” which is an absolute condition for corporate survival.
●●

Material issues in relation to our businessesWe will continue working on the “creation of unique products to meet needs,” perceiving increasingly diverse medical andhealthcare needs as a business opportunity and adapting to changes of the business environment.
Through the “stable supply of high quality pharmaceuticals” and “proper provision of valuable information,” we willcontribute to human health and well-being and seek enhancement in our corporate value.
●●[Material issues underpinning the management foundations]
Material issues

TargetHuman resource
development

Develop human resources foracceleration of innovation creation andproductivity improvement

Main initiatives●●●

Related SDGs

 upport for performance-enhancing skills
SdevelopmentT raining and education for human resource
development for driving innovationR evision of personnel systems for the realizationof work styles that allow employees to take onchallenges● Implementation of initiatives that help women tostay in good health and to actively participate
Compliance

Seek to increase complianceawareness as an organization●P rovision of compliance training●O peration of whistleblowing and consulting[Material issues in relation to our businesses]
Material issues

TargetCreation ofunique productsthat meet needs

Create farsighted, distinctive products
and meet diversifying medical andhealthcare needs

Main initiatives●

Initiatives for new modalities
Implementation of research and development
projects●●

Stable supply ofhigh quality
pharmaceuticals

Properly implement product quality
management and endeavor tomaintain a stable supply

Provide valuable information incompliance with the Guidelines for
Sales Information Provision Activities
for Ethical Drugs

Development of science & technology
infrastructure

 

●

A
 ctive utilization of open innovation●Implementation of supply chain management●●

Proper provisionof valuable
information

Related SDGs●●

P
 ursuit of stable operation at manufacturingsites
M aintenance and strengthening of reliability
assurance systemA chieve highly useful medical information
provision through a mix of physical and digitalchannelsImplementation of supervision and monitoring ofsales information provision activities

Mochida Pharmaceutical Group Integrated Report 2023

12

1 Value Creation Story

Financial and Non-Financial Highlights
Financial data (consolidated)
Net sales

Operating income and operating margin(Millions of Yen)
120,000(Millions of Yen)
20,000110,179

109,643

13.1

103,261

102,995

101,799

(%)
15.0

11.7
15,00014,3929.7

80,0008.7

10.0

12,003

8.2

10,59010,000

8,807

8,507
5.0

40,0005,000

0FY2018FY2019FY20200

FY2022

FY2021FY2018FY2019FY2020Operating income

Total assets and net assets

FY2021

FY2022

Operating margin

Dividend per share and payout ratio(Millions of Yen)
180,000(Yen)
100.00159,019

125,110

158,831
128,646

126,974

120,665

120,000

163,139

161,791

157,488

0.0

(%)
100.0
85.00

90.00

90.00
80.00

80.00
68.1

126,775

44.7

50.00
40.5

39.9

60,000

50.0

32.4

0

FY2018FY2019Total assets

FY20200.00

FY2022

FY2021FY2018FY2019FY2020

Dividend per share

Net assets

FY2021

FY2022

Payout ratio

Human resources (non-consolidated)
Number of employees, and ratios of female
employees and female managers(Persons)
1,500

Ratio of employees who took childcare leave
(%)
50.0

1,323

1,298

1,298

1,280

(%)
100

100.0

67.7

24.1

25.8

27.7

28.8

100.0

1,252
40.0

1,000

100.0

100.0

100.0

90.3

75.6

FY2021

FY2022

83.6

30.2
30.0

48.8
50

20.0
500
9.4

0

FY2018

Number of employees

13

11.0

9.8

10.8

12.0
10.0

FY2019FY2020

Ratios of female employees

FY2021

FY2022

0.0

Ratios of female managers

Mochida Pharmaceutical Group Integrated Report 2023

0

FY2018

FemaleFY2019Male

FY20200.0

R&D expenditures and R&D expenditures-to-sales ratio

Profit attributable to owners of parent(Millions of Yen)
12,000(Millions of Yen)
20,000(%)
16.0

10,56912.9
16,000

8,587

8,435

11.9

11.7
10.5

13,003

8,000
6,649

11,88412,00011.2
12,29512.0
13,283

10,849
8.0

4,598

8,000

4,000
4.0

4,000

0

FY2018FY2019FY2020

FY2021

FY20220

FY2018FY2019R&D expenditures

FY2020

FY2021

FY20220.0

R&D expenditures-to-sales ratio

Net income per share
(Yen)
300

277.39222.29212.87200

178.93117.56100

0FY2018FY2019FY2020

FY2021

FY2022(Note) The Company also conducted a two-for-one share split of its
common shares on April 1, 2019. Per-share information is
calculated on the assumption that the share consolidation andshare split were conducted on April 1, 2018.

Environment
Trend of CO2 Emissions(tons)
20,00018,731

17,592

Trend of Energy Consumption(terajoules)
400
16,694

16,887375

16,685

10,000

362

354

359

353

FY2019FY2020

FY2021

FY2022200

00FY2018FY2019FY2020

FY2021

FY2022Sites covered ; Head Office, Gotemba site, Fujieda site and every other business site ofMochida Pharmaceutical Co., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant of MochidaPharmaceutical Plant Co., Ltd.
CO2 emissions ; Total amount of energy-related CO2 emissions from fuel and electricity
consumption

FY2018Sites covered ; Head Office, Gotemba site, Fujieda site and every other business site ofMochida Pharmaceutical Co., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant of MochidaPharmaceutical Plant Co., Ltd.
Energy consumption ; Total consumption of all types of energy including electricity, fueloil (until FY2019), gasoline, LNG and city gas

Mochida Pharmaceutical Group Integrated Report 2023

14

1 Value Creation Story

Contributing to human health and wellbeing through our business activities is
our mission.
We intend to focus on the developmentof regenerative medicine products asadvanced therapies for intractable andrare diseases to help improve the QOLof patients.
At the same time, we will provide
support for the different stages of awoman’s life, aiming to realize a society
in which women enjoy good health andcan actively participate.
We are also committed to the realizationof a sustainable society, integrating ESG
into our business activities, including
operating under appropriate corporate
governance, giving consideration toenvironmental issues such as climate,respecting human rights, and working todevelop workplaces where diverse
human resources can participate.

Naoyuki Mochida,
Representative Director, President

15

Mochida Pharmaceutical Group Integrated Report 2023

Interview with the President
us about the business results and achievements in fiscal
Q Tellyear 2022.

A

In a challenging business environment, we started FY2022
expecting declines in sales and income, and our results were inline with our initial expectations.

In the Japanese pharmaceutical industry, the business environment remained harsh as the government continued toadvance measures to reduce drug costs against the background of securing fiscal sources for social security expenses andcompetition among companies intensified.
The year before, in FY2021, we posted record high sales and net income, mainly reflecting growth in sales of new
drugs and royalties received. However, in a challenging business environment, we started FY2022 expecting declines insales and income, and our results were in line with our initial expectations.
The pharmaceutical business segment was impacted by NHI drug price revisions and the launch of generics for
Lexapro® and posted decreased sales, with decline in sales of long-listed products offsetting growth in sales of new drugs.
Operating income fell, reflecting a decrease in gross profit as a result of lower sales in the pharmaceutical businesssegment and a year-on-year increase in SG&A expenses mainly attributable to higher R&D expenditure. Profitability was also
impacted by a one-off increase in expenditure associated with the rebuilding of the new headquarters building and exchange
rate fluctuation.
In terms of new products, we launched Epadel EM Capsules, a self-emulsifying formulation of highly purified EPA,
MOVICOL® Combination Powder HD for the treatment of chronic constipation, and Dienogest Tablets 0.5mg MOCHIDA for
the treatment of dysmenorrhea. Mochida Healthcare Co., Ltd. released Collage Furfur Barrier Cream.
Looking at our development pipelines, we obtained marketing approval for Treprost® Inhalation Solution, a treatment
for pulmonary arterial hypertension (PAH), and released it in May 2023. We believe that the provision of an inhalation solution,
which has a different clinical positioning from Treprost® Injection, which we released in 2014, further increases the options
available for treatment of PAH and can help improve patients’ QOL.
Regarding a pediatric indication of Lexapro® and the antidepressant MD-120, both of which were in the development
pipeline, we completed phase III clinical trials for these drugs but decided to terminate their development. As regards
business partnerships, we in-licensed Omvoh® from Eli Lilly Japan K. K. and Cortiment® from Ferring Pharmaceuticals Co.,
Ltd. Both drugs are indicated for the treatment of ulcerative colitis.
In regenerative medicine products, we entered into an alliance agreement with PuREC relating to the manufacturing
process development of high purity mesenchymal stem cells or RECs (Rapidly Expanding Cells). Meanwhile, with respect tohuman umbilical cord-derived cell products, we entered into a joint commercialization agreement with Human Life CORD
Japan Inc. and started a new project.

us about progress on the 22 - 24 Medium - term Management
Q TellPlan (22 - 24 MTP).
FY2022, which is the first fiscal year of the 22 - 24 MTP, we
A Infocusedon the three priority issues and made good progress.
In May 2022, the Group established its “Vision for 2031,” which embodies its long-term vision, and the three-year “22-24
MTP,” which begins in FY2022. We aim to achieve sustainable growth through expansion of the biomaterials business,
which is one of the pillars of the next generation, and business areas using new modalities such as regenerative medicine
products, and we aim to develop our business to achieve total net sales of 140 billion yen and an operating margin of 15% in
2031. Our 22-24 MTP is the first step towards the realization of our “Vision for 2031” and the three-year period will be spent
Mochida Pharmaceutical Group Integrated Report 2023

16

1 Value Creation Storylaying the groundwork. Over this three-year period, we are focusing on three issues under the theme of innovation creationand productivity improvement.
In FY2022, which is the first fiscal year of the 22-24 MTP, we focused on these three priority issues and made good
progress.
In progress on the first issue of “maximization of profits in targeted areas with a focus on new drugs,” we released
three products in FY2022: Epadel EM Capsules, MOVICOL® Combination Powder HD, and Dienogest Tablets 0.5mg
MOCHIDA. Also, we enhanced our lineup of treatments for ulcerative colitis by in-licensing two products: Omvoh® andCortiment®. We believe that a lineup of treatments for all degrees of ulcerative colitis, from mild to severe cases, will give
more prescribing options based on patient symptoms and disease severity and will be even more helpful for improving the
QOL of patients experiencing difficulties in their daily life. While we will focus on all our targeted areas, that is, cardiovascular
medicine, obstetrics and gynecology, psychiatry, and gastroenterology, gastroenterology will be a particular focus of ourefforts going forward.
Moving onto the second issue of “continuous investment in growth to realize the ‘Vision for 2031,” the biomaterials
business, which we have positioned as one of the pillars of the next generation, is making good progress. We have madeheadway with each project, including preparation for a 510(k) application relating to limb nerve regeneration in the US, in
addition to dMD-001, an articular cartilage lesion restoration material, and dMD-002, a treatment for cavernous nerve injury.
Meanwhile, in the field of regenerative medicine products, we strengthened collaboration with partners and enhanced our
product lineup. In addition, we have also made progress developing our business globally, marketing our high-purity EPA
products worldwide, with emphasis on Asia. Preparations are also underway for the global expansion of our biomaterials
business and regenerative medicine products.
As regards the third issue of “strengthening of the corporate organization to create innovation and improve
productivity,” we sought to strengthen our corporate structure through the utilization of digital technology to transformbusiness processes. We also focused on transitioning to new personnel and wage systems, strengthening our management
structure, and acquiring specialist human resources. Since September 2022, we have been working at our new headquarters

The 22-24 Medium-term Management Plan

Vision for 2031
As a life and healthcare group, take on the challengeof addressing unmet medical and health needs byincorporating new drug discovery modalities that are
expected to grow in the future.

22-24
MTP

25-27
MTP

28-30
MTP

Pharmaceuticals
Expand business domains by incorporating new
drug discovery modalities (e.g., regenerative
medicine products)
Maintain the position as our core business

Biomaterials

Laying the foundation for “Vision for 2031”
Key issues to be addressed
1. Maximization of profits in targeted areas with afocus on new drugs
2. Continuous investment in growth to realize the“Vision for 2031”
3. Strengthening of the corporate organization tocreate innovation and improve productivity

To promote each project based on alginate andexpand business

Healthcare
To pursue further growth by investing sales resources

To lineup distinctive products andlead them to global markets

To create innovation and improve productivity

17

Mochida Pharmaceutical Group Integrated Report 2023

building, which was designed based on the concept of a “connecting office.”
Going forward, we will continue striving for sustainable improvement in our corporate value by focusing on these threepriority issues and expanding our business. We also intend to maintain market dialogue by continuing to disclose information
about our initiatives for the realization of “Vision for 2031” and our progress on the “22-24 MTP.”

Q

Tell us about your initiatives to address materiality (material
issues).

FY2022, we established targets and key initiatives for
A Inidentified
material issues.
In FY2021, the Group identified material matters which it should address as a priority as materiality (material issues). We
identified five material issues, namely “development of human resources” and “compliance” as material issues underpinningthe management foundations and “creation of unique products to meet needs,” “stable supply of high quality
pharmaceuticals” and “proper provision of valuable information” as material issues in relation to our businesses.
In FY2022, we established targets and main initiatives to address these material issues. We believe this will make iteasier for employees to understand the direction in which we aim to move as a company and make the issues we all need toaddress more easily recognizable. We also hope that our efforts to achieve sustainable improvement in our corporate value
will gain greater recognition among our various stakeholders.
We are committed to initiatives to address our material issues and to our broader responsibility, that is, “contribution tohuman health and well-being.”

Q How do you view human capital?
consider “human resources” to be the driving force behind
A We
value creation.
We believe that a major driver underpinning the MochidaPharmaceutical Group’s value creation is “humanresources” and, in our view, it is essential that every
employee can demonstrate their full potential so that we
can grow as a company. To increase our corporate
competitiveness, we must attract, retain and develop
human resources that can thrive amid dramatic changes inthe environment and we also need the active participationof diverse human resources, including older individuals andwomen.
Our aim is that all our employees demonstratecreativity and autonomy in their work. Accordingly, we
foster a challenging spirit and develop environments inwhich employees can grow and fulfil their potential.

Mochida Pharmaceutical Group Integrated Report 2023

18

2 Business Activities

Pharmaceutical businessResearch & Development and Licensing Activities
Research
In our research, we maximize foresight and originality in allprocesses, based on our unique research anddevelopment capabilities and diverse technological knowhow cultivated over many years. We are also taking on thechallenge of addressing unmet medical and health needs,
including addressing intractable and rare diseases thathave been difficult to treat with conventional small
molecules and antibody drugs alone.
Through open innovation and drug discovery utilizing
external resources to incorporate new modalities that are
expected to grow in the future such as cells, nucleic acids,
and genes, we aim to enhance our drug discovery pipeline.
Especially in the field of regenerative medicine products,
we are giving priority to projects using mesenchymal stem
cells, and are currently in the process of developing
therapies using stem cells from human exfoliateddeciduous teeth (SHED), high purity mesenchymal stem
cells (RECs: Rapidly Expanding Cells), and umbilical cordderived mesenchymal stromal cells (HLC-001). We are also
making progress with the selection of nucleic acid drug
development candidates.
The Group is also focusing on the in-licensing of new
drug discovery seeds and technologies. Since 2019, we
have implemented MOIRe (Mochida Open Innovation
Research), our open innovation program for drug discovery
research based on proposals from academic researchers.

Research Center (Gotemba, Shizuoka)

New drug-discovery modalities- Initiatives for the realization of “Vision for 2031” Dental pulp stem cells
Dental pulp stem cells are stem cells taken from the pulp cavity inside the tooth and are a type of mesenchymal stem cell.
Stem cells collected from deciduous teeth are particularly active and have a high capacity for tissue repair and regeneration.
As they can be collected from deciduous teeth, collection can be performed at any time, reducing the invasiveness on thedonor. Therefore, it is expected to be utilized in the future source of cells for regenerative medicine products that can bestably supplied domestically.
We are working on the commercialization of regenerative medicine products with Kidswell Bio Corporation, which is anexpert in human dental pulp-derived stem cells.
RECs
High purity mesenchymal stem cells or RECs (Rapidly Expanding Cells) are isolated from bone marrow aspirate and purified
by a unique method established by PuREC Co., Ltd. (hereinafter “PuREC” ). These cells have superior proliferative,
differentiation, and migratory capacities compared to mesenchymal stem cells isolated by conventional methods.

19

Mochida Pharmaceutical Group Integrated Report 2023

Development
By promoting in-licensing of drug candidates, we are working to enhance the pipeline in targeted areas and the fields inwhich we specialize and also promoting the in-licensing and development of biosimilars. At the same time, we are working tomaximize values of current products through initiatives such as new indications and new formulations, and the discovery ofevidence through post-marketing studies. We are optimizing organization and resource allocation to accelerate
developmental activities with improved accuracy and pushing ahead with drug development in close cooperation withoutside partners and contract research organizations (CROs).
With regard to our development pipelines, we obtained manufacturing and marketing approval for Treprost® Inhalation
Solution (development code: MD-711), a therapeutic agent for pulmonary arterial hypertension. A pediatric indication of
Lialda®, MND-21, a therapeutic agent for hypertriglyceridemia, being developed in collaboration with Sumitomo
Pharmaceuticals (Suzhou) Co., Ltd. in China, ACT-541468, a therapeutic agent for insomnia, being developed incollaboration with Idorsia Pharmaceuticals Japan Ltd., and a pediatric indication of Urece® are all in the Phase III clinical trial
stage. Development of Treprost® Inhalation Solution for the indication of pulmonary hypertension in interstitial lung disease isin the Phase II/III clinical trial stage. In addition, we obtained manufacturing and marketing approval for biosimilar
Pegfilgrastim BS MOCHIDA in September 2023.

