Mochida Pharmaceutical Group

Integrated Report

2021

CONTENTS

By meeting medical and healthcare needs,
we aim to make an even greater contribution

1

03 Basic Management Policies

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.

Value Creation Story

3

23 Basic Policy on Corporate Governance

03 Motto and Corporate Philosophy

25 Business Risks

04 Long - term Vision

26 Compliance

04 Medium - term Management Plan

27 Officers

05 Code of Conduct
06 Corporate development
07 Value Creation Process
09 Consolidated Financial Highlights

4

Motto

29 Consideration for the Environment
29 Environmental Management

Indicators

29 Environmental Initiatives

11 Interview with the President
2

Business Activities

31 Environment Action Plan
32 Society
32 Relationship with Employees
33 Relationship with Society

15 Pharmaceutical Business

34 Relationship with Local Community

15	Research & Development and Licensing

Corporate Philosophy

Activities
17 Production

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

Environment and Society

29 Environment09	Changes in Major Consolidated Management

Farsighted, Innovative Research

Corporate Governance

18 Quality Control and Safety Management
18 Sales and Information Provision Activities
21 Healthcare Business5

Corporate Data

35 Consolidated Financial Statements
37 Share Information
38 Corporate Data
39 Our History

to the development of innovative products.
Editorial Policy

To increase stakeholders’ understanding of the Mochida Pharmaceutical Group, we have published this report as an integrated
report integrating non-financial information, such as our value creation story, business activities and ESG information, and financial
information. When preparing this report, we referred to the International Integrated Reporting Framework advocated by theInternational Integrated Reporting Council (IIRC).

Organizations covered
Mochida Pharmaceutical Group (Mochida Pharmaceutical Co., Ltd. and its consolidated subsidiaries)

Period covered
Centered on activities from April 1, 2020 through March 31, 2021, but also refers to more recent news

Published:
September 2021

Cautionary Note
This integrated report contains statements that constitute forward-looking statements. These statements are based on
management’s current assumptions and beliefs in light of the information currently available to it and involve known and unknown
risks and uncertainties.
Actual results may differ materially from those in the forward-looking statements as a result of various factors. Information aboutpharmaceutical products (including products currently in development) which is included in this integrated report is not intended toconstitute an advertisement or medical advice.
This material is an English translation of the integrated report issued on September 27, 2021 in Japanese, and the Japaneseversion is given priority regarding content and interpretation.

Mochida Pharmaceutical Group Integrated Report 2021

Mochida Pharmaceutical Group Integrated Report 2021

1 Value Creation Story

Basic Management Policies
Motto and Corporate Philosophy
Mochida Pharmaceutical Group has adopted “farsighted, innovative research” as its motto. Meanwhile, our corporate
philosophy “Actively contributing to human health and well-being in the field of medicine, totally committed to thedevelopment of innovative products” is our universal mission. We believe that our raison d’être is to create and provide
valuable products to patients and customers by capturing potential medical and healthcare needs to help people
suffering from illness or health problems.

Long-term Vision
Mochida Pharmaceutical Group’s long-term vision is to “Grow as a unique life and healthcare group whose raisond’être is recognized internationally and which meets medical and healthcare needs.”

Medium-term Management Plan
Mochida Pharmaceutical Group formulates a three-year management plan, reflecting changes in the businessenvironment and incorporating a new fiscal year into the plan every fiscal year, to enhance its corporate value as a lifeand healthcare group.

Medium-term Management Plan
Policy for the fiscal years 2021 through 2023

Raison D’être

Motto

Corporate
Philosophy

Medium- andLong-term Aspirations

Long-term
VisionMedium-termManagement Plan

Fundamental
Approach

The business environment over the three years from FY2021 to FY2023 is forecast to be even more challenging, given
the National Health Insurance (NHI) price revision in October 2019 and April 2020 followed by the first and unusual
off-year revision in April 2021 in a situation where the government has continued the policy of pharmaceutical cost
reductions in the context of the need to secure stable financial resources for the social security system.
The Mochida Pharmaceutical Group will intensively focus on the following three key points so the Group can deal
with all types of changes in the environment:

1. Focusing on new drugs, etc.
2. Making continuous investments to create next - generation leading products
3. Redistributing resources strategically through the selection and focusing processes

Code of Conduct ofMochida Pharmaceutical Group

Mochida Pharmaceutical Group expresses its raison d’être in its motto andcorporate philosophy. It then indicates its 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 for compliance, and contributing
to the realization of a sustainable society in our Code of Conduct.

03

We will respond to medical and healthcare needs with concentration of the total power of
the Group covering research and development, manufacturing and marketing,pursue sustainable growth by promoting selection and focusing processes, andrestructure the earnings structure to respond to further environmental changes.

Mochida Pharmaceutical Group Integrated Report 2021

As the top priority issue, we will concentrate our resources on the targeted areas of cardiovascular medicine, obstetrics
and gynecology, psychiatry, and gastroenterology, and focus on new drugs to maximize profit in our core pharmaceuticalbusiness. In addition, we will further promote strategic alliances that stress the importance of partnerships.
We are pursuing investments in business activities that will lead to future competitiveness in order to create leading
next-generation products. In pharmaceutical research, we are enhancing our development pipelines by in-licensing
candidate drugs for development at an early stage through the promotion of open innovation. In addition, we will work on
the overseas expansion of our own products as well as the bio material business.
We will proceed with selection and concentration in company-wide organizational management, continue topromote structural reform, and strengthen interdepartmental cooperation. We will also strategically maximize the use of
the Group’s finite human, material, and financial resources, while actively seeking collaboration with external resources atthe same time. We will aim to further accelerate our efforts to create innovation and improve productivity, and tostrengthen our profit-generating system.
Mochida Pharmaceutical Group will continually grow as a distinctive and globally valued group of companies in thelife and healthcare business by responding to medical and healthcare needs, taking full advantage of its strengths as a
mid-sized firm, such as agility and responsiveness.

Mochida Pharmaceutical Group Integrated Report 2021

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Code of Conduct
Mochida Pharmaceutical Group sets forth its fundamental approach not only for conducting corporate activities
appropriately from 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 alife / 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 areat odds with our ethical principles, we choose the ethical course of action.
(4)	We always take environmental impacts into consideration in our business activities.