[ Pipeline ]
Development Code

As of August 4, 2023

Generic Name

Stage

Indications

Formulation

Remarks <Development country>
Licensed-in from United Therapeutics
Corporation
In-house development <Japan>

MD-711

treprostinil

Approved

Pulmonary arterial
hypertension

MD-0901

mesalazine

Phase Ⅲ

Ulcerative colitis(pediatricindication)

Oral

Licensed-in from Takeda Pharmaceuticals
U.S.A., Inc.
In-house development <Japan>

MND-21

icosapent

Phase Ⅲ

Hypertriglyceridemia

Oral

Collaboration with Sumitomo Pharma (Suzhou)Co., Ltd. <China>

ACT-541468

daridorexant

Phase Ⅲ

Insomnia

Oral

Co-development with Idorsia Pharmaceuticals
Japan <Japan>

FYU-981

dotinurad

Phase Ⅲ

Gout and hyperuricemia(pediatric indication)

Oral

Co-development with FUJI YAKUHIN Co., Ltd.
<Japan>MD-711

treprostinil

Phase Ⅱ / Ⅲ

Pulmonary hypertension
associated with interstitiallung disease

Inhalant

Inhalant

Licensed-in from United Therapeutics
Corporation
In-house development <Japan>

Mochida Pharmaceutical and PuREC are conducting collaborative research into new therapies for spinal diseases with
Hokkaido University.
An investigator-initiated clinical trial in patients undergoing surgery for lumbar spinal stenosis began at Hokkaido
University in April 2022. The therapy being studied targets lumbar intervertebral disc herniation in patients with lumbar spinal
stenosis, and involves filling the cavity created after discectomy with RECs and alginate gel.
We are also involved in collaborative research with PuREC and Shimane University into new therapies for arthritic
disorders utilizing RECs.

HLC-001
HLC-001 is a cell therapy product using mesenchymal stromal cells obtained from the umbilical cord, which is the tissue
connecting the placenta and the fetus. Utilization of the human umbilical cord, which is typically discarded after birth, is
non-invasive for the donor and can also reduce negative impacts on the environment.
Currently, Human Life CORD Japan Inc. is using HLC-001 in research and development targeting multiple intractablediseases and is implementing a phase II clinical trial of HLC-001 for the treatment of non-infectious pulmonary complications(NIPCs) after hematopoietic stem cell transplantation. Mochida Pharmaceutical is working with Human Life CORD Japan Inc.
on the commercialization of HLC-001.

Mochida Pharmaceutical Group Integrated Report 2023

20

2 Business Activities

Licensing Activities
Most of our activities are being conducted in alliance with partners including academia-industry cooperation and industry
collaboration in Japan and overseas. We promote the in-licensing activity of development programs and developed products
in our strong areas and focused fields, the in-licensing and out-licensing of useful products which contribute to the society,including unique drug formulations with additional value which meet customer needs as well as medical needs.
We are also leveraging our alliances to globally expand our EPA drug with high purity in China, Thailand, Vietnam andthe United States. In Thailand, the subsidiary of Meiji Seika Pharma Co., Ltd. obtained approval to import and market our
EPA drug for the treatment of hypertriglyceridemia in October 2020 and commenced sales in April 2021. In Vietnam, an
alliance partner of Meiji Seika Pharma is in the process of applying for approval to import and market our EPA drug.

Intellectual Property (IP) Management
In our business activities, we endeavor to obtain, protect and utilize IP rights, including patents, in anticipation of global
commercialization, licensing, collaborative research and other technical alliances. We also regularly conduct searching andevaluation of third-party’s IP rights from the viewpoint of respecting their rights, and work to prevent IP risks in ourbusinesses. We also carry out various IP-related assessments, especially when making important decisions, for example
when deciding whether to move to the next stage of drug development.
Also with respect to new drug discovery modalities, including regenerative medicine products, we encourage thecreation of intellectual property in anticipation of global expansion and promote the strategic utilization of intellectual property.
The intellectual property of subsidiaries is also collectively managed and applied to facilitate utilization of intellectual
property within the Group.

[ Major Alliances ]Alliance Partner

Country

Year ofConclusion

Subjects

Nissui Corporation*1

Japan

Purchasing of API of Epadel

1990

Bayer AG

Germany

Development, manufacturing and exclusive distribution of Dinagest

1992

EA Pharma Co., Ltd.

Japan

Purchasing and exclusive distribution of Atelec®

1997

Lundbeck A/S

DenmarkDevelopment, manufacturing and exclusive distribution of Lexapro®

2001
2007

United Therapeutics Corporation

U.S.

Development and exclusive distribution of Treprost

Nichi-Iko Pharmaceutical Co., Ltd.

Japan

Purchasing and distribution of Heparinoid Nichi-iko

2007

Takeda Pharmaceuticals U.S.A.,
Inc.*2

U.S.

Development and exclusive distribution of Lialda®

2009

Development and exclusive distribution of biosimilars, including Teriparatide BS
MOCHIDA2010

Gedeon Richter Plc.

HungarySouth Korea®

Development and exclusive distribution of Etanercept BS MA

2012

EA Pharma Co., Ltd.

Japan

Purchasing and exclusive distribution of Atedio®

2013

Janssen Pharmaceutical K.K.

Japan

Purchasing and exclusive distribution of Tramcet®

2013

Development and exclusive distribution of Adalimumab BS MA

2014

LG Chem Ltd.

South Korea

LG Chem Ltd.
EA Pharma Co., Ltd.

Japan

Co-development and co-distribution of Goofice®

2016

FUJI YAKUHIN Co., Ltd.

Japan

Co-development and exclusive distribution of Urece®

2017

United Therapeutics Corporation

U.S.

Development and exclusive distribution of Treprost® Inhalation Solution

2017

EA Pharma Co., Ltd.

Japan

Co-development and co-distribution of Movicol®

2017

Pfizer Japan Inc.*

3

Idorsia Pharmaceuticals Ltd.

Japan
Switzerland

Co-development and co-distribution of MD-120

2019

Co-development and co-distribution of ACT-541468

2019

Japan

Co-development and exclusive distribution of regenerative medicines products

2020

PuREC Co., Ltd.

Japan

Tripartite collaborative research, involving academia using high-purity mesenchymal
stem cells (RECs-Rapidly Expanding Cells) and ultra-purified sodium alginate

2020
2021

Ferring Pharmaceuticals Co., Ltd.

Japan

Purchasing and exclusive distribution of Cortiment®

2022

Eli Lilly Japan K.K.

Japan

Purchasing and exclusive distribution of Omvoh

2022

Japan

Co-development and exclusive distribution of regenerative medicines product HLC001

Kidswell Bio Corporation

Human Life CORD Japan Inc.

®

2023

*1 The name of Nippon Suisan Kaisha, Ltd. changed to Nissui Corporation on December 1, 2022.
*2 This agreement was transferred from Shire Pharmaceuticals Group to Takeda Pharmaceuticals U.S.A., Inc. in April 2023.
*3 This agreement ended in April 2023.

21

Mochida Pharmaceutical Group Integrated Report 2023

Production
Mochida Pharmaceutical Group’s medical products are mainly manufactured by Mochida Pharmaceutical Plant Co., Ltd.
(“MPP”). The Head Office Plant in Ohtawara, Tochigi Prefecture manufactures injectable, solid (tablets, capsules, etc.) andsemi-solid (creams, ointments, gels, etc.) medicines.
Whilst paying attention to safety, we continuously strive to maintain stable operation, stable supply and appropriatequality. We also pursue reliable and efficient drug manufacturing, meeting diverse needs through state-of-the-art
manufacturing facilities and cutting-edge technologies, all of which are compliant with global standards.

Production of High Quality Pharmaceuticals
MPP’s production facilities meet requirements underJapanese Good Manufacturing Practice (JGMP) andinternational guidelines such as the pharmaceuticals Good
Manufacturing Practice guidelines provided by the
Pharmaceutical Inspection Convention and Pharmaceutical
Inspection Co-operation Scheme (PIC/S GMP). In addition,
computer-integrated systems control all the processing
stages, from the receipt of raw materials to final shipping,to ensure that all products are manufactured to the highest
standards of quality.

Mochida Pharmaceutical Plant Co.,Ltd. (Ohtawara, Tochigi)

State-of-the-art Drug Manufacturing
Technologies
Like research & development, pharmaceuticalmanufacturing processes demand a high level oftechnological capability. We utilize decades ofmanufacturing know-how to provide technologically highvalue products such as the enzyme/protein preparations
and biological products at which we excel and products
which are considered difficult to manufacture such as
freeze-dried injectables.

Freeze dryers and automatic guided vehicles (AGV)

Packaging to Meet Healthcare Needs
In our production activities, we constantly strive to meethealthcare needs, and have introduced a definitive totalquantity confirmation system with material code displays
and a unified bar code system, to increase the efficiency of
drug management. We also consider the healthcare
settings in which our products are used and are focusing
on initiatives such as the use of plastic bottles made from
one type of material to facilitate sorting and disposal andthe development of container designs with different shapes
to prevent medical errors.

Tablet press for the production of solid dosage forms

Contracted Manufacturing
Besides manufacturing Mochida Pharmaceutical Group’s
products, MPP is also actively involved in contracted
manufacturing for other companies. Leveraging theexperience built up as the manufacturing subsidiary of apharmaceutical company, MPP reliably manufactures andsupplies high quality products at reasonable prices,
accommodating a wide variety of product specifications
and scale requirements.

Sterility test

Mochida Pharmaceutical Group Integrated Report 2023

22

2 Business Activities

Quality Control and Safety Management
Drugs affect human life and health. Accordingly, in the various processes from drug manufacturing to their distribution anduse, pharmaceutical companies are required to exercise quality control and post-marketing safety management by methods
in compliance with the Ministerial Ordinance on Standards of Quality Assurance for Drugs, Quasi-drugs, Cosmetics andMedical Devices (GQP Ministerial Ordinance) and the Ministerial Ordinance on Standards for Post-Marketing Safety Control
of Drugs, Quasi-drugs, Cosmetics, Medical Devices, and Regenerative Medicine Products (GVP Ministerial Ordinance) issued
by the Ministry of Health, Labour and Welfare.
In Mochida Pharmaceutical Group, the RA, QA and PV divisions strive to ensure reliability through management andevaluation of the quality of products handled, collection, analysis and evaluation of safety information, and other necessary
measures. These divisions also support business activities related to the stable supply of drugs by, for example, working toensure appropriate manufacturing control and quality control and working to manage market shipments.

Sales and Information Provision Activities
Appropriate Information Provision Activities
Pharmaceuticals achieve the desired effects only when used correctly. Pharmaceutical companies are required to provide
healthcare professionals with accurate information about pharmaceuticals quickly, to collect and evaluate information about
efficacy, safety and adverse drug reactions from doctors who have prescribed them and relay this information back tohealthcare professionals. Mochida Pharmaceutical contributes to the treatment of patients by providing healthcare
professionals with information through information provision activities by medical representatives, medical and pharma
seminars, dissemination of information about prescription drugs online, and active use of webinars and other digitalmarketing tools.

Four Targeted Areas
Above all, we are currently putting effort into new drugs, concentrating our resources on four targeted areas: cardiovascular
medicine, especially treatments for lifestyle diseases such as hyperlipidemia, hypertension, and hyperuricemia; obstetrics andgynecology, including treatments for endometriosis and dysmenorrhea, and pregnancy test kits; psychiatry, with emphasison treatments for depression and social anxiety disorder; and gastroenterology, including treatments for ulcerative colitis andchronic constipation.

Cardiovascular medicine
Product Name
International Nonproprietary Name (INN)
Main Indications

Epadel EM

Urece ®

icosapent
Hyperlipidemia

dotinurad
Gout and hyperuricemia

Epadelicosapent
Arteriosclerosis obliterans, Hyperlipidemia(World’s first high purity EPA drug)

23

Mochida Pharmaceutical Group Integrated Report 2023

Atelec ®

Atedio ®

cilnidipine
valsartan/cilnidipine
Hypertention

Treprost ®
treprostinil
Pulmonary arterial hypertension (PAH)Cardiovascular medicine
Urece®, a selective urate reabsorption inhibitor (SURI) released in 2020, is a therapeutic agent for gout and hyperuricemia.
Urece® is expected to be more efficient at lowering serum uric acid levels than existing uricosuric agents because it
selectively inhibits URAT1, a transporter presents in the proximal tubules of the human kidney which promotes thereabsorption of uric acid, whilst having a small effect on other transporters.
We are also making our presence felt in the cardiovascular field as a leading manufacturer of highly purified EPA drugs.
In addition to Epadel, a high-purity EPA drug, which, through various mechanisms, slows atherosclerotic plaque progression,
we launched Epadel EM, a new self-emulsifying formulation of Epadel, in September 2022. Epadel EM is a new formulationof Epadel for the treatment of hyperlipidemia. It uses self-emulsifying formulation technology in order to improve
gastrointestinal absorption. As the world’s first high-purity EPA drug that can be given in a single daily dose, we expect
Epadel EM to help improve the QOL of patients.
In May 2023, we launched an inhaled formulation of Treprost®, a therapeutic agent for the rare disorder pulmonary
arterial hypertension, as an additional option to the injection that is already available. Through these and other products suchas Atelec®, a long-acting calcium channel blocker antihypertensive agent, we aim to increase our involvement in
cardiovascular area.
Obstetrics and Gynecology
Mochida Pharmaceutical has made available an array of products related to women’s health, ranging from hormone
preparations for women, pharmaceuticals and diagnostic tests related to pregnancy and childbirth, pharmaceuticals for
infertility, and treatments for endometriosis and osteoporosis. We are currently engaged in information provision activities,
focusing on Dinagest®, indicated for endometriosis, the reduction of pain caused by adenomyosis, and dysmenorrhea.
Additionally, we are working to provide women with comprehensive health support at every stage of their lives by proposing
use of our products to treat constipation and depression which negatively affect women’s QOL.
Dinagest was launched as treatment for endometriosis in 2008. In 2016, we obtained approval for the additional
indication of reduction of pain caused by adenomyosis, offering a treatment option for adenomyosis for the first time. In
2020, we launched Dinagest Tablets 0.5mg specifically for dysmenorrhea, helping improve the QOL of patients sufferingfrom dysmenorrhea.
Also, at the request of the Japan Society of Obstetrics and Gynecology, we also offer the Heparin Calcium
Subcutaneous Injection MOCHIDA, enabling patients undergoing fertility treatment to administer injections themselves athome. We will continue making our presence felt in the obstetrics and gynecology field by contributing more widely towomen’s health.

Psychiatry
精神科領域
産婦人科領域

Obstetrics and Gynecology

Dinagest

Heparin Calcium Subcutaneous
Injection MOCHIDA

dienogest
Endometriosis, Pain caused byadenomyosis, Dysmenorrhea

heparin calcium
Thromboembolism, infertility

Lexapro ®
escitalopram
Depression and depressive symptoms,
Social anxiety disorderGonacard W
hCG
Pregnancy test kit

Mochida Pharmaceutical Group Integrated Report 2023

24

2 Business Activities

Psychiatry
Lexapro® is a selective serotonin reuptake inhibitor (SSRI), which we launched as an antidepressant in 2011. The treatment
received the approval of an additional indication, social anxiety disorder, in 2015. Low levels of neurotransmitters (specificallyserotonin) are thought to be one of the causes of depression. Lexapro® increases levels of serotonin in the brain by
selectively inhibiting the reuptake of serotonin. This improves the transmission of messages between neurons, alleviating
depression and reducing anxiety. With Lexapro® and other products such as Tecipul, a tetracyclic antidepressant, andGrandaxin, an autonomic nerve regulator, we are working to improve the QOL of patients in the psychiatric field.
Gastroenterology
In the gastroenterology field, we are focusing on Lialda®, Omvoh® and Cortiment®, all treatments for ulcerative colitis, andGoofice® and Movicol®, both treatments for chronic constipation.
Launched in 2016, Lialda® is a drug delivery system (DDS) formulation of mesalazine for oral administration. It is
designed to continuously release the active ingredient mesalazine to and throughout the colon. Approved as a once-daily
oral therapeutic agent in both active and remission phases of ulcerative colitis and efficacious, Lialda® improves patientadherence and has been well received by gastroenterologists who treat ulcerative colitis.
Launched in June 2023, Omvoh® is the world’s first anti-IL-23p19 monoclonal antibody to be used for the treatment ofulcerative colitis. Omvoh® alleviates symptoms by binding to the p19 subunit of the inflammatory human IL-23 cytokine andblocking the action of IL-23. It is used as an induction and maintenance therapy in patients with moderate to severe
ulcerative colitis who have an inadequate response to conventional therapy or therapies.
Launched in September 2023, Cortiment® is an oral drug delivery system (DDS) formulation with budesonide, a locallyacting steroid, as the active ingredient. It is designed to achieve colon-specific delivery of budesonide and sustained releaseof budesonide to the colon.
Launched in 2018, Goofice® is the world’s first bile acid transporter inhibitor, indicated for the treatment of chronic
constipation. Goofice® inhibits the bile acid transporter that regulates reabsorption of bile acids thereby increasing the flow ofbile acids to the colon. The dual action of moisture secretion and bowel movement promotion enhances natural defecation.
Other advantages include that Goofice® is administered once daily and the dosage may be adjusted according to patient
symptoms.
Also launched in 2018, Movicol® is a polyethylene glycol preparation indicated for treatment of chronic constipation.
The drug increases the moisture in the stool thereby raising the volume of stool to promote defecation. Overseas, Movicol®
has been widely used in both children and adults.

Gastroenterology

25

Lialda ®

Cortiment ®

Movicol ®LD

mesalazine
Ulcerative colitis

budesonide
Ulcerative colitis

macrogol 4000, sodium chloride,sodium bicarbonate, potassium chloride
Chronic constipation

Omvoh ®

Goofice ®

mirikizumab
Ulcerative colitis

elobixibat
Chronic constipation

Mochida Pharmaceutical Group Integrated Report 2023

Movicol ®HD

Initiatives for the Treatment of Ulcerative Colitis
Ulcerative colitis is classified as an “intractable disease” by the Japanese government. The disease repeats an“active phase,” when the intestinal mucosa becomes inflamed and symptoms such as diarrhea and abdominal
pain appear, and a “remission phase,” when the inflammation subsides and no symptoms appear. The
number of patients with ulcerative colitis in Japan is estimated at 220,000* and is increasing year by year.
With a lineup consisting of Lialda®, Cortiment®, Omvoh® and the biosimilar Adalimumab BS MA,
Mochida Pharmaceutical has products to treat all degrees of ulcerative colitis, from mild to severe cases. We
also provide products that can help doctors diagnose and monitor the condition such as Calprotectin
MOCHIDA, an in-vitro diagnostic agent. We are committed to helping improve patient QOL by proposingprescription according to symptoms and severity and increasing treatment options for ulcerative colitis.
*Murakami Y. et al.: J Gastroenterol., 54, 1070-7 (2019)

Lineup of treatments for all degrees of ulcerative colitis,from mild to severe cases (including intractable cases)
Mild

Moderate

Severe5-ASA: Oral MMX formulation

Lialda®
Locally acting steroid: Oral MMX formulation

Cortiment® (launched September 2023)
Biological product: TNFα monoclonal antibody

Adalimumab BS MA
Biological product: An anti-IL-23p19 monoclonal antibody

Omvoh® (launched June 2023)
Calprotectin MOCHIDA and Calprotectin POCT MOCHIDA, an in-vitro diagnostic agent

Generic Drugs
Mochida Pharmaceutical Group is working on the genericdrug business, focusing on lines with strong businesspotential such as authorized generic drugs and biosimilars
in cooperation with Mochida Pharmaceutical Sales Co.,
Ltd. and other business partners.
Mochida Pharmaceutical Sales Co., Ltd. (“MPS”) is
the company which handles generic drugs within theGroup. In its activities associated with generics, MPS
focuses on quality assurance, the provision of information
and reliable supply and also gives consideration to theprevention of medical errors, the safety of healthcare
professionals, and improvement of patient adherence.
Going forward, MPS will continue to play a central role indeveloping and providing generic drugs which meet theneeds of patients and healthcare professionals.

Authorized generic in the obstetrics andgynecology field

Teriparatide BS MOCHIDA

Mochida Pharmaceutical Group Integrated Report 2023

26

2 Business Activities

Biomaterials BusinessIn addition to the current mainstay pharmaceutical and healthcare businesses, we are focusing on the biomaterials business,
which is positioned as one of the pillars of the next generation. In particular, we are promoting and developing various
projects in the biomaterials business based on alginate, which has numerous potential applications in the medical andbiotechnological field.
With regard to the development pipeline, we submitted the application for manufacturing and marketing approval forthe cartilage repair material dMD-001 in May 2023. Meanwhile, dMD-002, a treatment for cavernous nerve injury, is in thetherapeutic exploratory study stage. In addition, we are preparing to submit a 510(k) application related to limb nerve
regeneration in the US.
We are also working on the development of intervertebral disc tissue restorative materials using alginate gelation
technology in the affected area and tissue adhesion prevention materials for tissue resection using alginate sheets. We arealso examining the feasibility of alginate-based pharmaceutical materials such as alginate fibers for antibody production*1 andalginate pancreatic islet capsules*2.
*1 Alginate fibers which are embedded with antibody-producing cells and used to improve antibody productivity*2 Pancreatic islets encapsulated in alginate capsules used for implantation in type-I diabetic patients[ Medical device ]
Development code

As of August 4, 2023

Generic nameStage

Intended use or indications

Remarks <Development country>

dMD-001

sodium alginate

Filed

Articular cartilage lesion

In-house development <Japan>

dMD-002

sodium alginate

Therapeutic exploratory study Cavernous nerve injury

In-house development <Japan>

Properties and potential applications of alginate- Initiatives for the realization of “Vision for 2031” ●Sodium alginate is a high polymeric substance derived from brown algae. It becomes a highly viscousaqueous solution, and it becomes a gel with calcium ions, which are divalent cations, being added. This
property can be used to process the material into various forms and hardness during gelation.

●

Possible applications of alginate in the biotechnological and medical fields include 2D and 3D culture, celland tissue preservation, scaffolds for tissue regeneration, encapsulation of secretory cells, and sustained
release of drugs.

●

We are working on various applications of endotoxin-free sodium alginate that can be used in livingorganisms. Alginate, which is a polysaccharide, can be a nutrient source for cells. It has also been shownthat when a gel is formed on the affected area, the alginate gel remains in the area for a certain period oftime because no enzymes exist in
the body to break it down and it
has little impact on cells due to its
Versatile shape
Application
similarity to biologicalcomponents. The relationship of● 2D and 3D cultures
alginate to native cells when
● Cell and tissue preservation
High viscosity
Bead-shaped
implanted in a wound or othersolution
capsules● Scaffolds for tissue regenerationsites is also currently being● Encapsulation of secretory cells
studied: we expect further● Sustained release of drug
potential applications.
String-shaped

27

Mochida Pharmaceutical Group Integrated Report 2023

Sheet

Healthcare BusinessAs a member of Mochida Pharmaceutical Group, Mochida Healthcare Co., Ltd. (MHC) has developed high value-added skincare products under the motto “farsighted, innovative research.” We will continue developing innovative products using thecapabilities we have fostered through the development of pharmaceuticals.

Main activities
Our main activities in the healthcare business are the development, production, distribution and sales, providing scientificinformation and marketing of skincare products.

Development

Scientific Information

In order to deliver skin care products that are both low
irritating and functioning based on dermatology, MHC
gains an understanding of needs through communication
with physicians, pharmacists, and nurses and develops
products supported by clinical trial data conducted bydermatologists. MHC is committed to developing productsthat make an impression on customers, striving for “Japanfirst” products, unique products in Japan, and “No.1”
products, rather than run-of-the-mill products that can befound anywhere.

MHC has established a free call and email based
counselling service, which customers can use to makeinquiries about products and skincare regimes or give
feedback directly. MHC also actively participates in relevant
academic societies and seminars to gather the latest
information about skincare and also provides scientificinformation about products to hospitals, pharmacies, anddrug stores.

Production
To deliver high quality products, MHC manufactures its
products based on a strict quality control system, mainly at
the Saitama Plant of Mochida Pharmaceutical Plant Co.,
Ltd. When manufacturing products, MHC is constantly
aware of the need to maintain a stable supply of products
and the need to reassess manufacturing practices,
including raw materials and containers, in light ofenvironmental concerns.

Distribution and Sales
Precisely because MHC’s products have been developed
through close collaboration with dermatologists, MHC
wants its products to be recommended by experts at the
point of sale. With this in mind, MHC gives top priority topharmacies and drug stores which have pharmacists andbeauty advisors working at them. MHC puts effort not only
into store sales but also into mail order sales, aiming to
make its products widely available to customers withsensitive skin and other skin problems. Going forward,
MHC aims to raise awareness of its skincare products
among care facilities, etc. in the hope of being able tocontribute to skincare in the care domain.

Marketing
MHC strives to gain an understanding of skincare-related
consumer trends and market conditions through paperbased and online surveys, and other means. Taking the
feedback and requests of people suffering with skinproblems and sensitive skin seriously, MHC also engages
in information provision and promotional activities to ensurethat information about its products and skincare is readily
available. MHC’s website features not only productinformation but also advice from medical professionals on
how people can care for their skin properly, ranging fromskin care in atopic dermatitis to skincare as part of nursing
care.
Skin Care Course (Advice from medical professionals)
https://hc.mochida.co.jp/skincare/

Mochida Pharmaceutical Group Integrated Report 2023

28

2 Business Activities

Major Skin Care Product lines
Major skin care product lines include the Collage series, which provides total skin care for sensitive skin, the Collage Furfur
series developed from skin research, which are the first haircare and bodycare products in Japan to contain an antimycotic(antifungal) agent, Skina Babe, which is the first skin care product that babies experience, and the Skina series of easy
hygiene products for the bedridden.

Total skin care for sensitive skin

Collage series
In 1980, before the expression “sensitive skin” was incommon use, we succeeded in developing Collage Cream,
Japan’s first basic skin care product containing natural
soluble collagen (S-Collagen), through repeated testing incooperation with dermatologists. Focusing on lowirritating, fragrance-free, color-free products for delicate
skin, we continued to launch dermatological skin careproducts one after another as a pioneer of skin careproducts for sensitive skin.
Focusing on sensitive skin for half a century, MHC
now offers gentle, high-performance basic skin careproducts such as the Collage Repair series, which, through“far-sighted care*1” and “routine care*2,” achieves “sensitive
skin management*3,” and the Collage B.K. Age series for
those with “sensitive, dry aging skin*4,” which provides“anti-aging skincare*5.”
MHC also has an extensive line-up of products tocater for different customer lifestyles and needs, including
the Collage Soap series of nonirritating soap formulated foreach specific skin type and use, and Collage D Medi
Power series of moisturizing products for dry skin (including
people with atopic eczema).
*1 A daily skin care regimen to prevent skin roughness and dryness(applies to quasi-drugs only)*2 Routine skin care, usually morning and night*3 A consistent skincare regimen for sensitive, dry skin
*4 Aging skin with a tendency to become dry and sensitive*5 Age-appropriate moisturizing and skin care regimen

29

Collage Repair series

Collage B.K. Age series

Collage Soap series

Collage D Medi Power series

Mochida Pharmaceutical Group Integrated Report 2023

Haircare and bodycare products containing

The first skincare babies experience

antimycotic (antifungal) agent

Skina Babe series

Collage Furfur series
Collage Furfur, Japan’s first medicated shampoo
containing an antimycotic (antifungal) agent (miconazole
nitrate), was developed based on the novel concept ofcaring for the scalp, given that dandruff is triggered by thegrowth of fungus on the scalp. MHC currently offers alineup of hair care products containing an antimycotics fordifferent scalp problems, offering Collage Furfur Next
Shampoo and Rinse for dandruff or an itchy scalp, Collage
Furfur Premium Shampoo for scalp odor, and Collage
Furfur Scalp Shampoo for excess sebum. MHC’s products
have been welcomed by people worried about scalp issues
such as dandruff, an itchy scalp, scalp odor and excess
sebum.
Meanwhile, MHC provides Collage Furfur Soap, abodywash containing an antimycotics, for those sufferingfrom skin problems, Collage Furfur Hair Growth series*6
containing a female hormone*7 for women worried about
hair thinning and hair loss, and Collage Furfur Barrier
Cream*6 for preventative skincare for those wearing diapers
to protect the skin from moisture, soiling and other irritants.
*6 Does not contain an antimycotics*7 Ethinylestradiol

Special care is needed when bathing a baby with soap assoapy hands are slippery. Skina Babe bath lotion for babies
was developed in response to calls from obstetricians andgynacologists for a less slippery, safer bath lotion forwashing babies without using soap. Today, more than 50
years after its launch, Skina Babe still enjoys wide
popularity.
In 2018, we launched Skina Babe Milky Lotion, which
protects the skin from birth by providing very rich moisture.

Easy hygiene products for the bedridden

Skina series
The Skina series is a series of hygiene products for those
who are bedridden either in hospital or at home. We
developed hygiene products for washing the skin withoutwater in 1970, after listening to nurses working on hospitalwards and striving to develop products only apharmaceutical company could develop. Wanting to put
smiles on the faces of carers and patients alike, MHC hascontinued providing these popular products for many years.
Today, MHC offers an extensive line-up of products
for different scenarios, including dilution type products anddry shampoo.

Collage Furfur series

Skina Babe series

Skina series

Mochida Pharmaceutical Group Integrated Report 2023

30

3 Governance

Basic Policy on Corporate GovernanceMochida Pharmaceutical strives to increase Mochida Pharmaceutical Group’s corporate value by placing the fulfillment ofcorporate governance and the reinforcement of compliance at the axis of Group management, to better respond to ourstakeholders’ trust and expectations.

Basic Policy
As part of Mochida Pharmaceutical Group policy on
reinforcing corporate governance, important management
decisions are discussed thoroughly by the Management
Policy Meeting, if necessary, and are then made throughdiscussion by the Board of Executive Managing Officers
and the Board of Group Management, both of which meeton a weekly basis.
Mochida Pharmaceutical’s Board of Directors
includes Outside Directors, and the executive officer
system has also been introduced to clearly separate thefunctions of the Board of Directors into management
decision-making and the supervision of business
operations so as to expedite management decision-making
and business operations.
For the purpose of strengthening objectivity andaccountability for the nomination of Members of the Board,
Executive Officers and Audit & Supervisory Board Members
and for the determination of remuneration for Members of
the Board and Executive Officers, Mochida Pharmaceuticalhas established the Nomination and Compensation
Advisory Committee, a majority of which comprises
Outside Directors, as a voluntary advisory body toRepresentative Directors, and our corporate decisions onsuch nomination and compensation are made in light ofthe opinions of said Committee.
Mochida Pharmaceutical maintains, operates andevaluates its internal control system based on resolutions
by the Board of Directors under the Companies Act and on
the Financial Instruments and Exchange Act. Specifically,
we maintain a companywide risk management system
based on the “Mochida Pharmaceutical Group Risk
Management Rules” to manage major risks affecting ouroverall business, as part of our internal control system
based on the Companies Act.
As measures for reinforcing compliance, MochidaPharmaceutical has established the “Code of Conduct ofMochida Pharmaceutical Group” and seeks to embody thespirit of the code through regular meetings of the Ethics
Committee, which is chaired by the President and includes
the Compliance Officer (a Member of the Board who is theofficer in charge of corporate ethics or the supervisor for
corporate ethics) and outside experts, and theperformance of internal checks and the deliberation ofissues. We have also developed a framework forcompliance across the Mochida Pharmaceutical Group,
including the establishment of an Ethics and Compliance
Committee Working Group, chaired by the Compliance31

Mochida Pharmaceutical Group Integrated Report 2023

Officer and including the general managers of operations
and presidents of subsidiaries, and the Corporate Ethics &Compliance, and we provide regular ethics training toMochida Pharmaceutical Group officers and employees.
Mochida Pharmaceutical Group will continuously
strive to ensure thorough compliance, and to respondrapidly to various changes in the business environment,
while incorporating appropriate advice from our attorneys,
certified public accountants and other experts.
In addition, we will further examine our actions toaddress sustainability issues at the Sustainability
Committee established in March 2022 as an advisory bodyto the Representative Directors so as to promotesustainability activities across Mochida Pharmaceutical
Group.
Mochida Pharmaceutical has established the Internal
Audit Department as an internal audit organization. The
Internal Audit Department ensures the effectiveness ofinternal audits mainly by implementing internal audits of thebusiness operations of Mochida Pharmaceutical Group in
its entirety from the viewpoint of compliance and risk
management, reporting the results of such audits andproviding advice to the Board of Executive Managing
Officers and the Board of Directors, reporting to the Audit& Supervisory Board Members, and holding meetings with
all Audit & Supervisory Board Members on a regular basis.
The Audit & Supervisory Board comprises two Full-time
Audit & Supervisory Board Members and three Outside
Audit & Supervisory Board Members, making a total of fivemembers. To secure lawfulness and transparency ofmanagement decision-making and business operations, inaccordance with fiscal year auditing policy and plans, each
Audit & Supervisory Board Member strives to smoothly
communicate with Members of the Board, including
Outside Directors, the Internal Audit Department andothers, collect the relevant information and improve theauditing environments. Each Audit & Supervisory Board
Member also attends meetings of the Board of Directors
and other pivotal meetings, and examines business
operations and assets at the headquarters, main businessoffices and subsidiaries of Mochida Pharmaceutical,
including supervision and verification of the internal control
system, the independence of the Accounting Auditor, andthe appropriateness of audits performed by the Accounting
Auditor.
The Internal Audit Department, Audit & Supervisory
Board Members, and Accounting Auditor work closely toensure the effectiveness of the audits.

Corporate Governance Structure
Overview of the corporate governancesystemMochida Pharmaceutical Group has the Board of Directors
and the Audit & Supervisory Board as corporate
organizations under the Companies Act. The Board of
Directors is composed of 11 Members of the Board,
including four Outside Directors. The Audit & Supervisory
Board is composed of five Audit & Supervisory Board
Members, including three Outside Audit & Supervisory
Board Members.
As reasons for adopting the current corporate
governance structure, considering MochidaPharmaceutical’s size and business nature, we judge thatat this point in time, the most suitable governance structure
to pursue management efficiency and to ensure theappropriate function of checking the management
simultaneously requires: (1) management decision-making
by the Board of Directors with a reasonable number ofmembers, comprising inside Members of the Board withthorough knowledge of Mochida Pharmaceutical and its
business and Outside Directors with abundant knowledge
and experience in specialized fields, and (2) a system forchecking the management by Audit & Supervisory Board
Members including Outside Audit & Supervisory Board
Members.