Corporate development
Since its foundation, Mochida Pharmaceutical Group has consistently grown by contributing to medical advances inJapan as 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.”
Today, with cardiovascular medicine, obstetrics and gynecology, psychiatry, and gastroenterology positioned astargeted areas of the pharmaceutical business, we are meeting medical needs with a line-up of distinctive and usefulproducts in each of these areas. Meanwhile, in the healthcare business, we are focusing on the development of lowirritating and highly functional skin care products based on dermatology through communication with dermatologists.

History of “unique products”
Mochida wasfounded in Hongo,
Tokyo.
MochidaPharmaceuticalCo., Ltd.
was established.

1913

1913
●

(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.

1951
Listed on the Second
Section of the Tokyo
Stock Exchange (TSE).

1963

Established theParamedical Division.

1970

Listed on the First
Section of the TSE.

1975

●

(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.

Sprase(first hyaluronidase
preparation developed in Japan)

1970
●

1985
●

1990

3. Fundamental Approach of Senior Management (Led by Representative Director)(3)	Senior management will provide a whistleblowing hotline as one such effective internal system by whichanyone who notices a violation or potential violation of this Code of Conduct may report quickly and easily.
Further, we manage the facts and details known by whistleblowing in the strictest confidence and strictly
preserve the interests of whistleblowers, prohibiting any retaliatory action or disadvantageous treatment
against whistleblowers.

Pelanin(first estrogen preparation
developed in Japan)

Skina Babe(baby bath oil)1980(5)	We maintain a resolute attitude against anti-social forces.

(2)	Senior management will develop effective internal systems with comprehension of internal and external
feedback and seek to materialize corporate ethics.

1932●(4)	We make sure that risks which might affect our business activities are managed as an enterprise(1)	Senior management will serve as a leading model to instill this Code of Conduct in the employees ofMochida Pharmaceutical Group, recognizing its responsibility to materialize the spirit of this Code of
Conduct.

Ogoko(ophthalmic ointment)

1945

2. Fundamental Approach towards Social Demands(1)	We comply with laws, regulations and our rules established by each internal department, respond sincerely
to the 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.

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

Miraclid(world’s first ulinastatin
preparation)

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

1990
●

1999
Mochida HealthcareCo., Ltd. commenced
operation.
MochidaPharmaceutical Plant
Co., Ltd. commenced
operation.

●

2004
2005

MochidaPharmaceutical Sales
Co., Ltd. commenced
operation.

Collage Furfur(first shampoo containing
antimycotic ingredientsdeveloped in Japan)

2008

2010

●

2014

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

2011

Dinagest(treatment for endometriosis)●

Lexapro(antidepressant)

2016
●

2020
0

Lialda(treatment for ulcerative colitis)
200

400

600

800

1,000

1,200

Net sales(100 Millions of Yen)

05

Mochida Pharmaceutical Group Integrated Report 2021

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06

1 Value Creation Story

Value Creation Process
Mochida Pharmaceutical Group aims to grow as a unique life and healthcare group which meets medical

Through this, we aim to provide value as a pharmaceutical company in the form of “improvement in theand healthcare needs, gaining global recognition for its raison d’être, in accordance with its corporate

QOL of patients and their families,” “support for the different stages of a woman’s life” and ultimately

philosophy “Actively contributing to human health and well - being in the field of medicine, totally“contribution to human health and well - being.” We are also committed to contributing to the realizationcommitted to the development of innovative products.” We are committed to the “creation of uniqueof a sustainable society, which will, in turn, lead to achievement of the SDGs, and we will strive for

products to meet needs,” the “stable supply of high quality pharmaceuticals” and the “proper provision ofsustainable enhancement of corporate value through continuous growth as a company needed byvaluable information” through our activities in both the pharmaceutical and healthcare businesses.

society.

Social issues

Unmet
medicalneeds

Capitals

Provision of value
Contribution tohuman health and well-being

Financial capital

Human capital
Improvementof QOL

Business Activities

Improvement in the QOL of patients and their families
Support for the different stages of a woman’s life

Pharmaceutical business

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

Intellectual capital

Proper provision of valuable information
Escalationof
medical costs

Social capital

Healthcare businessOur contribution to the SDGs

Manufactured capital
Women’shealthNatural capital

Contribution to a sustainable society

Code of Conduct ofMochida Pharmaceutical Group

Sustainable enhancement of corporate value

07

Mochida Pharmaceutical Group Integrated Report 2021

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08

1 Value Creation Story

Consolidated Financial Highlights
Net sales

Operating income andoperating margin(Millions of Yen)

(Millions of Yen)

120,000

16,000106,761

11.7

11.7

Net income per share

R&D expenditures andR&D expenditures-to-sales ratio(Millions of Yen)

(Yen)

(Millions of Yen)

(Millions of Yen)

12.0

12,000250

180,000

20,00015.6

16,00015,226227.27

102,995214.73

97,349Total assets and net assets

(%)

10.9

109,643
101,799

100,000

Profit attributable to owners of parent

222.29212.87160,000

9.7
12,00011,374

8.7

11,662

8,526

10,59080,000200

9,023

12,0038.0

159,019

119,687

120,000

8,000

157,488

125,11016.0

161,791

120,665

11.2

126,974

11.9

11.7

12.0

10.5

13,003111,869150

8,807
60,000155,047

140,000

8,587

8,435

148,372(%)

11,912

12,00011,884
10,849100,000
117.56

8,000
4,598

40,0004.0

8.0

80,000
100

8,000

4,000

60,0004,000
20,0004.0

40,00050

4,000

20,00002017.32018.32019.32020.32021.302017.32018.32019.32020.32021.30.0

02017.32018.32019.32020.302021.32017.32018.32019.32020.3Operating income
Operating margin

2021.302017.32018.32019.32020.32021.302017.32018.32019.32020.32021.30.0

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

Total assets
Net assets

Changes in Major Consolidated Management Indicators(Millions of Yen)