Corporate Governance StructureMembers of the Board

Board of Excecutive
Managing Officers

Ethics and Compliance Committee
Nomination and Compensation
Advisory Committee

Sustainability Committee
Ethics and Compliance Committee
Working Group

Corporate Ethics & Compliance

Specific matters considered at Board of
Directors’ meetings
The Board of Directors deliberates and determines
important matters in accordance with the standards for
Board Meeting agenda. Main agenda items include
proposals for the general meeting of shareholders,
important personnel changes and organizational changes,
establishment, revision and abolition of important internal
regulations, acquisition and cancellation of own shares,
medium-term and single-year management and businessplans (including state of progress), sustainability initiatives(including status of activities), evaluation of effectiveness ofBoard of Directors, risk management and compliancestructure, and disposition of important property. In terms ofspecific matters considered, in FY2022, the Board of
Directors deliberated on and established the “Vision for2031” and the “22-24 Medium-term Management Plan”
and also deliberated and determined matters such as theconclusion of a purchasing and exclusive distributionagreement for Omvoh®, an anti-IL-23p19 monoclonal
antibody, with Eli Lilly Japan K.K.

Mochida Pharmaceutical Group Integrated Report 2023

32

3 Governance[ Details of Main Meetings Held ]Meeting

Members

Details

Board of Directors

10 Members of the Board (including 3 Outside Directors)

13 meetings held
Attendance rate of Members of the Board
including Outside Directors was 97%.

Audit & Supervisory Board

5 Audit & Supervisory Board Members (including 3 Outside Audit & Supervisory Board Members)

16 meetings held
The attendance rate of Audit & Supervisory
Board Members including Outside Audit &Supervisory Board Members was 100%.

Board of Executive Managing
Officers

Representative Directors, and Directors and Executive Officers

50 meetings held

Board of Group Management

Representative Directors, Directors and Executive Officers, and Presidents of MochidaPharmaceutical Plant Co., Ltd. and Mochida Healthcare Co., Ltd.

26 meetings held

Ethics and Compliance
Committee

4 Members of the Board (including 1 Outside Director), 2 Audit & Supervisory Board Members(including 1 Outside Audit & Supervisory Board Member) and 1 outside expert

1 meeting held

Nomination and Compensation
Advisory Committee

3 Members of the Board (including 2 Outside Directors)

5 meetings held
Attendance rate of Members of the Board
including Outside Directors was 87%.

Management Policy Meetings

Representative Directors, and Directors and Executive Officers

113 meetings held

Executive Officer Meeting

Representative Director & President and Executive Officers

12 meetings held

Sustainability Committee

5 Directors, 2 Managing Executive Officers

3 meetings held

[ Main Expertise and Careers of Members of the Board and Audit & Supervisory Board Members ]Name

Corporate
Management

Research andDevelopment

International
Experience

Naoyuki Mochida

○

○

○

Chu Sakata

○

○

○

Junichi Sakaki○

Kiyoshi Mizuguchi○

Yutaka Kawakami○

Motoi Mitsuishi○

Finance,
Accounting○○

Certification○○
Pharmacist○

Pharmacist
Pharmacist

○

○

○

○

○

○

○

Tomoaki Sonoda

○

○

○

○

○

○

○

○

○

Attorney in the State of
New York, U.S.A.

○

Attorney-at-law○

Shigeaki Yoshikawa
Yoshiharu Hashimoto
Audit &
Masayoshi Takeda
Supervisory
Kyosuke Wagai
Board
Akiko Suzuki
Members
Yoshifumi Miyata

Legal Affairs,
CompliancePharmacist

Tomoo Kugisawa
Nana Otsuki

IT○

Keiichi Sagisaka

Membersof theBoard

Business
Strategy,Marketing○

Certified public accountant
○

○

○

○
○

○

○
○

○

Certified public accountant○

Attorney-at-law○(Note) The list above does not cover all the experience, Knowledge, and capability, etc., of each Member of the Board of the Company and each Audit & Supervisory Board Member / candidate.

33

Analysis and evaluation of the effectivenessof the Board of Directors

Outside Directors and Outside Audit &Supervisory Board Members

Every year, Mochida Pharmaceutical conducts a survey
targeting all Members of the Board and all Audit &Supervisory Board Members including Outside Directors
and Outside Audit & Supervisory Board Members and theBoard of Directors analyzes and evaluates the effectivenessof the Board of Directors as a whole based on the survey
results.
The results of the surveys targeting Audit &Supervisory Board Members are used as reference.
Results of analysis and evaluation in FY2022
confirmed that the Board of Directors functioned effectively.
We will continue making improvements to maintainand increase the effectiveness of the Board of Directors inlight of the analysis and evaluation results, such ascontinuing to hold more substantive discussions on the
direction of management including corporate strategy.

In Mochida Pharmaceutical’s standards and policies on
independence of Outside Directors, we appoint individuals
who have no special interests in the company, who haveextensive knowledge and experience in management, legal
affairs or another specialist area, and who can be expected
to incorporate deep management insights into MochidaPharmaceutical’s management and operations. In MochidaPharmaceutical’s independence standards and policies on
independence for Outside Audit & Supervisory Board
Members, we appoint individuals who have no special
interests in the company, who have a considerable degreeof knowledge and experience of finance and accounting or
extensive knowledge and experience of corporate
management, legal affairs or another specialist area, andwho can be expected to incorporate deep management
insights into the audits on Mochida Pharmaceutical.

Mochida Pharmaceutical Group Integrated Report 2023

[ Reasons for the Appointment of Outside Directors and Outside Audit & Supervisory Board Members and Expected Role, andDetails of Major Activities in FY2022 ]Name

Attendance atmeetings of theBoard of Directors

Reasons for Appointment and Expected Role

(13 times in total)

Attendance atmeetings of the
Audit &
Supervisory Board(16 times in total)

Tomoo
Kugisawa

As an attorney-at-law, Tomoo Kugisawa is an expert in corporate legal affairs and incorporates deep management
insights into Mochida Pharmaceutical’s management and operations. He is expected to fulfill the management
supervisory function by using such deep insights to make appropriate remarks and comments at meetings of the Boardof Directors.
Tomoo Kugisawa is a member of the Nomination and Compensation Advisory Committee, which is an advisory bodyto the Representative Directors.

13

－

Nana
Otsuki

Nana Otsuki worked for many years as an analyst at financial institutions, has extensive specialist knowledge andexperience gained as a university professor and has also held many public offices. She is expected to fulfill the
management supervisory function by using such deep insights to make appropriate remarks and comments at meetingsof the Board of Directors.

12－

Tomoaki
SonodaTomoaki Sonoda has extensive specialist knowledge and experience gained as a university professor in accounting. He
is expected to fulfill the management supervisory function by using deep management insights to make appropriate
remarks and comments at meetings of the Board of Directors.
Tomoaki Sonoda is a member of the Nomination and Compensation Advisory Committee, which is an advisory bodyto the Representative Directors.

11*－

Shigeaki
Yoshikawa

Shigeaki Yoshikawa has extensive experience and expertise in Japan and overseas at a general trading company andalso has corporate management experience as Representative Director of a think-tank consulting firm. He is expected
to fulfill the management supervisory function by using such deep insights to make appropriate remarks and comments
at meetings of the Board of Directors.

(New
appointment)－

Kyosuke
Wagai

As a certified public accountant, Kyosuke Wagai has extensive specialist knowledge and experiences of audits, etc. andincorporates deep management and audit insights into Mochida Pharmaceutical’s audits. He is expected to fulfill the
management supervisory function by using such deep insights to make appropriate remarks and comments at meetingsof the Board of Directors.

13

16

Akiko
SuzukiAs an attorney-at-law, Akiko Suzuki is an expert in corporate legal affairs, and incorporates deep management insights
into Mochida Pharmaceutical’s audits. She is expected to fulfill the management supervisory function by using suchdeep insights to make appropriate remarks and comments at meetings of the Board of Directors.

13

16

Yoshifumi
MiyataYoshifumi Miyata has gained extensive experience (including management experience) working at financial institutions,etc. and has also served as an Outside Audit & Supervisory Board Member at another company (manufacturingindustry). He is expected to fulfill the management supervisory function by using such deep insights to make appropriate
remarks and comments at meetings of the Board of Directors.

13

16* During FY2022, the total number of meetings of the Board of Directors held on or after June 29, 2022 when Tomoaki Sonoda assumed office was 11.

Message from Outside Director
I have served as an Outside Director of MochidaPharmaceutical for many years. Leveraging theexperience gained from more than 30 years’
involvement in corporate legal affairs as an attorney-atlaw, I actively give feedback and advice, focusing onwhether meetings of the Board of Directors are run inan appropriate manner, whether each Director performs
his or her duties properly, and whether comfortableworkplaces for employees are maintained.
A pharmaceutical company also has a
responsibility to bring benefits to its shareholders,
creditors, business partners, employees and otherstakeholders, whilst giving due consideration to theenvironment, local communities and other factors.
Moreover, a pharmaceutical company has a
responsibility to maintain a stable supply of high quality
drugs for patients, and a manufacturer of new drugs
like Mochida Pharmaceutical has the additional
responsibility of developing or in-licensing andcontinuously providing new drugs aimed at enhancing
and improving the health and quality of life of patients
who are struggling due to a lack of effective drugs. This
necessitates the efficient generation of profit and thepayment of dividends to shareholders on the one handand a huge amount of expenditure on the other, tomaintain high quality and a stable supply and todevelop new drugs, including expenditure on
equipment, quality control, talented human resources
and R&D.
To ensure that a good balance between MochidaPharmaceutical’s two responsibilities is maintained,
corporate governance for sound management needs tobe upheld and all employees -- not only directors andexecutive officers involved in management -- need to
uphold a spirit of compliance with laws and regulations.
As Outside Directors, we intend to contribute to
Mochida Pharmaceutical’s sound and sustainable
development by drawing on our own knowledge toactively make proposals and give advice at meetings ofthe Board of Directors and other meetings, to ensurethat soundmanagement ismaintained and all
officers and employees
feel a sense of
responsibility for
maintaining andimproving patient’s
lives and health in theperformance of theirduties.
Tomoo Kugisawa, Outside Director

Mochida Pharmaceutical Group Integrated Report 2023

34

3 Governance

Officers

Members of the Board

1
Apr. 1981
May 1986
Apr. 1988
Apr. 1991
Apr. 1996
Apr. 1997
Jun. 1997
Jan. 1998
Jan. 1999
Apr. 2010
Jun. 2016

Representative Director, President

Naoyuki Mochida
Joined the Company
Earned an MBA from Indiana University in the U.S.
Joined Ajinomoto Co., Inc.
Joined the Company
General Manager, Head of the Clinical Development Planning
Department
General Manager, Head of the Finance Department
Member of the Board
Senior Executive Managing Officer, Head of the Corporate Planning
Department
Representative Director, President (to the present)
Vice-chairman of Mochida Memorial Foundation for Medical andPharmaceutical Research
Chairman of Mochida Memorial Foundation for Medical andPharmaceutical Research (to the present)

2

Apr. 1982 Joined the Mitsubishi Bank, Ltd.
May 2007 General Manager of Syndicated Finance Division and the Global Head ofFeb. 2009
Jun. 2011
Jun. 2011
Apr. 2012
Jun. 2012
Jun. 2013
Jun. 2016
Jun. 2017
Jun. 2021

4

Member of the Board, Senior Executive Managing Officer

Junichi Sakaki, Ph.D.

Mar. 1993 Joined Ciba-Geigy AG
Jul. 2005 General Manager, Research Strategy and Alliances at Novartis
Dec. 2006
Jul. 2009

Apr. 2010
Jun. 2012
Jun. 2014
Jun. 2016
Oct. 2018
Jun. 2021
Jun. 2022
Jan. 2023
Jun. 2023

Pharma K.K.
Joined Banyu Pharmaceutical Co., Ltd.
Director, Chemistry Department, Tsukuba Research Laboratories
Joined the Company
General Manager, Head of Research Planning and Management
Department
Head of Discovery Research
Executive Officer, Deputy Head of Business Development Division
Member of the Board, Executive Officer, Business Development
Member of the Board, Executive Managing Officer
Executive Managing Officer, Business Development and Biomaterials
Business
Member of the Board, Senior Executive Managing Officer (to thepresent)
Senior Executive Managing Officer, Business Development,
Supervisor for Biomaterials Business
Senior Executive Managing Officer, Business Development andBusiness Promotion, Supervisor for Biomaterials Business
Senior Executive Managing Officer, Business Development,
Supervisor for Business Promotion and Biomaterials Business (to thepresent)

Representative Director, Senior Executive Vice President

5
Apr. 1982
Apr. 2003
Apr. 2010
Jun. 2012
Jun. 2015
Jun. 2017
Jun. 2021
Sep. 2022
Jun. 2023
Aug. 2023

Syndication at the Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)
Regional Head for the Middle East at BTMU
Advisor of the Company
Member of the Board, Executive Officer and Assistant Officer, Planning& Administration
Executive Officer and Assistant Officer, Planning & Administration, Headof Planning & Administration Division
Executive Officer, Planning & Administration, Head of Planning &Administration Division
Member of the Board, Executive Managing Officer
Representative Director, Senior Executive Managing Officer, Supervisor
for Planning & Administration, Audits and Corporate Ethics
Assistant to President, Senior Executive Managing Officer, Operations ingeneral (to the present)
Representative Director, Senior Executive Vice President (to the present)

Joined the Company
Head of Metropolitan Branch Office
Head of Tokyo Branch Office
Executive Officer
Deputy Head of Pharmaceutical Business Division
Head of Pharmaceutical Business Division
Member of the Board, Executive Officer
Member of the Board, Executive Managing Officer,
Pharmaceutical Business, Head of PharmaceuticalBusiness Division
Apr. 2015 Executive Managing Officer, Pharmaceutical Business
Jun. 2016 Member of the Board, Senior Executive Managing Officer(to the present)
Jun. 2021 Senior Executive Managing Officer, PharmaceuticalBusiness and Mochida Healthcare (to the present)
Apr. 1980
Apr. 2003
Apr. 2005
Jun. 2007
Apr. 2008
Jun. 2009
Jun. 2010
Jun. 2013

Member of the Board, Executive Managing Officer

Joined the Company
Head of Development Research
General Manager, Head of Clinical Research Department
Executive Officer, Head of Clinical Research and Development Division
Member of the Board, Executive Officer
Member of the Board, Executive Managing Officer (to the present),
Research and Development
Executive Managing Officer, Research and Development, Supervisor for
Mochida Pharmaceutical Plant
Executive Managing Officer, Research and Development, Supervisor for
Mochida Pharmaceutical Plant, Head of Research Division
Executive Managing Officer, Research, Supervisor for Development andMochida Pharmaceutical Plant
Executive Managing Officer, Supervisor for Research, Development andMochida Pharmaceutical Plant (to the present)

12
7

9
4

Mochida Pharmaceutical Group Integrated Report 2023

Keiichi Sagisaka

Kiyoshi Mizuguchi, Ph.D.

15

35

Member of the Board, Senior Executive Managing Officer

3

Chu Sakata

13
11

2

14
6

1

16
8

3

10
5

Member of the Board, Executive Managing Officer

6 Yutaka Kawakami, Ph.D.

Apr. 1985 Joined Eisai Co., Ltd.
Apr. 1998 Joined Pfizer Japan, Inc.
Oct. 2003 Transferred to Office of Pharmaceutical Industry Research of Japan
Oct. 2005
Dec. 2012
Jun. 2015
Jun. 2017
Apr. 2019
Jun. 2019
Jun. 2022

Jun. 2017
Jun. 2018
Oct. 2019
Apr. 2021
Jun. 2021
Sep. 2022

Apr. 1987 Registered as an attorney-at-law (to the present)

Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)
Executive Officer, Regional Head for Thailand, Bangkok BranchManager at BTMU
Executive Officer, Deputy Head of Asia & Oceania Group (incharge of special projects), General Manager of Asia & Oceania
Sales Division, Singapore Branch Manager at BTMUManaging Executive Officer, Head of Transaction Banking Groupat BTMU
Representative Director, Deputy President at Mitsubishi UFJ
Research and Consulting Co., Ltd.
Outside Corporate Auditor at the Nanto Bank, Ltd. (to the present)
Advisor of the Company
Member of the Board, Executive Managing Officer, Planning &Administration and Technonet, Head of Planning &Administration Division (to the present)

Apr. 1995
Apr. 2005
Jun. 2006
Jun. 2012
Apr. 2019
Jan. 2023

Outside Director

Joined Tokyo Fuji Law OfficePartner at Tokyo Fuji Law Office
Professor at Omiya Law School
Outside Corporate Auditor at OG Corporation
Member of the Board of the Company (to the present)
Visiting professor at Chuo University Law School (to the present)
Representative at Tokyo Fuji Law Office (to the present)

Jun. 2013

Outside Director

10 Tomoaki Sonoda

11 Shigeaki Yoshikawa

Apr. 2004 Certified public accountant (to the present)
Apr. 2006 Professor at Keio University Faculty of Business and Commerce

Apr. 1977 Joined Mitsubishi Corporation
Apr. 2008 Executive Officer, General Manager of Global Strategy &Dec. 2005 Managing Director at UBS Securities Japan Co., Ltd.
Jun. 2011 Managing Director at Merrill Lynch Japan Securities Co., Ltd.
Sep. 2015 Professor in Division of Management at Graduate School ofApr. 2017

Apr. 1987 Joined the Mitsubishi Bank, Ltd.
May 2012 Regional Head for Thailand, Bangkok Branch Manager at theOutside Director

8 Tomoo Kugisawa

Pharmaceutical Manufacturers Association
Director of Clinical Submissions Department at Pfizer Japan Inc.
Joined the Company
Deputy Head of Clinical Research and Development Division
Executive Officer
Head of Clinical Research and Development Division
Head of RA, QA and PV Division (to the present)
Member of the Board, Executive Officer, RA, QA and PV (to thepresent)
Member of the Board, Executive Managing Officer (to the present)