2012.32013.32014.32015.32016.32017.32018.32019.32020.32021.3

Net sales

86,20589,21093,94787,252

92,272

97,349106,761

109,643

101,799

102,995

R&D expenditures

13,95912,519

11,961

11,777

13,454

15,226

11,912

13,003

11,884

10,849Operating income

14,92814,017

16,60011,68912,154

11,374

11,662

10,5908,807

12,003

Recurring income

15,28614,188

16,79911,90912,392

11,64812,008

10,928

9,154

12,260

Profit attributable to owners of parent

9,076

9,152

9,892

7,544

8,150

8,526

9,023

8,435

4,598

8,587

Comprehensive income

10,038

10,227

11,514

8,860

9,121

9,686

11,257

11,467873

11,412

Total assets

112,871

120,828

130,669

127,557

137,713148,372

155,047

159,019

157,488

161,791

Net assets

82,18988,542

93,68898,670104,929

111,869

119,687

125,110

120,665

126,974

Net cash provided by (used in) operating activities

8,706

11,90912,4785,122

15,211

5,583

3,283

12,565

9,347

9,198

Net cash provided by (used in) investing activities△1,254△1,964△4,359△1,953△15,576△1,835△426△1,121△1,760△880

Net cash provided by (used in) financing activities△6,395△4,122△6,089△5,288△2,917△3,291△3,483△6,094△5,328△5,112

Cash and cash equivalents at end of year

27,90033,72335,753

33,63530,35130,80830,18235,532

37,791

40,987

Per-Share Information*
Net income (yen)215.23221.13244.33188.63205.23214.73227.27212.87117.56222.29Net assets (yen)1,982.81

2,153.67

2,332.58

2,484.20

2,642.32

2,817.36

3,014.53

3,189.15

3,113.69

3,317.92

Shareholders' equity ratio (%)

72.8

73.3

71.7

77.4

76.2

75.4

77.2

78.7

76.6

78.5

Return on equity (ROE) (%)

11.3

10.7

10.9

7.8

8.0

7.9

7.8

6.9

3.7

6.9

Price to earnings ratio (times)

11.3

13.7

15.1

20.9

20.4

19.2

16.5

26.7

35.5

19.3

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

1,730
(398)

1,753
(398)

1,726
(402)

1,746
(417)

1,726
(420)

1,713
(418)

1,666
(420)

1,617
(448)

1,581
(482)

1,558
(504)

Financial Indicators* The Company conducted the consolidation of shares of its common stock 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 stock on April 1, 2019. Per- share information is calculated on the assumption that the share consolidation and share split wereconducted at the beginning of the fiscal year ended March 31, 2012.

09

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10

1 Value Creation Story

Interview with the President
We will contribute even more topeople’s health and well - being bysquarely facing medical andQ

What kind of “unique products” has Mochida provided to date?

healthcare needs and providingA

We have created innovative distinctive products from a unique perspective, suchas hormonal preparations and enzyme preparations and a high purity EPA drug.

innovative value - added products toaddress them.

Naoyuki Mochida,
Representative Director, PresidentQ	Please begin by explaining the kind of company Mochida Pharmaceutical Group is
and what it aims to achieve.

A

We aspire to be a “unique life and healthcare group whose raison d’être isrecognized internationally.”

The Group traces its origins back more than 100 years to 1913 when founder Ryokichi Mochida opened a pharmacy in
Hongo, Tokyo and began manufacturing pharmaceuticals based on a belief in “innovative research.” 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 subsequently became a joint-stock company in 1945 and, with the launch of sales and marketing activities in
1949, we became a fully integrated pharmaceutical company covering everything from R&D through to sales andmarketing. Based on our founding belief in “innovative research,” our motto of “farsighted, innovative research” and our
corporate philosophy “Actively contributing to human health and well-being in the field of medicine, totally committed tothe development of innovative products” were formulated, putting into writing the idea that every single employee,
whether engaged in R&D or not, will fulfil his or her role in a spirit of innovation.
Since its foundation, Mochida Pharmaceutical Group has contributed to society by creating unique products andmaking them available to patients in line with its motto and corporate philosophy.
We see increasingly diverse medical and healthcare needs as a business opportunity and are also ready to adapt tochanges in the business environment. In our core pharmaceutical business, we will continue creating useful new drugs
and will also tackle new business areas such as biomaterials and regenerative medicine. We will also continue putting
11

effort into the healthcare business, building on the progress we have made over more than 50 years.
Through the tireless pursuit of “unique” value, we will continue edging closer to becoming a “unique life andhealthcare group whose raison d’être is recognized internationally.”

Mochida Pharmaceutical Group Integrated Report 2021

After creating the ophthalmic ointment Ogoko, our founder Ryokichi Mochida was quick to focus on overseas
developments in hormonal preparations and developed Pelanin, the first estrogen preparation developed in Japanthrough the extraction of estrogen from pregnant mare urine. The company subsequently developed numerous hormonal
preparations including various estrogen and progesterone preparations and pituitary hormone preparations, building a
reputation as a pioneer of hormonal preparations.
We also focused on enzymes, releasing enzyme preparations such as Sprase, Kimotab and Uronase.
The technology we developed in this field was later used as a basis for the development of interferon preparationsin the field of biotechnology.
Furthermore, Epadel, released in 1990, was the world’s first high purity eicosapentaenoic acid (EPA) drug. EPA is
one of the fatty acids found in fish such as sardines. We focused on the research finding that the prevalence of cardiac
infarction and other heart disease caused by hypertension and coronary arteriosclerosis is low in Inuits who eat a large
amount of fish, and we conducted a great deal of R&D into the potential application of EPA in the treatment of disease.
The result of these efforts was Epadel. Through various mechanisms of action, EPA slows atherosclerotic plaqueprogression.
In this way, Mochida Pharmaceutical Group has provided “unique products.” Going forward, we will use the uniqueR&D capabilities and technological knowhow we have built up to date as a basis for actively forging alliances with outside
agencies and enterprises and in-licensing and utilizing new technologies, in order to meet the medical and healthcare
needs of the future.

Q

What are your views on the provision of value to society?

A

Our intention is to grow as a company needed by society, with emphasis on
contributing through our business activities.