9 Nana Otsuki

Jan. 2016
Sep. 2016

Member of the Board, Executive Managing Officer

7 Motoi Mitsuishi

Management, Nagoya University of Commerce & Business (to thepresent)
Executive Officer at Monex, Inc.
Member of Operating Committee of Agricultural and Fishery
Co-operative Savings Insurance Corporation
Member of Fiscal System Council of Ministry of Finance (to thepresent)
Outside Director of Credit Saison Co., Ltd. (to the present)
Outside Audit & Supervisory Board Member of Tokio Marine Holdings,
Inc. (to the present)
Member of Regulatory Reform Promotion Council (to the present)
Expert Director at Monex, Inc.
Member of the Board of the Company (to the present)
Senior Fellow of Pictet Asset Management (Japan) Ltd. (to the present)

Jul. 2015

May 2017
Jun. 2019
Jun. 2020
May 2023
Jun. 2023

Oct. 2009
Apr. 2018
Jan. 2020
Jun. 2022

Outside Director(to the present)
Member of Contract Surveillance Committee, Ministry of Internal
Affairs and Communications (to the present)
Visiting Professor at Musashino University (to the present)
Member of Third Bidding Surveillance Commission, Ministry of
Finance (to the present)
Member of the Board of the Company (to the present)

Coordination Department at Mitsubishi Corporation
Apr. 2010 Executive Officer, Chief Regional Officer for the Europe, Middle East

and Africa CIS at Mitsubishi Corporation
Apr. 2013 Executive Vice President, Regional CEO, Middle East & Central Asia

at Mitsubishi Corporation
Oct. 2016 Executive Vice President at Mitsubishi Research Institute, Inc.
Dec. 2016 Executive Vice President, Representative Director at Mitsubishi

Research Institute, Inc.
Jun. 2017 Management Council Member at Fukushima Medical University (tothe present)
Dec. 2020 Full-time Senior Corporate Advisor at Mitsubishi Research Institute, Inc.
Apr. 2021 Visiting Professor in Department of Business Design; Research

Fellow at Institute of Current Business Studies, Showa Women’s
University (to the present)
Jan. 2022 Senior Corporate Adviser at Mitsubishi Research Institute, Inc. (tothe present)
Jun. 2022 Outside Director at Azbil Corporation (to the present)
Jun. 2023 Member of the Board of the Company (to the present)

Audit & Supervisory Board Members
Full-time Audit & Supervisory Board Member

Full-time Audit & Supervisory Board Member

14 Kyosuke Wagai

Joined Nippon Sheet Glass Co., Ltd.
Joined the Company
General Manager, Head of Finance & Accounting Department
Executive Officer
Full-time Audit & Supervisory Board Member (to the present)

Oct. 1977
Sep. 1982
Jul. 1991
Jul. 2010

12 Yoshiharu Hashimoto

13 Masayoshi Takeda

Apr. 1985 Joined the Mitsubishi Bank, Ltd.
Jan. 2009 General Manager of Yotsuya Commercial Banking Office at the Bank

Apr. 1985
Jun. 2008
Apr. 2015
Jun. 2016
Jun. 2022

May 2011
Jun. 2013
Jun. 2016
Jun. 2017
Jun. 2017
Jun. 2019
Jun. 2022
Jun. 2023

of Tokyo-Mitsubishi UFJ, Ltd. (BTMU)
General Manager of Osaka Corporate Banking Division No. 2 of Osaka
Corporate Banking Group at BTMU
Vice President, Head of Business Development Unit at Sharp
Corporation
Full-time Corporate Auditor at Mitsubishi UFJ Capital Co., Ltd.
Joined the Company
Full-time Audit & Supervisory Board Member
Member of the Board, Executive Officer, Planning & Administration andTechnonet, Head of Planning & Administration Division
Member of the Board, Executive Managing Officer
Full-time Audit & Supervisory Board Member (to the present)

Outside Audit & Supervisory Board Member

Jun. 2016
Jul. 2016
Jun. 2017
Jun. 2017
Jun. 2023

Joined Tohmatsu Awoki & Co
Registered as a certified public accountant (to the present)
Partner at Deloitte Touche Tohmatsu LLC
Executive Board Member of the Japanese Institute of Certified
Public Accountants (JICPA)
Outside Audit & Supervisory Board Member of the Company (to thepresent)
Audit & Supervisory Board Member of JICPA
Outside Audit & Supervisory Board Member at Tokyo Electron
Limited (to the present)
Representative Director and Chairman at XBRL Japan Inc. (to thepresent)
Auditor of Japan Federation of Shiho-Shoshi Lawyer’s Associations(to the present)

Outside Audit & Supervisory Board Member

15 Akiko Suzuki

16 Yoshifumi Miyata

Apr. 1974 Registered as an attorney-at-law (to the present) Joined Anderson

Apr. 2006 Executive Officer and General Manager of Financial Institution

Relations Department at the Dai - ichi Mutual Life Insurance
Company.

Mōri & Rabinowitz
Sep. 1990 Joined the Company
Sep. 1998 Joined Tokyo Eiwa Law Office
Sep. 2002 Joined Tokyo Office of Oh-Ebashi LPC & Partners Partner (Member of

Outside Audit & Supervisory Board Member

Apr. 2009 Managing Executive Officer of the Dai - ichi Mutual Life Insurance

Company
Jun. 2010 Outside Audit & Supervisory Board Member of Tsugami

the LPC)

Corporation

Jun. 2019 Outside Audit & Supervisory Board Member of the Company (to theJun. 2012 Representative Director and Vice-President of Trust & Custodypresent)

Services Bank, Ltd.
Oct. 2018 Outside Director at Wellness Communications Corporation (tothe present)
Jun. 2021 Outside Audit & Supervisory Board Member of the Company (tothe present)

Executive Officers

Hitoshi Mizuno

Masaaki Naotsuka

Yoshitaka Hosaka, Ph.D.

Junichi Nezu, Ph.D.

Taiji Hayano

Executive Managing Officer,
Biomaterials Business
Head of Biomaterials Business
Division

Executive Managing Officer,
Mochida Pharmaceutical Plant

Executive Managing Officer,
Business Promotion
Head of Business Promotion Division

Executive Managing Officer,
Research

Executive Officer,
Development
Head of Clinical Researchand Development Division

Tomokazu Matsusue

Kenji Miyajima

Yasushi Taguchi

Takeshi Mochida

Executive Officer
Head of Business Development
Division

Executive Officer
Head of Pharmaceutical Business
Division

Executive Officer
Head of Research Division andHead of Research Center

Executive Officer
Deputy Head of Clinical Research andDevelopment Division

Reiko Nakano

Junichi Makino

Shinji Ninomiya

Masaaki Yokosuka

Executive Officer
Deputy Head of Business
Development Division

Executive Officer
Deputy Head of Planning &Administration Division andGeneral Manager, Head of
Human Resources Department

Executive Officer
Deputy Head of PharmaceuticalBusiness Division

Executive Officer
General Manager, Head of Legal &Compliance Department

Mochida Pharmaceutical Group Integrated Report 2023

36

3 Governance

Officers’ Compensation
Directors
Mochida Pharmaceutical has set a total amount ofcompensation, etc. for Members of the Board approved at
a General Meeting of Shareholders, and the decision(approved by the meeting of the Board of Directors on
June 29, 2021) on the policy for determining the details ofcompensation, etc. of individual Members of the Board(hereinafter, the “determination policy”) was made basedon the opinion of the Nomination and Compensation
Advisory Committee, which is made up of a majority of
independent Outside Directors, in order to ensure fairness
and transparency. Mochida Pharmaceutical has decided(by resolution of the Board of Directors) to delegate matterssuch as the monthly compensation of individual Membersof the Board, and the payment timing, payment method
and individual amounts of bonuses, etc. to theRepresentative Directors (President and Vice President) todecide through discussion, taking the determination policy
and opinion of the Nomination and Compensation Advisory
Committee into consideration. These matters weredelegated to the Representative Directors based on the
judgment that the Representative Directors are the rightpeople to determine the details of individual compensation,etc. by evaluating contribution of Members of the Board
and wider performance, while taking into account theperformance of the Group as a whole.
Compensation for Members of the Board consists offixed monthly compensation and bonuses, which are
performance-based. The percentages of fixedcompensation (monthly compensation) and performancebased compensation (bonus) have been set at a level thecompany deems appropriate in order to incentivize
Members of the Board to strive for improvement incorporate value.
Fixed compensation (monthly compensation) is apredetermined amount of base compensation plus anadditional amount based on the position or skills etc. ofMembers of the Board and it is paid on a monthly basis.
Performance-based compensation (bonus) is anamount based on monthly compensation adjusted toreflect a comprehensive evaluation of the company’s key
performance indicators (consolidated net income andconsolidated operating income; hereinafter “consolidated
results”) as well as the contribution of each Members of theBoard. More specifically, two separate bonuses are paid:

the winter bonus, which is calculated based on the monthly
compensation, and the summer bonus, which is theamount calculated based on monthly compensation
adjusted to reflect the consolidated results and individual
performance.
Such consolidated results is evaluated by the
consolidated results for the relevant fiscal year incomparison with past consolidated results including theconsolidated results for the previous fiscal year.
The compensation of Outside Directors consists offixed monthly compensation.
In addition, a fixed amount of the monthly
compensation determined according to each position ofMembers of the Board is paid as stock-based
compensation through contribution to a shareholders’association for Members of the Board and Audit &Supervisory Board Members and continuous acquisition of
the Company’s shares. Members of the Board are
generally required to hold such acquired shares throughout
their term of office.

Audit & Supervisory Board Members
Mochida Pharmaceutical has set a total amount ofcompensation, etc. for Audit & Supervisory Board
Members approved at a General Meeting of Shareholders
and allocations to each Audit & Supervisory Board Member
are determined through consultation between the Audit &Supervisory Board Members.
Compensation for Audit & Supervisory Board
Members consists of fixed monthly compensation andbonuses, which are performance-based. The performancebased compensation (bonus) is determined based on theduties each Audit & Supervisory Board Member is
expected to perform, considering the consolidated results
and reflecting on the contribution of the particular Audit &Supervisory Board Member.
The compensation of Outside Audit & Supervisory
Board Members consists of fixed monthly compensation.
In addition, a fixed amount of the monthly compensation
is paid as stock-based compensation through contribution
to a shareholders’ association for Members of the Board
and Audit & Supervisory Board Members Officers andcontinuous acquisition of the Company’s shares. Audit &Supervisory Board Members are generally required to holdsuch acquired shares throughout their term of office.

[ Total amount of compensation, total amount of compensation for eligible Members of the Board and Audit & Supervisory Board Members by type and number ]Classification of Members of theBoard/Audit & Supervisory Board
Members
Members of the Board (excluding
Outside Directors)
Audit & Supervisory Board Members(excluding Outside Audit &Supervisory Board Members)
Outside Officers

37

Total amount ofcompensation(millions of yen)

Total amount of compensation by type (millions of yen)
Fixed
Performance-based Non-monetary compensation of thecompensationcompensation
Performance-based compensation

Number of eligible
officers (persons)

323

175

147

－

7

44

29

14

－

3

46

46

－

－

7

Mochida Pharmaceutical Group Integrated Report 2023

Business Risks
Mochida Pharmaceutical Group enacted Risk Management Rules applicable to Mochida Pharmaceutical Group and alsoestablished the Risk Management Committee composed of the Heads of Divisions, the presidents of subsidiaries and otherrelevant members, putting in place a structure for recognizing risks which might have a considerable adverse impact on
Mochida Pharmaceutical Group’s business and management (major risks) and for considering, assessing and discussing
measures and policies for addressing such risks.

[ Major Risks and Risk Description ]Major Risks

Risk Description

Risks associated withresearch anddevelopment

Researching and developing pharmaceuticals and other products requires a huge amount of capitaland time. However, development may be suspended or delayed due to reasons such as a failure toprove the initially anticipated efficacy or the emergence of unforeseen adverse drug reactions in theprocess. This may necessitate further development attempts or additional trials or lead to the loss of
future revenue opportunities or other consequences and earnings may be lower than initiallyanticipated as a result.

Risks associated withproduction andprocurement

Mochida Pharmaceutical Group does its best to ensure the quality of its products, including in its
supply chain requirements, in accordance with regulations based on applicable laws. However, thequality issues such as defects of products produced at Mochida Pharmaceutical Group plants or
the delay or suspension of supply of products or raw materials by a specific supplier on which theGroup depends due to some factor, despite the procurement management divisions and theimplementation of procurement management, could lead to the recall of products, the delay orsuspension of shipments or supply shortages, the revocation of a license, the suspension ofoperations or other administrative disposition, decreased revenue or other consequences, and theGroup’s operating results and financial position may be severely impacted as a result.

Risks associated withbusiness alliances

Mochida Pharmaceutical Group forms business alliances with other companies across all its
operations, including joint research, development and marketing and the in-licensing and outlicensing of products. Future circumstances may put an end to such alliances, affecting the revenue
outlook and resulting in lost opportunities and causing earnings to be lower than initially forecast or
expected.

Risks associated withlaws and regulations
and system reforms

The research and development, manufacture and marketing of pharmaceuticals is subject topharmaceutical-related laws and regulations and other regulations (including measures to reduce
healthcare costs such as healthcare system reforms, encouragement of the use of generics and
NHI drug price reductions) and any changes such as tighter regulation could severely impact theGroup’s operating results and financial position. Failure to comply with such regulations could leadto the recall of our products, revocation of our license, the suspension of our business operations orother administrative disposition or a claim for compensation against us and decreased revenue due
to a loss of trust, and our operating results and financial position could be severely impacted.

Risks associated withadverse drug reactions

Mochida Pharmaceutical Group does its best to ensure the reliability of clinical trials and the qualityof products, in accordance with strict regulations based on pharmaceutical-related laws andregulations concerning the quality and safety of pharmaceuticals, and endeavors to mitigate
associated risks by taking out insurance to cover damage compensation claims. However, theunforeseen adverse drug reactions could lead to the recall of products, the suspension of sales andmarketing, litigation and compensation for damages, decreased revenue due to a loss of trust andother consequences, and our operating results and financial position could be severely impacted.

Risks associated withbusiness continuity

In case major natural disasters or accidents could seriously affect or damage MochidaPharmaceutical Group’s plants, laboratories, branches, offices and other sites (including the
shutdown or failure of information systems) or events such as epidemic could lead to the stagnationof business activities and/or supply shortages caused by the suspension of operations at plants, theGroup’s operating results and financial position could be seriously impacted as a result.

Mochida Pharmaceutical Group Integrated Report 2023

38

3 GovernanceCompliance
Mochida Pharmaceutical Group is working to promote compliance through the structure and activities described below.
In addition, the Group provides training to those in Pharmaceutical Business Division on a regular basis to encouragefair competition.

Ethics and Compliance Committee
The Committee comprises the President of MochidaPharmaceutical, the Compliance Officer (the officer in chargeof corporate ethics or the supervisor for corporate ethics), andoutside experts. It is chaired by the President. The Committee
carries out internal checks and deliberates issues, striving toincorporate the spirit of the Code of Conduct of MochidaPharmaceutical Group into Group activities.

Ethics and Compliance Committee Working
Group
The Committee comprises general managers of operations,presidents of subsidiaries and other relevant members andis chaired by the Compliance Officer. It is responsible forthe review of internal rules and systems for preventing fraud
and improper conduct, and for raising necessary issues
and reporting specific issues. Each member is responsible
for ethics and compliance within their area of operations,
including compliance with the Code of Conduct (including
compliance training) and prevention of improper conduct.

Establishment of compliance-related units
We have established the Internal Audit Department and the
Corporate Ethics & Compliance independent from ourbusiness units and business subsidiaries, to promote theobservation of compliance.

Communication of message from the President
We distribute a message from the President to employees
in the form of video news. The video news distributed inautumn each year always focus on latest incidents of
non-compliance such as corporate misconducts of othercompanies and the President himself always stresses theimportance of compliance.

Compliance training and awareness-raising
activities
The Group provides compliance training to meet all training
needs, for example, the Corporate Ethics & Complianceprovides ethics and compliance training to employees uponentry to our company and upon appointment to a managerial
post as well as rank-based, companywide and officersoriented training, all related to ethics and compliance, and thestaff in charge of ethics and compliance within each business39

Mochida Pharmaceutical Group Integrated Report 2023

unit provide ethics and compliance training in consistency
with the operational characteristics of such business unit. We
also endeavor to raise awareness of compliance, by, forexample, disseminating information about compliancethrough the intranet on a regular basis.

Corporate ethics and compliance helpline
We install a hotline via which any officer or employee(including who has left the company within one year) who
has discovered an actual or potential non-complianceincident or issue may make whistleblowing reports or seek
advice. Through the hotline, any officer and employee mayeither report to or consult with the staff or the officer incharge of corporate ethics and compliance within thecompany or directly report to or consult with an outside
lawyer or other expert. We have also established standards
for handling whistleblowing reports within MochidaPharmaceutical Group and take appropriate measures toensure that anyone making a whistleblowing report orseeking advice does not suffer disadvantageous treatment.

Initiatives concerning medical and healthresearch involving human subjects
We have enacted “Ethical rules on life science and medical
research involving human subjects” to ensure that life scienceand medical research involving human subjects respects humandignity and human rights and is conducted appropriately with
understanding and cooperation of society. In accordance withthese rules, we established the Research Ethics Committee.