As a life and healthcare group, we recognize that, above all else, we must contribute to human health and well-being
through our main business. We are committed to the “creation of unique products to meet needs,” the “stable supply ofhigh quality pharmaceuticals” and the “proper provision of valuable information” through our business activities. We
believe that honoring this commitment will lead to the provision of value to society as a pharmaceutical company, in otherwords, “improvement in the QOL of patients and their families,” “support for the different stages of a woman’s life” andultimately “contribution to human health and well-being.”
We believe it is our responsibility as a pharmaceutical company to ensure a stable supply of high quality
pharmaceuticals to healthcare facilities. Besides maintaining stable operations and quality at our manufacturing sites, weare also working to integrate and optimize the entire supply chain.
In terms of “support for the different stages of a woman’s life,” the obstetrics and gynecology domain has been apriority of Mochida Pharmaceutical Group for many years. Our intention is to help build a world where women are ingood health and can participate actively by providing pharmaceuticals for the treatment of diseases specific to women,
Mochida Pharmaceutical Group Integrated Report 2021

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1 Value Creation Story

such as Dinagest for endometriosis, the reduction of pain
Sustainable Development Goals
caused by adenomyosis and the treatment ofdysmenorrhea.
We also integrate ESG (environmental, social andgovernance considerations) into our business activities,
reducing our environmental impact, supporting
employees’ diverse working styles, promoting the active
participation and career advancement of women, andstrengthening corporate governance, with the intention ofcontributing to the realization of a sustainable society.
It is our understanding that the value we provide
contributes to realization of the sustainable development
goals or SDGs adopted by the United Nations, specifically
Goal 3: Good health and well-being, Goal 5: Gender equality, Goal 8: Decent work and economic growth, Goal 12:
Responsible consumption and production, and Goal 13: Climate action.
Mochida Pharmaceutical Group will not only fulfil its mission as a pharmaceutical company but also implement awide range of ESG initiatives to earn the trust of all stakeholders including shareholders, investors, employees andcustomers, and become a company which is needed by society.

Q

Q

Tell us about Mochida’s initiatives against COVID - 19 in fiscal year 2020.
	A

We mainly focused on preventing transmission among employees and others andon maintaining a stable supply of products.

In March 2020, Mochida Pharmaceutical Group established a COVID-19 Task Force led by the President to determine
policies for preventing infection and continuing business. We encouraged employees to work from home or stagger theirworking hours and implemented strict infection prevention measures. We also revised our internal regulations and sought
to enhance online conferencing systems to facilitate remote working.
Our medical representatives actively made use of digital marketing in their activities to provide information based on
an assessment of the specific needs of each medical institution.
We took necessary steps to maintain a stable supply of pharmaceuticals and will continue working to ensure that
there is no disruption to production or supply moving forward.
Our COVID-19 initiatives have made us reconsider on an ongoing basis the nature of our corporate activities,
including the nature of information provision activities by medical representatives and the workstyles of traditionally officebased employees.

Tell us about the business results and achievements in fiscal year 2020.
	A

We achieved gains in sales and income mainly due to growth in sales of new drugs
and lower SG&A expenses.

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
and competition among companies intensified. During fiscal year 2020, we were also affected by NHI drug price revisions
and the effects of COVID-19 such as fewer consultations and the cancellation or postponement of visits to medical
institutions by medical representatives.
Nonetheless, our consolidated business results for fiscal year 2020 showed gains in sales and income.
The pharmaceutical business reported increased sales, mainly reflecting growth in sales of new drugs and royalties
received. The impact of COVID-19 on sales was slight. The healthcare business posted higher sales in a businessenvironment characterized by strong demand for hygiene products such as soap.
Operating income grew, reflecting higher gross profit as a result of a lower cost ratio and year-on-year decline in
SG&A expenses largely due to decreased R&D expenditures.
Progress in the development pipeline was generally smooth although COVID-19 led to issues such as enrolment
delays and the inclusion of additional investigational sites in some projects. ACT-541468, a treatment of insomnia
disorder, progressed to the phase III clinical development stage. Development of MD-711 for the treatment of
pulmonary hypertension in interstitial lung disease began.
In new product launches, we released Urece for the treatment of gout and hyperuricemia and Dinagest Tablets
0.5mg for the treatment of dysmenorrhea. Meanwhile, in Thailand, an overseas subsidiary of Meiji Seika Pharma Co., Ltd.
began selling Epadel for the treatment of hypertriglyceridemia from April 2021.

13

Mochida Pharmaceutical Group Integrated Report 2021

Q	Tell us about the main points of the Medium - term Management Plan
(FY2021 - 2023).

A

We are determined to further accelerate initiatives for the creation of innovationand improvement of productivity.

The environment surrounding the pharmaceutical industry is changing at a dizzying pace, with the first ever ‘off-year’ NHI
price revision in April 2021. To factor the effects of such environmental changes into the plan in a timely manner, weformulate a three-year rolling plan, incorporating a new fiscal year every year.
Our policy under Medium-term Management Plan (FY2021-2023) is unchanged from Medium-term Management
Plan (FY2020-2022), in other words, we will respond to medical and healthcare needs with concentration of the total
power of the Group covering research and development, manufacturing and marketing, pursue sustainable growth byrefining its focus, and restructure the earnings structure to respond to further environmental changes.
During the three years of the plan, we intend to focus even more on
strengthening the corporate structure and will further accelerate initiatives for thecreation of innovation and the improvement of productivity. In measures tocreate innovation, we will focus mainly on in-licensing candidates for early
development through open innovation and on implementing product projects inareas such as biomaterials and regenerative medicine. In measures to improve
productivity, we will move beyond utilizing IT in certain areas to pursue
comprehensive digitalization and we will implement structural reforms andstrengthen cooperation between business units. We will go paperless across theGroup and renew our information systems and revise our business processes inconnection with this. We will also push ahead with digital marketing with a senseof urgency.