Ethical response to the treatment oflaboratory animals
Mochida Pharmaceutical has established guidelines inaccordance with the “Basic guidelines for the conduct ofanimal experiments in implementing agencies under thejurisdiction of the Ministry of Health, Labour and Welfare”
and gives due consideration to animal dignity and theprinciples of the 3Rs*. In terms of inspection and evaluation
by an independent third party, we undergo onsite
inspections by the Center for Accreditation of Laboratory
Animal Care and Use in Japan Health Science Foundationand have obtained accreditation.
*Replacement: methods which avoid or replace the use of animals; Reduction: methods
which minimize the number of animals used for experiment; and Refinement: methods
which minimize suffering and improve welfare of animals

4 Society

Development and Use of Human Resources
Strengthening our human resource
management system
Mochida Pharmaceutical Group considers “humanresources” to be a major driver underpinning corporate
value creation. By developing human resources for theacceleration of innovation creation and productivity
improvement, we will strive for sustainable improvement incorporate value driven by the personal growth of ouremployees and our own corporate growth.
The Group is in the progress of strengthening its
human resource management system to ensure
development and vitalization of human resources. We
revised the personnel system that forms the basis forhuman resource management and put the new system into
operation from April 2023. The new system incorporates
mechanisms for reflecting the role and contribution ofindividuals in their treatment and mechanisms forencouraging diverse human resources to actively
participate. The Group has clarified and reorganized therole of each position and this enables early promotion. In
addition, we conducted a review of our treatment of elderly
persons with expertise. We also focus on securing thehuman resources required to expand our operations
overseas.

Development of human resources
Mochida Pharmaceutical Group sees the development of
human resources as an important issue, and provides
training by rank and by job and focuses on employees’skills development and the development of leaders. In
terms of training by rank, we encourage general employees
to improve their business knowledge and skills throughnew employee training and mid-level employee training andsupport performance-enhancing skill development.
Additionally, we identify and develop human resources thatwill contribute to innovation creation through leadershiptraining and management candidate training. In manager
training, we seek to share our strategic vision and further[ Groupwide Training Structure ]Tiered program

Job-specific program

Manager training
Formanagers

Practical training for newly
appointed managers, newmanager training(1st year,
2nd year), deputy generalmanager training, generalmanager training, etc.

Assessment training
For generalemployees

Leadership training
Mid-level employee
training
New employee training

Business unit-specifictraining

develop leadership skills in addition to further enhancing
basic skills.
In training by job, employees acquire specialist
knowledge and master higher level business skills throughtraining programs designed for each specific business unit.
We have also introduced domestic and overseas
training programs for the development of core humanresources. Each year, we conduct open recruitment andselected employees study abroad at business schools inJapan and receive degrees. In addition, we operate aself-development support system aimed at encouraging
employees to use their initiative and nurturing a challenging
spirit through support for the acquisition of qualifications
and participation in educational programs.
Through such education and training, we seek toraise the level of competence and skills of humanresources and grow and become stronger as a group.

Use of diverse human resources
Female participation and career advancement in theworkplace
Mochida Pharmaceutical Group is working to hire and train
women and increase the ratio of female managers. We arealso developing programs to support women in theirvarious life stages and working to solve any issues througha working group consisting mainly of female employees tosupport women’s health. Under an action plan based on
the Act on the Promotion of Female Participation andCareer Advancement in the Workplace, MochidaPharmaceutical has set a target ratio of female managersof 12% or higher (FY2021- FY2025). Aiming to be acompany that empowers women in the workforce, we areworking to develop female employees and to change
mindsets, including showcasing female manager rolemodels, preparing career plans for female candidates, andproviding career training and seminars for female employees.

Promotion of mid-career recruitment
Mochida Pharmaceutical Group recruits human resources
with the skills, knowledge and experience
we need and highly skilled professionals
Open application
Self-development
needed for business growth, global
basis
expansion and the execution ofstrategies to help increase its corporate
value. Especially in the biomaterials
business, which we are focusing on as
Support for
Domestic training
one of the pillars of the next generation,
self-development
and overseas study
and acquisition of
we are actively recruiting professionals.
programqualifications
The ratio of mid-career hires increases
year by year and many mid-career hires
play an active part in a wide variety ofdepartments.
Mochida Pharmaceutical Group Integrated Report 2023

40

4 Society

Employment of persons with disabilities
Mochida Pharmaceutical Group is working to expand
employment of persons with disabilities. MochidaPharmaceutical’s employment ratio of persons withdisabilities stood at 2.4% in FY2022 (the legal employment
quota for persons with disabilities is 2.3%), and all such
employees play an active part in various departments.
Employment of elderly persons
With the mandatory retirement age set at 60, we haveintroduced a system under which all employees who havereached mandatory retirement age and wish to continue
working are reemployed until the age of 65. Throughinitiatives such as changing the treatment of elderly
employees in FY2013 to increase their motivation to workand changing their treatment in FY2020 in response toenactment of the Act on Improvement of Personnel
Management and Conversion of Employment Status forPart-Time Workers and Fixed-Term Workers, we have put
in place a system which gives elderly persons even more
motivation to work. Mochida Pharmaceutical Group also
gives 55-year-old employees the opportunity to reassess
their future plans including their professional lives andmanagement of their assets through the provision of life
plan seminars and support for diverse work styles.

Life plan seminar (Held in December 2022)[ Diversity of human resources*1 ]FY2020 FY2021 FY2022
Ratio of new female recruits (%)

64.3

63.2

62.2

Ratio of female managers (%)

  9.8

10.8

12.0

Ratio of female employees who tookchildcare Leave (%)

100.0

100.0

100.0

Ratio of male employees who tookchildcare leave (%)

48.8

90.3

75.6

Ratio of disabled employees (%)

  2.4

  2.6

  2.4

Ratio of mid-career hires*2 (%)

32.3

35.6

35.1

*1 Figures of Mochida Pharmaceutical only (not the ones of the Group)*2 Percentage of people employed as mid-career employees that became permanent
employees in accordance with the Comprehensive Promotion of Labor Measures Act

Aiming to be a great place to work
Developing a pleasant workplace
Mochida Pharmaceutical Group is constantly working toachieve work-life balance and diverse, flexible working
styles. We have also been working on creating anenvironment where employees can work efficiently withhigh motivation, including compliance with the Work Style
Reform related law (such as setting limit on overtime workand grasping of working hours by managers andsupervisors), encouraging employees to use flextime androlling out flextime to non-office-based employees as well,operating a discretionary working system at ResearchLaboratories, expanding the scope of telework, anddeveloping and enhancing business communication tools.
In FY2022, we considered a system of annual paid leaveon an hourly basis and put the system into operation fromFY2023.
Meanwhile the rebuilding of the headquarters officebuilding was completed and we began operating out of the
new building from September 2022. We also developed
more comfortable office environments in a bid to further
improve productivity through initiatives such as theintroduction of digital technologies.

Employee engagement
We conduct an employee survey of all MochidaPharmaceutical Group employees every year, mainly to
41

Mochida Pharmaceutical Group Integrated Report 2023

assess employee engagement. The survey findings aredisclosed to all employees and used to consider andimplement measures to solve issues and increase
employee motivation. We also implement a range ofinitiatives aimed at increasing job satisfaction including
conducting interviews with employees to obtain feedback
about their work and workplace, listen to their requirements
and give advice on any concerns or issues raised.

Child care and nursing care
Mochida Pharmaceutical Group has been working torealize workplaces which make it easier for employees tobalance child care and nursing care with work. We haveincreased support for child care and nursing care, having
thus far implemented initiatives such as longer child careleave, introducing some paid childcare leave, introducing
nursing care leave that exceeds the statutory requirements,
introducing a reduced working hour system, establishingleave for maternity hospitalization, more widespread use ofaccumulated paid leave for child care and nursing care,
expanding flextime to those working shorter working hours
due to child care, operating telework, and revising childcare leave regulations as a measure to prevent maternity
harassment.
Moreover, we have set target percentages for thosetaking child care leave of 90% or higher for women and30% or higher for men (FY2021-FY2025). We implement a
range of initiatives to encourage employees to take childcare leave, including providing training to raise awarenessand increase understanding about childcare-related
systems and working to encourage male employees totake advantage of childcare-related systems.
In recognition of our efforts to support childcare at
the workplaces of Mochida Pharmaceutical, Mochida
Healthcare and Mochida Pharmaceutical Plant, we
received the Minister of Health, Labour and Welfare’s“Kurumin” certification, which isawarded to companies that meet thestandards of the Act on Advancementof Measures to Support Raising NextGeneration Children.

Occupational health andsafetyHealth and safety
Aiming to create a workplace where employees can workwith peace of mind, we have built a structure for managing
and promoting health and safety across MochidaPharmaceutical Group and, as well as holding health andsafety committee meetings at each site, we are working toprevent occupational accidents and ensure workplace
health and safety.
Mental health and health consultations
Based on the “Guidelines for Maintaining and Improving

Worker’s Mental Health” issued by the Ministry of Health,Labour and Welfare, Mochida Pharmaceutical Group
strives to enhance the structure and systems for supporting
employees from four standpoints: selfcare, care provided
by Human Resources Department, care provided by onsite
occupational health professionals, and care utilizing outside
resources.
1. Selfcare
Mental health training (for all employees)
Stress checks to assess mental health (carried out
annually)Establishment of internal and external consultation
service
2. Care provided by Human Resources Department
Mental health training (training for newly appointed
managers and manager training, etc.)
Personnel interviews
3. C are provided by onsite occupational healthprofessionals
Health consultations provided by occupational healthphysicians
Mental and physical health consultations provided bypublic health nurses
Support for employees returning to work from leave
provided by personnel staff and introduction of aprovisional return-to-work system
4. Care utilizing outside resourcesReferral to outside consultation service, counselling
facility or specialist
●
●

●

●

●

●

●

●

●

Respect for Human Rights
Human rights policy

Sustainable procurement

Mochida Pharmaceutical Group has established anddisclosed a Basic Policy on Human Rights to further
strengthen initiatives to prevent and mitigate human rights
risks. We will work to protect and respect human rights
through the implementation of human rights due diligenceand the establishment of a remedy framework, in line with
the UN Guiding Principles on Business and Human Rights.

Sustainable procurement policy
We have established a Sustainable Procurement Policy, topromote fair procurement that is compliant with laws andregulations and addresses human rights and environmental

Basic policy on human rights
Mochida Pharmaceutical Group sets out in the Code of Conduct ofMochida Pharmaceutical Group and the Employee Behavior Standardsof Mochida Pharmaceutical Group that officers and employees will
respect human rights and will not engage in behavior such as unfair
discrimination, sexual harassment or power harassment. The Group’s
Sustainable Procurement Guidelines also clearly specify the consideration
for human rights that business partners are expected to demonstrate.
Recognizing that companies have a responsibility to pursue management
which respects the human rights of all human beings, we are committed
to implementing initiatives to promote respect for human rights in all ourbusiness activities and contributing to realization of a sustainable society.

Sustainable Procurement Policy
1. Equitable and Fair Transactions
We will select business partners based on an equitable and fairassessment from various perspectives including quality, delivery time,
capacity for stable supply, technical expertise, reliability and price. We
will build positive relationships of trust with business partners that are
based on mutual understanding and are aimed at supporting eachother’s sustainable development.
2. Compliance with Laws and Societal Norms
We will comply with the laws and regulations of each country, andconduct ourselves with high ethical standards and in accordance withsocially accepted norms.
3. Consideration for the Environment
We will endeavor to realize a sustainable society by integrating
consideration for environmental impact into our procurement activities.
4. Respecting Human Rights
We will strive to build a decent society by integrating respect forhuman rights into our procurement activities.

Mochida Pharmaceutical Group Integrated Report 2023

42

4 Society

considerations. Our business partners will be informed
about the Group policy and will be required to understandit and put it into practice. We will integrate sustainability
throughout our entire supply chain to prevent problems
from occurring which will cause disruption to business andhave a severe impact on society.
Sustainable procurement guidelines
We have established the Sustainability Procurement
Guidelines for the purpose of building fair and transparent
relationships with our business partners. We will distributethese Guidelines to our business partners and also assess
and analyze the status of sustainability initiatives atbusiness partners through a questionnaire aimed atverifying the status of initiatives to address sustainability
issues such as human rights and the environment.

Workplace Initiatives

rights and will not engage in behavior such as unfair
discrimination, sexual harassment or power harassment in
the Employee Behavior Standards. We work continuously
and assiduously to raise awareness about the preventionof harassment and other human rights issues, including
appointing persons in charge of raising awareness abouthuman rights in each division and providing all employeeswith training to raise awareness about human rights once ayear. In addition, every year, we issue a call to employees
and their families for slogans to raise awareness abouthuman rights, providing them with the opportunity to reflect
on human rights issues as something which concernsthem.
We are also implementing initiatives to increase job
satisfaction and become an even better place to work,
including conducting an employee survey to assess
employee engagement and use the findings in various
measures to strengthen engagement.

Mochida Pharmaceutical Group sets out rules such as that
officers and employees will respect each other’s human

Relationship with Society
Contributing to patients with ulcerative
colitisMochida Pharmaceutical and Eli Lilly Japan K.K. havelaunched a joint project “Promoting a society in which
patients can talk openly about living with ulcerative colitis.”
We hope that this project will raise awareness about“bowel urgency (sensation of an urgent need to have abowel movement)”, which is identified by patients withulcerative colitis as the symptom they would most like tohave resolved and prompts people to think about how they
can support ulcerative colitis patients.
We have made information about ulcerative colitis
and “bowel urgency” available on a dedicated website.
Dedicated website “For you who is living with Ulcerative
Colitis”
https://www.mochida.co.jp/withuc/

Information about diseases
Mochida Pharmaceutical provides a wide range
of information to increase patient understanding of illness.
We produce guides for patients explaining diseases andgiving them lifestyle tips, and we distribute them throughmedical institutions. We have also created information
pages about diseases on our website for patients and thegeneral public, highlighting in particular, through videos
and other means, information offering “support for thedifferent stages of a woman’s life.”

Information page about diseases
https://www.mochida.co.jp/patient/

Information about women’s health issues
https://www.mochida.co.jp/woman/

43

Mochida Pharmaceutical Group Integrated Report 2023

Hosting company visits
We host company visits by students to raise awarenessabout the social significance of pharmaceutical companies
and the relevance of pharmaceuticals to everyday life.
Senior high school and junior high school students who areinterested in careers in medicine or pharma visit us onschool excursions and are keen to listen to presentations
about the contribution that pharmaceutical companies
make to medical care and the development of new drugs.

Support for the Turkey-Syria Earthquake
In March 2023, Mochida Pharmaceutical donated 3 million
yen through the Japanese Red Cross Society to support

Company visits by students (Held in December 2022)

relief activities for those affected by the earthquake in
Turkey and Syria.

Relationship with Local Community
Gotemba site (Gotemba, Shizuoka Prefecture)
Participation in activities of Gotemba City Water Quality
Preservation Council
Every year in June, which is Environment Month, theGotemba site takes part in the cleaning activities organized
by Gotemba City Water Quality Preservation Council,
cleaning up the surrounding roads. The Gotemba site also
takes part in the “amago salmon release party” organizedby the Gotemba City Water Quality Preservation Council
every October.
Blood donation activities
Every year, the Gotemba site cooperates with the blood
donation event organized by the Japanese Red Cross
Society.
In FY2022, the blood donation campaign took placein September and February. At the Shizuoka Prefecture
Blood Donation Promotion Convention in 2022, theGotemba site received a letter of appreciation from the
Minister of Health, Labour and Welfare in recognition of its
steadfast cooperation with blood donations for many years.

Fujieda site (Fujieda, Shizuoka Prefecture)
Activities to clean up around Fujieda site and the banksof Oi River
Adjacent to the Oi River, which is officially classified as aClass 1 river, the Fujieda site takes part in Oi River Cleanup
Activities, including weeding and picking up litter on thebanks near the site, to coincide with Environment Month inJune and River Conservation Month in July.

Head Office Plant of MochidaPharmaceutical Plant Co., Ltd.
(Ohtawara, Tochigi Prefecture)

Communication with the local community to protect theenvironment
The Head Office Plant of Mochida Pharmaceutical Plant
Co., Ltd. sees communication with the local community asimportant for protecting the environment and reports any
changes in the water quality of rivers and groundwateraround the plant and the plant’s initiative to protect theenvironment to the local government (Ohtawara City) andto representatives of local residents. In FY2022, the plant
distributed hard copies of its reports.
Clean-up activities around the plant
Once a month, plant employees pick up litter around theplant, especially in the adjacent area and the area
bordering the city road, inspect plants and take measures
as necessary and maintain good communication with thelocal residents.
Hosting plant visits
The Head Office Plant welcomes students on visits to givethem an insight into the special feature of apharmaceuticals plant so that they can use this knowledge
when making career choices in the future.
Blood donation activities
Every year, the Head Office Plant cooperates with theblood donation event organized by the Japanese Red
Cross Society. In FY2022, the event was postponed toprevent the spread of the COVID-19 infection.

Blood donation activities
Every year, the Fujieda site cooperates with the blood
donation event organized by the Japanese Red Cross
Society.
In FY2022, the blood donation campaign took placein June.
Mochida Pharmaceutical Group Integrated Report 2023

44

5 Environment

Consideration for the Environment
Mochida Pharmaceutical Group has established a Basic Environmental Policy to promote business activities which takeenvironmental impact into consideration, in accordance with the Code of Conduct of Mochida Pharmaceutical Group andthe Basic Sustainability Policy.
Basic Environmental Policy
As a life and healthcare group, Mochida Pharmaceutical Group is committed to action on climate change
countermeasures, the effective use of resources, the protection of biodiversity and so on, develops business activities
with always taking the environmental impact into consideration, and endeavors to contribute to the realization of asustainable society.

Environmental Management
Mochida Pharmaceutical Group has established the Environmental Measures Committee, chaired by the officer in charge ofplanning and administration, as an organization which examines important matters related to the environment. The
Committee formulates a medium-to-long-term environmental action plan, examines measures to address environmental
issues, makes recommendations to management, promotes environmental activities at each business site and also verifies
the results of activities to protect the environment including annual reduction in CO2 emissions. The committee also
formulates a training schedule and conducts environmental training and awareness-raising activities for the further promotion
and integration of environmental activities.
The Head Office Plant of Mochida Pharmaceutical Plant Co., Ltd., which is the Mochida Pharmaceutical Group’s
production center, was awarded ISO 14001 certification by the International Standards Organization for its environmental
management system and implements activities to protect the environment on an ongoing basis.

[ Targets And Results ]FY2022
Environmental Policy
Target

FY2030 Target

16,690t-CO2 or less

16,685t-CO2

16,520t-CO2 or less

9,660t-CO2 or lessWaste generated

582 t or less

524t

582 t or less

582 t or lessWaste recycling ratio

98% or more

99.2%

98% or more

98% or more

Plastic waste recycling ratio

65% or more

78.4%

65% or more

65% or more

Reduction of CO2 emissions

Reduction andrecycling ofwaste

FY2023 Target
ResultSites covered: Head Office, Gotemba site, Fujieda site and every other business site of Mochida Pharmaceutical Co., Ltd., Head Office Plant of
Mochida Pharmaceutical Plant Co., Ltd., and Saitama Plant of Mochida Pharmaceutical Plant Co., Ltd.
However, rented buildings every other business site of Mochida Pharmaceutical Co., Ltd. are not included in the waste data.

ISO14001 renewal audit certificate

45

Mochida Pharmaceutical Group Integrated Report 2023

Waste training(Head Office Plant of Mochida Pharmaceutical Plant Co., Ltd.)Environmental Initiatives
Climate Change Countermeasures
Mochida Pharmaceutical Group has set a target of
reducing carbon emissions by 46% from FY2013 levels by
FY2030, and reaching carbon neutrality by 2050. We areworking to reduce CO2 emissions through initiatives suchas improvement of energy efficiency across MochidaPharmaceutical Group as a whole, to fulfill our social
responsibility and help realize a carbon-free society. In
FY2022, we continued our efforts to replace ourcommercial fleet with hybrid vehicles and installed more
efficient air conditioning systems at all sites. Meanwhile, the
new headquarters building (which began operating out
from September 2022) received a top-level BELS 5-starrating in the “Building-Housing Energy-efficiency Labeling
System (BELS)” evaluation and was certified as “ZEB

Ready” which means thebuilding achieves energy
savings of greater than
50%, thanks to an
environmentally friendly
design which uses site
conditions to reduce theenvironmental impact of air
conditioning and deploys
energy efficient lighting andair-conditioning systems.
Additionally, we are working
to reduce CO2 emissions
through the adoption of CO2
free electricity.

[ Trend of CO2 Emissions ]

[ Trend of Energy Consumption ]

17,900(tons)

18,731
17,592375

16,694

16,887

16,685CO2-free electricity purchasecertificate(terajoules)

362

354

359

353

FY2019FY2020

FY2021

FY2022-46%
reduction
9,660

0FY2013 FY2018(Base year)

FY2019FY2020

FY2021

FY2022

FY2030(Target)

FY2050(Target)

FY2018Sites covered: H ead Office, Gotemba site, Fujieda site and every
other business site of Mochida PharmaceuticalCo., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant
of Mochida Pharmaceutical Plant Co., Ltd.
CO2 emissions: Total amount of energy-related CO2 emissions
from fuel and electricity consumption

Sites covered: H ead Office, Gotemba site, Fujieda site and every
other business site of Mochida PharmaceuticalCo., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant
of Mochida Pharmaceutical Plant Co., Ltd.
Energy consumption: Total consumption of all types of energy
including electricity, fuel oil (until FY2019),
gasoline, LNG and city gas

Gas-fired once-through boilers(Head Office Plant of Mochida Pharmaceutical Plant Co., Ltd.)Heat pumps(Head Office Plant of Mochida Pharmaceutical Plant Co., Ltd.)

Mochida Pharmaceutical Group Integrated Report 2023

46

5 Environment

Reduction and recycling of waste

Water resources and water quality

Mochida Pharmaceutical Group is working on the reduction
and recycling of waste generated in its business activities.
We promote the 3Rs (Reduce, Reuse, Recycle) and arecommitted to reducing the amount of waste we generate
to 582 tons or lower by FY2030, increasing our waste
recycling rate to 98% or higher, and maintaining a plastic
waste recycling rate of 65% or higher.

Mochida Pharmaceutical Group strives to comply with laws
and regulations and water standards agreed with each
local government and is working to use water resources
efficiently and to manage wastewater properly. In addition,
Mochida Pharmaceutical Plant Co., Ltd. has completely
replaced the below ground drainage system with an above
ground drainage system at its Head Office Plant to prevent
soil contamination due to leakages.

[ Trends of Amount of Waste Generated and Recycling Rate ](tons)[ Trends of Water Consumption and Amount of Wastewater ](thousand m3)

99.1%

99.2%

99.5%

99.3%

99.2%

382
354

508 504

502 498

FY2018FY2019Total amount generated

328

341

354
322

323

FY2020

FY2021

348
310

524 520463 461464 461

FY2020

FY2021

Recycling amountFY2022
Recycling rate

Sites covered: H ead Office, Gotemba site, Fujieda site and every
other business site of Mochida PharmaceuticalCo., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant
of Mochida Pharmaceutical Plant Co., Ltd.*
Recycling amount: T otal amount of waste generated which was
the subject of reuse, material recycling or
thermal recycling (heat recovery and residue
use)

Prevention of air pollution
In efforts to prevent air pollution, Mochida Pharmaceutical
Group completed the switch from fuel oil to LNG and city
gas in FY2019. This move reduced the Group’s particulatematter, oxides of nitrogen and sulfur (NOx and SOx)emissions to zero. We will continue striving to comply withlaws and regulations and the standards agreed with each
local government.

Proper management of chemical substances
The Gotemba and Fujieda sites, the Head Office Plant of
Mochida Pharmaceutical Plant Co., Ltd., and the Saitama
Plant of Mochida Pharmaceutical Plant Co., Ltd. fullyrecognize the impact that the chemical substances needed
to develop and manufacture pharmaceuticals andhealthcare products have on human health and theecosystem, and they use and manage chemical
substances properly.

47

347

Mochida Pharmaceutical Group Integrated Report 2023

FY2018FY2019Water consumption

FY2022

Amount of wastewater

Sites covered: H ead Office, Gotemba site, Fujieda site and every
other business site of Mochida PharmaceuticalCo., Ltd., Head Office Plant of MochidaPharmaceutical Plant Co., Ltd., and Saitama Plant
of Mochida Pharmaceutical Plant Co., Ltd.*
Water consumption: Total of extraction of groundwater and water
purchased from public water supply*The data for FY2020 and FY2021 excludes data from Mochida Pharmaceutical Co.,
Ltd.’s headquarters, which was temporarily relocated.
The data for FY2022 includes some data from Mochida Pharmaceutical Co., Ltd.’sheadquarters (beginning operating out of the new office building from September 2022).

Activities to revitalize forests
From 2013, to commemorate the 100th anniversary of its
founding, Mochida Pharmaceutical Group has been joining
a partner program implemented by Kanagawa Prefecture
to revitalize forests. Under the program, we lease an areaof forest in Kanagawa Prefecture, which we named
Mochida Memorial Forest, and employees volunteer to takepart in activities to develop the forest such as tree thinning,pruning and clearing underbrush. We will continue focusing
on the revitalization of forests and are committed to passing
on the blessings of the forest to the next generation.

Information Disclosure Based on the TCFD
Recommendation
Mochida Pharmaceutical Group declared support for the
Task Force on Climate-related Financial Disclosures (TCFD)
Recommendations in June 2023, and evaluates andmanages climate-related risks and opportunities to makedisclosures in accordance with the TCFD
recommendations. Going forward, we will seek to further
enhance information disclosure.

GovernanceRisk management

Mochida Pharmaceutical Group has established theEnvironmental Measures Committee (convened twice ayear) as an organization which examines important mattersrelated to the environment. The Committee is responsible
mainly for establishing medium-to-long-term environmental
action plans and considering measures to addressenvironmental issues. We have also established the Risk
Management Committee (convened twice a year), whichdevelops systems for managing major risks related to theGroup’s business operations in general, including climatechange risk.
In collaboration with the Environmental Measures
Committee and the Risk Management Committee,
initiatives to address climate change are considered atmeetings of the Sustainability Committee, which wasestablished to promote sustainability activities across theGroup. The Sustainability Committee meets once every six
months (and whenever necessary).
The activities of these committees are reported toand discussed with a view to improvement at the Board of
Directors at least once a year.

We have established Risk Management Rules applicable to
Mochida Pharmaceutical Group, and have also developed
a framework for managing risks related to MochidaPharmaceutical Group’s business management in generaland manage climate change as one of our key risks. The
business units and companies responsible for each majorrisk have developed measures to prevent thematerialization of the risks and measures to be taken in theevent of materialization and, as the committee responsible
for risk management, the Risk Management Committee
deliberates on and supervises the measures. These
activities are reported to the Board of Directors anddiscussed with a view to improvement at least once a year.

Metrics and targets
Mochida Pharmaceutical Group has set a target of
reducing carbon emissions by 46% from FY2013 levels by
FY2030, and reaching carbon neutrality by 2050.

Strategy
Going forward, we will carry out an assessment of the
impact of climate-related risks and profit-earning
opportunities arising from global warming on our businessactivities and earnings, implement long-term andsustainable initiatives, and promote the disclosure of
information about such initiatives.

Mochida Pharmaceutical Group Integrated Report 2023

48

6 Corporate Information

10-Year Consolidated Financial Summary
FY2013

FY2014FY2015FY2016

Net sales  93,947  87,252   92,272  97,349

Cost of sales  34,364  33,913   37,273  41,043

Selling, general and administrative expenses  42,987  41,658   42,845  44,936  11,961  11,777   13,454  15,226

Operating income  16,600  11,689   12,154  11,374

Recurring income  16,799  11,909   12,392  11,648

Profit attributable to owners of parent   9,892   7,544    8,150   8,526

Comprehensive income  11,514   8,860    9,121   9,686

Net cash provided by (used in) operating activities  12,478   5,122   15,211   5,583

Net cash provided by (used in) investing activities△ 4,359△ 1,953△ 15,576△ 1,835

Net cash provided by (used in) financing activities△ 6,089△ 5,288  △ 2,917△ 3,291

Capital investment   2,598   1,272    1,539   1,060

Depreciation and amortization   2,741   3,006    2,764   2,734

Cash and cash equivalents at end of year  35,753  33,635   30,351  30,808

130,669

127,557  137,713

148,372

93,68898,670  104,929

111,869

Net assets (BPS)

2,332.58

2,484.20

2,642.32

2,817.36

Net income (EPS)  244.33  188.63   205.23  214.73

Dividends   80.00   75.00    75.00   77.50

Ratio of operating income to net sales (%)    17.7    13.4     13.2    11.7

Ratio of R&D expenditures to net sales (%)    12.7    13.5     14.6    15.6

Shareholders' equity ratio (%)    71.7    77.4     76.2    75.4

Return on equity (ROE) (%)    10.9     7.8      8.0     7.9

Payout ratio (%)    32.7    39.8     36.5    36.1

Price to earnings ratio (PER) (times)    15.1    20.9     20.4    19.2   1,726
    
（402）

   1,746
    
（417）

    1,726
     
（420）

    1,713
    
（418）

For the fiscal year (Millions of Yen)

R&D expenditures

End of the fiscal year (Millions of Yen)
Total assets
Net assets
Per- Share Information* (Yen)1

Financial Indicators

Number of employees(Average number of part - time employees)

49

Mochida Pharmaceutical Group Integrated Report 2023

FY2017*2

FY2018FY2019FY2020

FY2021

FY2022

106,761

109,643

101,799

102,995

110,179

103,261  53,182  55,477  49,882  48,203  50,626  48,146  41,904  43,584  43,112  42,788  45,161  46,607  11,912  13,003  11,884  10,849  12,295  13,283  11,662  10,590   8,807  12,003  14,392   8,507  12,008  10,928   9,154  12,260  14,799   9,085   9,023   8,435   4,598   8,587  10,569   6,649  11,257  11,467    873  11,412   7,619   5,001   3,283  12,565   9,347   9,198   7,459   7,297   △ 426△ 1,121△ 1,760   △ 880△ 2,007△ 2,949△ 3,483△ 6,094△ 5,328△ 5,112△ 5,956△ 6,884   1,001   1,299   1,889   1,335   2,806   2,105   2,618   2,917   2,731   2,742   2,689   2,672  30,182  35,532  37,791  40,987  40,515  38,010

155,047

159,019

157,488

161,791

163,139

158,831

119,687

125,110

120,665

126,974

128,646

126,775

3,014.53

3,189.15

3,113.69

3,317.92

3,424.21

3,470.18  227.27  212.87  117.56  222.29  277.39  178.93   85.00   85.00   80.00   90.00   90.00   80.00    10.9     9.7     8.7    11.7    13.1     8.2    11.2    11.9    11.7    10.5    11.2    12.9    77.2    78.7    76.6    78.5    78.9    79.8     7.8     6.9     3.7     6.9     8.3     5.2    37.4    39.9    68.1    40.5    32.4    44.7    16.5    26.7    35.5    19.3    13.5    18.7   1,666
    
（420）

   1,617
    
（448）

   1,581    (482)   1,558    (504)   1,544    (503)   1,529    (515)*1 T he Company conducted the consolidation of shares of its common shares at a rate of one share for every five shares on October 1, 2013. The Company also conducted a two - for- one
share split of its common shares on April 1, 2019. Per- share information is calculated on the assumption that the share consolidation and share split were conducted on April 1, 2013.
*2 F rom April 1, 2018, our company has applied the "Partial Amendments to Accounting Standards for Tax Effect Accounting" (ASBJ Statement No. 28, February 16, 2018). The relevant
accounting standards have been applied retroactively to the main management indicators for fiscal 2017.

Mochida Pharmaceutical Group Integrated Report 2023

50

6 Corporate Information

Consolidated Financial Statements
Consolidated Balance Sheets(Millions of yen)

FY2021(Millions of yen)

FY2021

FY2022
Liabilities

AssetsCurrent liabilities

Current assets
Cash and time deposits

48,41547,010Notes and accounts payable

10,656

9,047

Accounts receivable

31,67627,806

Marketable securities

13,499

Electronically recorded obligations operating

1,243

13,499910

Merchandise and finished goods

15,11014,644

Income taxes payable

1,652

501

Work in process

1,355

1,453

Raw materials and supplies

6,662

8,307

Other current assets

4,727

4,656

Total current assets

121,448

117,379

Fixed assets
Buildings and other structures, net

4,769

7,069

Machinery and equipment andtransportation equipment, net

1,759

1,854

Land

4,990

4,990

Others, net

3,009

1,135

Total property, plant and equipment

14,52815,049713

797

Intangible fixed assets

Contract liabilities
Provision for bonuses
Other provisions

―

50

2,663

2,313

171

169

Other current liabilities

13,47014,266

Total current liabilities

29,85627,258Retirement benefits liability

4,270

4,133

Other long-term liabilities

365

664

Long-term liabilities

Property, plant and equipment

Total long-term liabilities
Total liabilities

4,636

4,798

34,49332,056

7,229

7,229

Net assets
Shareholders’ equity
Paid-in capital

Investments and other assets
Investments in securities

16,474

14,246

Capital surplus

1,871

1,871

Deferred income taxes

3,691

3,883

Retained earnings

121,668

118,943

Others

6,283

7,476

Treasury shares△9,617△7,114

Total investments and other assets

26,44925,605

Total shareholders’ equity

121,153

120,930

Unrealized gain on available-for-salesecurities

7,308

5,655

Remeasurements of defined benefit
plans

184

189

7,493

5,844

128,646

126,775

163,139

158,831

Total fixed assets
Total assets

41,691

41,452

163,139

158,831

Accumulated other comprehensive
incomeTotal accumulated othercomprehensive income
Total net assets
Total liabilities and net assets

51

FY2022(As of March 31, 2022) (As of March 31, 2023)(As of March 31, 2022) (As of March 31, 2023)

Mochida Pharmaceutical Group Integrated Report 2023

Consolidated Statements of Income andComprehensive Income Consolidated
Statements of Income

Consolidated Statements of Comprehensive
Income(Millions of yen)

FY2021(Millions of yen)

FY2022(From April 1, 2021
to March 31, 2022)(From April 1, 2022
to March 31, 2023)

Net sales

110,179

103,261

Cost of sales

50,62648,146Gross profit

59,553

55,114

Selling, general and administrative
expenses

45,161

46,607

Operating income

14,392

8,507

Other income
Interest income      2

2

Dividend income    284

338

Real estate rent     82

86

Gain on forgiveness of debts      6165

Others     79

73

Total other income    455665―

0     43

45―

36

FY2021

FY2022(From April 1, 2021
to March 31, 2022)(From April 1, 2022
to March 31, 2023)

10,5696,649

 nrealized gain on available-for-saleUsecurities

△ 3,002△ 1,653 emeasurements of defined benefitRplans, net of tax

53

5△ 2,949△ 1,648

Total comprehensive income

7,619

5,001

Total comprehensive income attributable to:
Owners of parent 

7,619

5,001

Net income
Other comprehensive income,net of tax

 otal other comprehensive income, netTof taxOther expenses
Interest expenses
Interest and charge (commission)
expense
Foreign exchange losses
Others      5