Mochida Pharmaceutical Group Integrated Report 2021

14

2 Business Activities

Pharmaceutical Businessdeveloping in collaboration with Sumitomo Pharmaceuticals (Suzhou) Co., Ltd. in China, and ACT-541468, a therapeutic
agent for insomnia we are developing in collaboration with Idorsia Pharmaceuticals Ltd., are all in the Phase III clinical trial
stage. MD-711, a therapeutic agent for pulmonary arterial hypertension and pulmonary hypertension associated withinterstitial lung disease, is in the Phase II/III clinical trial stage. dMD-001, a treatment for articular cartilage lesions is in thetherapeutic confirmatory trial study. (As of July 30, 2021)

Research & Development and Licensing Activities
Research
In our research, we maximize foresight and originality in allprocesses, based on our unique research and development
capabilities and diverse technological know-how cultivatedover many years.
In order to make our drug discovery research evenmore efficient, we are enhancing development pipelines byin-licensing candidate drugs for development at an earlystage by promoting “open innovation,” and promoting
collaborative drug discovery research and applied researchof new core technologies with the academia for the
purpose of developing pharmaceuticals. Since 2019, we
have implemented MOIRe (Mochida Open Innovation
Research), our open innovation program for drug discovery
research based on proposals from academic researchers.

Licensing and Partnerships
We value alliances with our many partners worldwide, including collaboration with the ones from industry and academia,
and we promote the in-licensing of products in development stage and commercial stage in our targeted therapeuticareas as well as in licensing of highly value-added products which meet the needs of patients and demands ofprofessional customers.
We are also propelling the expansion of our business of highly purified EPA to overseas including China, Thailand,
Vietnam and the United States by leveraging our established alliances. In Thailand, the subsidiary of Meiji Seika PharmaCo., Ltd. obtained approval to import and market our EPA drug for the treatment of hypertriglyceridemia in October 2020and launched it to the market in April 2021. In Vietnam, the alliance partner of Meiji Seika Pharma filed for approval of our
EPA drug.

[ Major Alliances ]Research Center (Gotemba)

Subjects

Bayer AG

Germany

Dinagest, a therapeutic agent for endometriosis

1992

Development

Lundbeck A/S

Denmark

Lexapro ®, an antidepressant2001

We are promoting development, focusing on new pharmaceuticals in priority areas and fields in which we specialize, highvalue-added products to meet unmet medical and customer needs, and biosimilars. We are working to maximize values ofcurrent products through initiatives such as the addition of drug indications and dosage forms, and the creation of evidence
through post-marketing studies. We are optimizing organizational structuring and resource allocation to accelerate drug
development and improve accuracy, in close cooperation with outside partners and contract research organizations (CROs).
Looking at our development pipelines, we filed for manufacturing and marketing approval of MND-2119, a newhighly purified EPA drug. A pediatric indication of Lialda ®, a pediatric indication of Lexapro ®, MD-120, an antidepressant
we are developing in collaboration with Pfizer Japan Inc., MND-21, a therapeutic agent for hypertriglyceridemia we are

United Therapeutics Corporation

U.S.

Treprost ®, a therapeutic agent for pulmonary arterial hypertension

2007

Shire Pharmaceuticals Group(now part of Takeda)

U.K.

Lialda ®, a therapeutic agent for ulcerative colitis

2009

Fuji Pharma Co., Ltd.

Japan

Biosimilar Filgrastim BS MOCHIDA

2010

Gedeon Richter Plc.

Hungary

Gedeon Richter’s biosimilars, including Teriparatide BS MOCHIDA2010

As of July 30, 2021

Ethical drug
Code

Name

Stage

Indications

Formulation

Remarks

LG Chem Ltd.

South Korea Biosimilar Etanercept BS MA

2012

LG ChemLtd.

South Korea Biosimilar Adalimumab BS MA

2014

EA Pharma Co., Ltd.

Japan

Goofice , a treatment for chronic constipation

2016

FUJI YAKUHIN Co., Ltd.

Japan

Urece ®, a treatment of gout and hyperuricaemia

2017

United Therapeutics Corporation

U.S.

MD-711, a therapeutic agent for pulmonary arterial hypertension

2017

®

EA Pharma Co., Ltd.

Japan

Movicol , a treatment for chronic constipation

2017

MND-2119

ethyl
icosapentate

Filed

Hyperlipidemia

Oral

In-house development <Japan>

Pfizer Japan Inc.

Japan

MD-120, an antidepressant2019

MD-0901

mesalazine

Phase Ⅲ

Ulcerative colitis(pediatric indication)

Oral

Licensed-in from Shire Pharmaceuticals Group(now part of Takeda)
In-house development <Japan>

Idorsia Pharmaceuticals Ltd.

ACT-541468, a treatment for insomnia

2019

Regenerative medicines for the treatment of rare and intractable diseases in thegastrointestinal area such as isolated hypoganglionosis

2020

Oral

Licensed-in from Lundbeck
In-house development <Japan>

MLD-55

escitalopram

Phase Ⅲ

Depression(pediatric indication)

MD-120desvenlafaxine

Phase Ⅲ

Depression

Oral

Co-development with Pfizer <Japan>

MND-21ethyl
icosapentate

Phase Ⅲ

Hypertriglyceridemia

Oral

Collaboration with Sumitomo Pharmaceuticals(Suzhou) <China>

ACT-541468

daridorexant

Phase Ⅲ

Insomnia

Oral

Co-development with Idorsia Pharmaceuticals
Japan <Japan>

MD-711

treprostinil

Phase Ⅱ/Ⅲ

Pulmonary arterial
hypertension

Inhalant

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

MD-711

treprostinil

Phase Ⅱ/Ⅲ

Pulmonary hypertension
associated with interstitial lungdiseaseInhalant

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

Medical device
dMD-001

15

Year ofConclusion

Country[ Pipeline ]

Alliance Partner

sodiumalginate

Therapeutic
confirmatory
study

Articular cartilage lesion

Mochida Pharmaceutical Group Integrated Report 2021

In-house development <Japan>

Kidswell Bio Corporation

Switzerland
Japan

®

Future Initiatives
Biomaterials BusinessWe are pursuing and developing the business of alginate-based biomaterials, aiming for future businessexpansion. dMD-001, a treatment for articular cartilage lesions is in the therapeutic confirmatory trial study.
New Businesses
We are pushing ahead with projects to develop regenerative medicines based on high purity mesenchymal stem
cells, aiming for their early commercialization. We are also exploring a wide range of candidate themes which will leadto new next-generation business.

Mochida Pharmaceutical Group Integrated Report 2021

16

2 Business Activities

Production

Quality Control and Safety Management

Mochida Pharmaceutical Group’s medical products aremainly manufactured by Mochida Pharmaceutical Plant
Co., Ltd. (“MPP”). The Head Office Plant in Ohtawara,
Tochigi Prefecture manufactures injectable, solid (oral)
and topical medicines.

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 support business activities by striving to ensure
reliability through management and evaluation of the quality of products handled, collection, analysis and evaluation ofsafety information, and other necessary measures.

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 andPharmaceutical 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)

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 informationback to healthcare professionals. Mochida Pharmaceutical contributes to the treatment of patients by providing
healthcare professionals with information through information provision activities by medical representatives, medical andpharma seminars, dissemination of information about prescription drugs online, and active use of webinars and otherdigital marketing tools.

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 totalTablet press for the production of solid oral dosage forms
quantity 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 ofmaterial to facilitate sorting and disposal and the development of container designs with different shapes to prevent
medical errors.

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

17

Mochida Pharmaceutical Group Integrated Report 2021

Four Targeted Areas
We are currently focusing on four targeted areas: cardiovascular medicine, especially treatments for lifestyle diseases
such as hyperlipidemia, hypertension, and hyperuricemia; obstetrics and gynecology, including treatments forendometriosis and pregnancy test kits; psychiatry, with emphasis on antidepressants; and gastroenterology, including
treatments for ulcerative colitis and chronic constipation.
Cardiovascular medicine
Urece ®, a selective urate reabsorption inhibitor (SURI) released in 2020, is a therapeutic agent for gout andhyperuricemia. 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
the reabsorption of uric acid, whilst having a small effect on other transporters. With Urece ® and other products such as
Epadel ®, a high purity EPA drug with numerous mechanisms which prevent the progression of atherosclerosis, andAtelec ®, a long-acting calcium channel blocker antihypertensive agent, we aim to increase our involvement in
cardiovascular medicine.
Psychiatry
Our core product in the psychiatry field is Lexapro ®, a selective serotonin reuptake inhibitor (SSRI). We launched
Lexapro ® as an antidepressant in 2011, and obtained approval for an additional indication of social anxiety disorder in2015. Low levels of neurotransmitters (specifically serotonin) 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 transmissionof messages between neurons, alleviating depression and reducing anxiety. With Lexapro ® and other products such as
Tecipul, a tetracyclic antidepressant, and Grandaxin, an autonomic nerve regulator, we are working to improve the QOLof patients in the psychiatric field.
Gastroenterology
In the gastroenterology field, we are focusing on Lialda ®, a treatment for ulcerative colitis, launched in 2016 and Goofice ®
and Movicol ®, both treatments for chronic constipation released in 2018. Lialda ® is a drug delivery system (DDS)

Mochida Pharmaceutical Group Integrated Report 2021

18

2 Business Activities

formulation of mesalazine for oral administration. It is designed to continuously release the active ingredient mesalazine toand throughout the colon. Approved as a once-daily oral therapeutic agent in both active and remission phases ofulcerative colitis and efficacious, Lialda ® improves patient adherence and has been well received by gastroenterologists
who treat ulcerative colitis.
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 of bile 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.
Movicol ® is a polyethylene glycol preparation. The drug increases the moisture in the stool thereby raising thevolume of stool to promote defecation. Overseas, Movicol ® has been widely used in both children and adults sufferingfrom chronic constipation.
Obstetrics and Gynecology - Supporting women’s health throughout every stage of their lives Mochida Pharmaceutical positions obstetrics & gynecology as a targeted area. Focusing on Dinagest, indicated forendometriosis, the reduction of pain caused by adenomyosis and the treatment of dysmenorrhea, we conduct
information-provision activities, including about pregnancy test kits. Additionally, we are working to provide women withcomprehensive health support at every stage of their lives by proposing use of our products to treat constipation anddepression 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.
Then, in 2020, we launched Dinagest Tablets 0.5mg specifically for dysmenorrhea, helping improve the QOL ofpatients suffering from dysmenorrhea.

Major Products

Product Name
International Nonproprietary Name (INN)
Main Indications

EpadelTreprost ®

Urece ®

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

treprostinil
Pulmonary arterial hypertension (PAH)

dotinurad
Gout and hyperuricemia

Atelec ®

Atedio ®

cilnidipine
valsartan/cilnidipine
Hypertention

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

Lexapro ®

Tramcet ®

escitalopram
Depression and depressive symptoms,
Social anxiety disordertramadol/paracetamol
Chronic pain, Pain after tooth extraction

Lialda ®

Goofice ®

Movicol ®

mesalazine
Ulcerative colitis

elobixibat
Chronic constipation

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

Dinagest

Doxil ®

Gonacard W

dienogest
Endometriosis, Pain caused byadenomyosis, Dysmenorrhea

Doxorubicin
Ovarian cancer exacerbated after
the chemotherapy, AIDS-related Kaposi’s sarcoma

hCG
Pregnancy test kit

Information about diseases
Mochida Pharmaceutical provides a wide range
of information to increase patient understandingof illness. We produce guides for patients
explaining diseases and giving them lifestyle tips,
and we distribute them through medical
institutions. We have also created information
pages about diseases on our website for patientsand the general public.

19

Mochida Pharmaceutical Group Integrated Report 2021

Information page about diseases

https://www.mochida.co.jp/patient/

Mochida Pharmaceutical Group Integrated Report 2021

20

2 Business Activities

Healthcare BusinessMochida Healthcare Co., Ltd. (MHC) focuses on developing high-performance, value-added dermatological skin careproducts through communications with physicians, pharmacists, and nurses.
Major 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.
MHC never compromises in the production of its skin care products for the skins of customers of all ages. We willcontinue developing innovative products using the capabilities we have fostered through the development ofpharmaceuticals.

Major Products

Total skin care for sensitive skin

Collage series
In 1980, before the expression “sensitive skin” was in common
use, we succeeded in developing Collage Cream, Japan’s firstbasic skin care product containing natural soluble collagen(S-Collagen), through repeated testing in cooperation withdermatologists. Focusing on low-irritating, fragrance-free,color-free products for delicate skin, we continued to launchdermatological skin care products one after another as a pioneerof skin care products for sensitive skin.
Focusing on sensitive skin for half a century, MHC now
offers gentle, high-performance basic skin care products suchas the Collage Repair series, which, through “far-sighted
care * 1” and “routine care * 2,” achieves “sensitive skinmanagement * 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 to cater fordifferent customer lifestyles and needs, including the Collage
Soap series of nonirritating soap formulated for each specificskin type and use, and Collage D Medi Power series ofmoisturizing products for dry skin (including people with atopic
eczema).