6

Total other expenses     48

87

Recurring income

14,799

9,085

―

0

Extraordinary gains
Gain on sales of fixed assets―

8Gain on sales of investment securities    526―

Insurance claim income     38

4

Total extraordinary gains    56413

Loss on sales and disposal of fixed
assets      554

Impairment losses    107―

Loss on disaster     22―

Removal expenses for fixed assets    535―

Settlement expenses    100―

Total extraordinary losses    771

54

Settlement received

Extraordinary losses

Income before income taxes

14,591

9,044

Income taxes - current  3,215

2,014

Income taxes - deferred    807380

Total income taxes  4,0222,395

Net income

10,569

6,649

Profit attributable to owners of parent  10,569

6,649

Mochida Pharmaceutical Group Integrated Report 2023

52

6 Corporate Information

Consolidated Statements of Changes in Net Assets
FY2021 (From April 1, 2021 to March 31, 2022)

(Millions of yen)

Accumulated other comprehensive
incomeShareholders’ equity

Balance at beginning ofyear

Paid-in
capitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity

7,229

1,871

116,288△8,857

116,532

Total
Unrealized gain
Remeasurements accumulated
on availableotherof defined benefit
for-salecomprehensive
plans
securities
income10,311

131

10,442

Total net
assets

126,974

Changes in the fiscal year:
Dividends from surplus△3,444△3,444△3,444

Profit attributable to ownersof parent

10,56910,56910,569△2,504△2,504△2,504

1,744

―

―

Purchase of treasury shares
Cancellation of treasury
shares△0△1,744

Net changes of items otherthan shareholders’ equity
Total
Balance at end of year

△3,00253△2,949

―

△0

5,380

△759

4,620

△3,00253△2,949

1,671

7,229

1,871

121,668△9,617

121,153

7,308

184

7,493

128,646

FY2022 (From April 1, 2022 to March 31, 2023)

(Millions of yen)

Accumulated other comprehensive
incomeShareholders’ equity

Balance at beginning ofyear△2,949Paid-in
capitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity

7,229

1,871

121,668△9,617

121,153

Total
Unrealized gain
Remeasurements accumulated
on availableotherof defined benefit
for-salecomprehensive
plans
securities
income
7,308

184

7,493

Total net
assets128,646

Changes in the fiscal year:
Dividends from surplus△3,370△3,370△3,370

6,649

6,649

6,649

△3,502△3,502△3,502

6,004

―

―

Profit attributable to ownersof parent
Purchase of treasury shares
Cancellation of treasury
shares△6,004

Net changes of items otherthan shareholders’ equity
Total
Balance at end of year53

△1,653

5△1,648△1,648――△2,725

2,502

△223

△1,653

5△1,648△1,871

7,229

1,871

118,943△7,114

120,930

5,655

189

5,844

126,775

Mochida Pharmaceutical Group Integrated Report 2023

Consolidated Statements of Cash Flows(Millions of yen)

FY2021(From April 1, 2021
to March 31, 2022)(Millions of yen)

FY2022

FY2021(From April 1, 2022
to March 31, 2023)

Cash flows from operating activities:

FY2022(From April 1, 2021
to March 31, 2022)(From April 1, 2022
to March 31, 2023)△10,900△12,000

Cash flows from investing activities:

Income before income taxes

14,591

9,044

Payments into time deposits

Depreciation and amortization

2,689

2,672

Proceeds from withdrawal of time
deposits

16,50010,900Loss (gain) on sales of investment
securities

△526

―

△10,500△10,500

Gain on forgiveness of debts

△6

△165

Purchase of short-term investment
securities

Insurance claim income

△38

△4

Proceeds from sales of short-term
investment securities

6,000

10,500553△2,988△2,166

Impairment losses

107

―

0

22

―

Proceeds from sales of property, plantand equipment

0

Loss on disaster
Removal expenses for fixed assets

535―

Payment for removal of fixed assets

△108

―

Settlement expenses

100―

Proceeds from sales of investment
securities

538―

Increase (decrease) in provision forbonuses166△349

Purchase of investment securities

△540

―

Increase (decrease) in retirement benefits
liability 

△305

△129

Interest and dividend income

△287

△340

Interest and charge (commission)
expense43

45

Decrease (increase) in notes andaccounts receivable-trade△2,486

3,869

Decrease (increase) in inventories△521△1,277

Decrease (increase) in other current assets 

△899

817

Increase (decrease) in notes andaccounts payable-trade

2,176△1,941

Increase (decrease) in other current
liabilities

△1,658

1,183

Other

△783

△2,304

Subtotal

12,925

11,173

Interest and dividends received

286

340

Interest and commission paid

△36

△35

―

42

△100

―

Payments for contract loss

△2,000△1,000

Income taxes paid

△3,616△3,224

7,459

7,297

Loss (gain) on sale and disposal of
fixed assets

Proceeds from insurance income
Settlement paid

Net cash provided by operating activities Payment for purchases of tangible andintangible fixed assets

△8

316

△2,007△2,949Dividends paid

△3,445△3,372

Purchase of treasury shares△2,511△3,512△0△0△5,956△6,88431

32

Net increase (decrease) in cash and cash
equivalents △472△2,504

Cash and cash equivalents at
beginning of year

40,98740,515

Cash and cash equivalents at end ofyear

40,51538,010Other
Net cash used in investing activities 
Cash flows from financing activities:

Other
Net cash used in financing activities 
Effect of exchange rate changes on cash
and cash equivalents

Mochida Pharmaceutical Group Integrated Report 2023

54

6 Corporate Information

Corporate Data (As of June 29, 2023)
Mochida Pharmaceutical Co., Ltd.

Sites and Research Laboratories

Founded: April 16, 1913
Incorporated: April 28, 1945
Representative: Naoyuki Mochida, President
Main Business: S ale, import and export ofpharmaceuticals, etc.
Paid-in Capital: ¥7,229 million
Head Office: 7, Yotsuya 1-chome, Shinjuku-ku, Tokyo
160-8515, Japan
TEL +81-3-3358-7211
Number of Employees: 1,252 (Consolidated: 1,529)

Branche Offices
Sapporo, Sendai, Kanto Koshinetsu, Metropolitan,
Chubu, Kansai, Hiroshima, Fukuoka
Other Operating Sites
Asahikawa, Hakodate, Aomori, Morioka, Akita, Koriyama,
Kawagoe, Takasaki, Utsunomiya, Mito, Tsuchiura, Niigata,
Matsumoto, Kofu, Tama, Chiba, Matsudo, Yokohama,
Atsugi, Shizuoka, Hamamatsu, Hokuriku, Kyoto,
Osaka-kita, Sakai, Kobe, Yonago, Okayama, Yamaguchi,
Takamatsu, Matsuyama, Tokushima, Kochi, Kitakyushu,
Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima,
Okinawa
Research Laboratories
Research Center (Gotemba), Pharmaceutical Laboratory(Fujieda)■ Mochida headquarters building

55

Mochida Pharmaceutical Group Integrated Report 2023

Share Information (As of March 31, 2023)
Current Share Status

Distribution by Type of Shareholder

Total number of authorized share
120,000,000 shares
Total number of shares issued and outstanding
38,500,000 shares
Number of shareholders
6,807Japanese financial
institutions

Japanese individual
investors and others

21.48 %

34.15%

Japanese securities
companies

0.58%
Treasury stock

5.11%

Major Shareholders (top 10)

Name of Shareholder

Mochida Memorial Foundation for Medical
and Pharmaceutical Research
The Master Trust Bank of Japan, Ltd. (Trustaccount)
MUFG Bank, Ltd.
Princess Takamatsu Cancer Research Fund
Mizuho Trust & Banking Co., Ltd., Retirement
Benefit Trust (Mizuho Bank Account)
Re-trust Trustee: Custody Bank of Japan, Ltd.
Nissui Corporation
Naoyuki Mochida
Takeshi Mochida
Kazue Mochida
Yutaka Mochida

Other Japanese
corporations

Foreign entities

Number of
Shares Held

Percentageof Shares
Held(thousand)(excluding
treasury shares)

5,688

15.57

30.02%

8.66 %

Distribution by Number of Shares Held
1 trading unit or more

4.53%

Less than 1 trading unit

3,055

8.36

1,786
1,683

4.89
4.61

1,614

4.42

5.11%

1,200
1,141
949
937
886

3.28
3.13
2.60
2.57
2.43

1,000 trading
units or more

5,011 shareholders

0.07 %

674 shareholders
Treasury stock
1 shareholder

10 trading
units or more

5.86%

995 shareholders
100 trading
units or more

7.68%

84 shareholders

76.75%

42 shareholders(Note) The Company holds 1,967 thousand shares of treasury stock, not included in the above.

Group Companies
Mochida Pharmaceutical Plant Co., Ltd.

Mochida Healthcare Co., Ltd.

Operations Commenced: April 1, 2005
Representative: Tadashi Morikawa, President
Main Business: Manufacture of pharmaceuticals andhealthcare products
Paid-in Capital: ¥500 million (wholly owned by MochidaPharmaceutical)
Head Office Plant: 431, Nakadawara, Ohtawara City, Tochigi
324-0062, Japan
TEL +81-287-24-1111
Sites: Saitama Plant/Tokyo Site

Operations Commenced: April 1, 2004
Representative: Shinji Akita, President
Main Business: Sale of healthcare products
Paid-in Capital: ¥ 100 million (wholly owned by MochidaPharmaceutical)
Head Office: PAXXS Bldg., 2-12 Ichigayahonmuracho,
Shinjuku-ku, Tokyo 162-8451, Japan
TEL +81-3-5229-3940
Sites: Sapporo Sales Office, Sendai Sales Office, Higashi
Nihon Branch Office, Yokohama Sales Office, Nagoya
Sales Office, Nishi Nihon Branch Office, Hiroshima
Sales Office, Fukuoka Sales Office, Saitama Plant

Mochida Pharmaceutical Sales Co., Ltd.
Operations Commenced: June 2, 2014
Representative: Kazumasa Fukuchi, President
Main Business: Sale of pharmaceuticals
Paid-in Capital: ¥10 million (wholly owned by MochidaPharmaceutical)
Head Office: P AXXS Bldg., 2-12 Ichigayahonmuracho,
Shinjuku-ku, Tokyo 162-8451, Japan
TEL +81-3-5229-3929

Technonet Co., Ltd.
Head Office: 7, Yotsuya 1-chome, Shinjuku-ku, Tokyo 1608515, Japan
TEL +81-3-3353-7511

Technofine Co., Ltd.
Head Office: 342, Gensuke, Fujieda, Shizuoka 426-8640,
Japan
TEL +81-54-636-7032

Mochida Pharmaceutical Group Integrated Report 2023

56

6 Corporate Information

Our History
1900
1913

Mochida was established by Ryokichi
Mochida in Hongo, Bunkyo-ku, Tokyo.
Started producing pharmaceuticals.

1979

Launched Rocornal, a circulatory
function activator.

1980

Launched Collage Cream, the first basic skin careproduct containing soluble collagen developedin Japan.

Started producing and marketing Ogoko, an ophthalmic
ointment.

Launched Medilaser-S, the first carbon
dioxide laser surgical unit produced
in Japan.

Started producing and marketing Luestin, an injectable
antiluetic.

1929

Developed Thrombrin, Japan’s firstorgan-derived hemostatic agent.

1932

Completed and launched Pelanin, the first
estrogen preparation developed in Japan.

1935

Launched Testinon, a male hormone preparation.

1945

Mochida Pharmaceutical Co., Ltd. was incorporated.

1951

Launched Sprase, the first hyaluronidase
preparation developed in Japan.

1952

Launched Estropan, a complex natural female functional
hormone.

1956

Succeeded in producing Thrombin, a hemostatic enzyme, inJapan.

1960

Launched Partan, a hemostatic drugthat contributes to uterine contraction.

1963

Listed on the Second Section of theTokyo Stock Exchange (TSE).

1964

Nobuo Mochida was appointed president.

1981

Signed an agreement with Hayashibara
Biochemical Laboratory, Inc. for joint researchof interferon.

1982

Completed and opened the Fuji Central ResearchLaboratory (Gotemba).

1983

Established the Mochida Memorial Foundation for Medical
and Pharmaceutical Research.

1984

Launched Arasena-A, a treatment for viral encephalitis.
Their Imperial Highnesses Prince and Princess Takamatsu
visited Fuji Central Research Laboratory.

1985

Launched Miraclid, the world’s
first ulinastatin preparation.

1986

1988

Took part in “Life” Theme Pavilion at Japan
World Exposition and exhibited DNA structure model.
Established the Paramedical Division and entered thequasi-drugs business.

Launched Isoprinosine®, a chemotherapeutic agent.

1975

Launched Tecipul, a tetracyclic antidepressant.

1990

Susumu Watanabe appointed president.
Launched Epadel Capsule 300, the world’s
first high-purity EPA preparation.
Completed Ohtawara Plant.

Launched Skina Babe, baby bath oil.

1992

Launched Arasena-A Ointment, the first
topical antiviral agent developed in Japan.

Established the Medical Electronics
and Equipment Division.

1996

Commenced JELIS (EBM study for Epadel).

Completed and started operating
the Shizuoka Plant.

1997

Launched Atelec®, a calcium channel
blocker.

Launched Neutrogena, soap for sensitive skin.

1999

Naoyuki Mochida appointed president.

Completed and started operating the Saitama Plant.
Listed on the First Section of the TSE.

57

1989

1991

Launched Uronase, a fibrinolytic enzyme preparation.

1972

Launched the Collage Soap series of
low-irritating soap formulated for each specific skin type.
Launched natural-type interferon preparations
IFN α MOCHIDA 500 and IFN β MOCHIDA.

Launched Kimotab, an anti-inflammatory
enzyme preparation.
Launched Gonavislide, a pregnancy test kit.

Launched Florid®-F injection for thetreatment of deep-seated mycoses.
Launched Grandaxin, an autonomic
nerve regulator.

Launched Gonavis, Japan’s first
immunological pregnancy test kit.

1970

Ei Mochida was appointed president.

1976

Completed and relocated to the new headquarters buildingin Yotsuya.

1977

Launched, SONOVISTA, the firstultrasonic diagnostic scanner
developed in Japan.

Mochida Pharmaceutical Group Integrated Report 2023

Launched EPA preparations Epadel S 300 and 600.
Launched low-dose oral contraceptives Ortho 777-28 andOrtho M-21.
Launched Collage Furfur, the first shampoo
containing antimycotic ingredients developedin Japan.

2000
2001
2002

Launched Gonastick 25, a pregnancy test kit.

2013

Launched Arasena-A Cream, an antiviral agent.

Launched a switch-OTC versionof Epadel.

Obtained the certification of ISO 14001 for Ohtawara Plant.

Launched the Collage B.K.AGE
series.

Launched the Vitacollage series of health supplements.

Launched biosimilar Filgrastim
BS MOCHIDA.

Launched Spurecur ®, a GnRH derivative preparation.

2003

Launched Tramcet® tablets, an analgesic.
Launched Liquid Thrombin Mochida
Soft Bottle, a hemostatic agent.

2014

Launched the Collage S seriesof basic skin products.

Mochida Pharmaceutical Sales Co., Ltd.
commenced operations.

Mochida Medical Systems Co., Ltd. commenced
operations.

2004

Mochida Medical Systems Co., Ltd.
commenced operations as Mochida Siemens Medical
Systems Co., Ltd.
(Excluded from affiliated companies accounted for by theequity method in 2009.)

2005

Renewed and relaunched the Collage
Skincare series.

Mochida Healthcare Co., Ltd. commenced
operations.
Launched Epadel S 900, a stick-type
EPA preparation.

Mochida Pharmaceutical Plant Co., Ltd. commenced
operations.

Launched Atedio® tablets for treatmentof hypertension.

Launched Treprost ®, a therapeutic
agent for pulmonary arterial
hypertension.

2016

Launched Lialda®, a treatment
for ulcerative colitis.

2017

Launched Calprotectin MOCHIDA,
an in-vitro diagnostic agent for
ulcerative colitis.

2018

Launched Doxil®, an anticancer agent.

Launched the Collage Whitening series, the first whitening
skincare products for sensitive skin developed in Japan.

Launched Goofice®, a treatment
for chronic constipation.

Results of JELIS (EBM study for Epadel ) announced byAmerican Heart Association (AHA).

Launched biosimilar Etanercept
BS MA.

2006

Launched Collage Furfur Liquid Soap.

Launched Collage Furfur
Premium Shampoo.

2007

Commenced co-promotion of Diovan®,an antihypertensive.
(Agreement terminated end of 2008.)
Launched Beselna, the first treatment for condyloma
acuminatum developed in Japan.

2008

Launched Dinagest, a treatment
for endometriosis.

Launched Movicol ®, a treatment
for chronic constipation.

2019

Launched biosimilar Teriparatide BS
MOCHIDA.

2020

Launched Collage White Peel, an enzyme powder facewash.
Launched Divigel ® transdermal estrogen gel.

2009

Launched Gonastick W,
a pregnancy test kit.
Launched Collage Furfur
Next Shampoo and Rinse whichcontain antimycotic ingredients.

2011

Launched Lexapro®,an anti-depressant.

2012

Launched Fastic®, a fast-acting postprandial
antihyperglycemic agent.
Launched glucoriina, a food for specified health uses
(FOSHU).

Launched the Collage Repair series.

Launched Gonacard W,
a pregnancy test kit.
Launched Urece®, a treatmentof gout and hyperuricemia.

2021

Launched biosimilar
Adalimumab BS MA.

2022

Shifted to the TSE Prime Market.
Launched Epadel EM,
a self-emulsifying formulation ofhighly purified EPA.
Completed and started operating
at the new headquarters buildingin Yotsuya.

2023

Launched Omvoh ® and Cortiment ®,a treatment for ulcerative colitis.

Mochida Pharmaceutical Group Integrated Report 2023

58

https://www.mochida.co.jp

2023.10