Collage Repair series

Collage Fufur, Japan’s first medicated shampoo containing anantimycotic (antifungal) agent (miconazole nitrate), wasdeveloped based on the novel concept of caring for the scalp,
given that dandruff is triggered by the growth of fungus on thescalp.
MHC now provides Collage Furfur Next shampoo andrinse, which contain an antimycotic agent and Collage Furfur
Premium Shampoo, which contains deodorant ingredients forpeople concerned about scalp odor. All these products havebeen warmly welcomed by those worried about dandruff or an
itchy scalp.
Meanwhile, MHC provides Collage Furfur Soap, abodywash containing an antimycotic agent, for those sufferingfrom skin problems, and Collage Furfur Hair Growth series * 6
containing a female hormone * 7 for women worried about hairthinning and hair loss.

Collage Furfur Next shampoo and rinse

Collage Furfur Premium Shampoo

Collage Furfur Soap
seriesCollage Furfur
Hair Growth series

The first skincare babies experience

Skina Babe series

Collage B.K.AGE seriesSpecial care is needed when bathing a baby with soap as soapy
hands are slippery. Skina Babe bath lotion for babies wasdeveloped in response to calls from obstetricians andgynacologists for a less slippery, safer bath lotion for washingbabies without using soap. Today, more than 50 years after its
launch, Skina Babe still enjoys wide popularity.
Furthermore, in 2018, we launched Skina Babe Milky Lotion,
which protects the skin from birth by providing very rich moisture.

Skina Babe

Skina Babe Milky Lotion

Easy hygiene products for the bedridden

Skina series
Collage Soap series

Collage D Medi Power series

Mochida Pharmaceutical Group Integrated Report 2021

Collage Furfur series*6 Does not contain an antimycotic agent.
*7 Ethinylestradiol*1 A daily skin care regimen to prevent skin roughness anddryness (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

21

Haircare and bodycare products
containing antimycotic (antifungal) agent

The Skina series is a series of hygiene products for those whoare bedridden either in hospital or at home. We developed
hygiene products for washing the skin without water in 1970,
after listening to nurses working on hospital wards and striving
to develop products only a pharmaceutical company could
develop. Wanting to put smiles on the faces of carers andpatients alike, MHC has continued providing these popular
products for many years.
Today, MHC offers an extensive line-up of products fordifferent scenarios, including dilution type products and dry
shampoo.

Skina series

Mochida Pharmaceutical Group Integrated Report 2021

22

3 Corporate Governance

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

Corporate Governance Structure
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 through discussion by the
Board of Executive Managing Officers and the Board of Group Management, both of which meet on a weekly basis.
Mochida Pharmaceutical’s Board of Directors comprises 10 Members of the Board, including three Outside Directors,
and an Executive Officer system has also been introduced to clearly separate the functions of the Board of Directors into
management decision-making and the supervision of business operations and to expedite management decisionmaking and business operations.
For the purpose of strengthening objectivity and accountability 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 andExecutive Officers, Mochida Pharmaceutical has established the Nomination and Compensation Advisory Committee, amajority of which comprises Outside Directors, as a voluntary advisory body to Representative Directors, and our corporate
decisions on such nomination and compensation are made in light of the opinions of said Committee.
Mochida Pharmaceutical maintains, operates and evaluates 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 our overall business, as part of our internal control system based on the
Companies Act.
As measures for reinforcing compliance, we maintain our compliance system by establishing the “Code of Conduct
of Mochida Pharmaceutical Group” and seeking to embody the spirit of the code through regular meetings of the Ethics
Committee, which includes outside experts, and the performance of internal checks and awareness-raising activities,
and also by establishing the Corporate Ethics & Compliance. Regular training programs on compliance for our group
officers and employees are regularly provided.

Corporate Governance StructureMembers of the Board

Corporate Ethics &Compliance23

Mochida Pharmaceutical Group Integrated Report 2021

[ Details of Main Meetings Held (FY2020) ]Meeting

Composition

Details

Board of Directors

10 Members of the Board (including 2 Outside Directors) * 1

14 meetings held
Attendance rate of Members of the Board including Outside
Directors was 100%.

Audit & Supervisory Board

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

17 meetings held
The attendance rate of Audit & Supervisory Board Members
including Outside Audit & Supervisory Board Members was 99%.

Board of Executive
Managing Officers

Executive Managing Officers and higher ranking positions at
Mochida Pharmaceutical

53 meetings held

Board of GroupManagement

Executive Managing Officers and higher ranking positions at
Mochida Pharmaceutical, and presidents of subsidiaries

51 meetings held

Ethics Committee

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

1 meeting held

Nomination andCompensation Advisory
Committee

3 Members of the Board (including 2 Outside Directors)

4 meetings held
Attendance rate of Members of the Board including Outside
Directors was 100%.

Management Policy
Meetings

Executive Managing Officers and higher ranking positions at
Mochida Pharmaceutical

100 meetings held

Executive Officer Meeting

Executive Officers and higher ranking positions

12 meetings held

*1 In FY2020, the Board of Directors was composed of 10 Members of the Board, including 2 Outside Directors.
As of June 29, 2021, Mochida Pharmaceutical has 3 Outside Directors.

Board of Excecutive
Managing Officers

Nomination and Compensation
Advisory Committee

Mochida Pharmaceutical has established the Internal Audit Department as an internal audit organization. The
Internal Audit Department implements internal audits of the business operations of Mochida Pharmaceutical Group in its
entirety from the viewpoint of compliance and risk management, reports the results of such audits and provides advice tothe Board of Executive Managing Officers and the Board of Directors and reports such results to the Audit & Supervisory
Board Members. The Audit & Supervisory Board comprises two Full-Time Audit & Supervisory Board Members and three
Outside Audit & Supervisory Board Members, making a total of five members. To secure lawfulness and transparency ofmanagement decision-making and business operations, in accordance 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 and others, collect the relevant information and improve the auditing
environments. Each Audit & Supervisory Board Member also attends meetings of the Board of Directors and otherimportant meetings, and investigates business operations and assets at the headquarters, main business offices andsubsidiaries of Mochida Pharmaceutical, including supervision and verification of the status of the internal control system,
the independence of the Accounting Auditor, and the appropriate execution of audits by the Accounting Auditor.
The Internal Audit Department, Audit & Supervisory Board Members, and Accounting Auditor work closely toensure the effectiveness of the audits.
As reasons for adopting the current corporate governance structure, considering Mochida Pharmaceutical’s sizeand business nature, we judge that at this point in time, the most suitable governance structure to pursue management
efficiency and to ensure the appropriate function of checking the management simultaneously requires: (1) management
decision-making by the Board of Directors with a reasonable number of members, comprising inside Members of theBoard with thorough knowledge of Mochida Pharmaceutical and its business and Outside Directors with abundant
knowledge and experience in specialized fields, and (2) a system for checking the management by Audit & Supervisory
Board Members including Outside Audit & Supervisory Board Members.

Analysis and evaluation of the effectiveness of the Board of Directors
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 the Board of Directors
analyzes and evaluates the effectiveness of the Board of Directors as a whole based on the survey results.
Results of analysis and evaluation in FY2020 confirmed that the Board of Directors generally functioned effectively.
We will continue making improvements to maintain and increase the effectiveness of the Board of Directors in light of theanalysis and evaluation results, such as continuing to hold more substantive discussions on the direction of management
including corporate strategy.

Mochida Pharmaceutical Group Integrated Report 2021

24

3 Corporate GovernanceBusiness Risks

Compliance

Mochida Pharmaceutical Group enacted Risk Management Regulations applicable to Mochida Pharmaceutical Groupand also established the Risk Management Committee composed of the Heads of Divisions, the presidents ofsubsidiaries and other relevant members, putting in place a structure for recognizing risks which might have aconsiderable adverse impact on Mochida Pharmaceutical Group’s business and management (major risks) and forconsidering, assessing and discussing measures and policies for addressing such risks.

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 toencourage fair competition.

Ethics Committee[ 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
capital and time. However, development may be suspended or delayed due to reasons suchas a failure to prove the initially anticipated efficacy or the emergence of unforeseen adverse
drug reactions in the process. 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 initially anticipated as a result.

Risks associated withproduction andprocurement

25

Mochida Pharmaceutical Group does its best to ensure the quality of its products, inaccordance with regulations based on applicable laws. However, the emergence of quality
issues due to production defects at Mochida Pharmaceutical Group plants or the delay orsuspension of product or raw material supply by a specific supplier on which the Groupdepends due to some factor or other, despite the establishment of procurement management
units and the implementation of procurement management, could lead to the recall of
products, the delay or suspension of shipments or supply shortages, the revocation of alicense, the suspension of operations or other administrative disposition, decreased revenue orother consequences, and the Group’s operating results and financial position may be severely
impacted as a result.

The Ethics Committee is composed of the President of
Mochida Pharmaceutical, the officer in charge of ethics,
and outside experts and is chaired by the President. The
Ethics Committee carries out internal checks andawareness-raising activities striving to materialize the spiritof the Code of Conduct of Mochida Pharmaceutical
Group into Group activities.

Ethics Committee Working GroupThe Group is composed of Heads of Divisions, presidents
of subsidiaries or the like, being responsible forcompliance with the Code of Conduct across all
operations, prevention of improper conduct, provision of
ethics training for operations, review of internal rules andsystems for preventing fraud and improper conduct, andfor raising issues with and reporting to the Ethics
Committee.

Establishment of compliance - related
business units

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 andout-licensing 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 thaninitially forecast or expected.

Communication of message from the
President

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 toreduce healthcare costs such as healthcare system reforms, encouragement of the use ofgenerics and NHI drug price reductions) and any changes such as tighter regulation could
severely impact the Group’s operating results and financial position. Failure to comply withsuch regulations could lead to the recall of our products, revocation of our license, thesuspension of our business operations or other administrative disposition or a claim forcompensation 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 it best to ensure the reliability of clinical trials and thequality of products, in accordance with strict regulations based on pharmaceutical-related laws
and regulations concerning the quality and safety of pharmaceuticals. However, the emergenceof unforeseen adverse drug reactions could lead to the recall of products, the suspension of
manufacturing and marketing, litigation and damages, decreased revenue due to a loss of trustand other consequences, and our operating results and financial position could be severely
impacted.

Compliance training and awareness - raising
activities

Risks associated withbusiness continuity

A major disaster, accident, or a pandemic including COVID-19 could seriously affect ordamage Mochida Pharmaceutical Group’s plants, laboratories, branches, offices and othersites, leading to the shutdown or failure of information systems, the stagnation of businessactivities, the suspension of operations at plants, and supply shortages. The Group’s operating
results and financial position could be seriously impacted as a result.

Mochida Pharmaceutical Group Integrated Report 2021

We have established the Internal Audit Department andthe Corporate Ethics & Compliance, to promote theobservation of compliance.

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 compliancebreaches such as corporate scandals and the President
himself always stresses the importance of compliance.

The Corporate Ethics & Compliance provides ethics
training upon each employee’s entry to the company andupon appointment to a managerial post as well as rankbased ethics training and companywide ethics training.
Each Division Head provides ethics training to the officers
and employees in the Division according to thecharacteristics of operations of the Division. Members of
the Board, Audit & Supervisory Board Members andOfficers are also given ethics training. We also disseminate

information about compliance through the intranet on aregular basis to raise awareness about compliance.

Corporate ethics helpline
We have a hotline by which officers and employees who
noticed a compliance issues or the like may makewhistleblowing reports or seek advice. Officers andemployees have the option to report to or consult withstaff or the officer in charge of corporate ethics within thecompany or to directly report to or consult with an outside
lawyer or other expert. We have also establishedstandards for handling whistleblowing reports within
Mochida Pharmaceutical Group and take appropriate
measures to ensure that anyone making a whistleblowing
report or seeking advice does not suffer disadvantageous
treatment.

Initiatives concerning medical and healthresearch involving human subjects
We have enacted “Ethical regulations on life science andmedical research involving human subjects” to ensure thatlife science and medical research involving humansubjects respects human dignity and human rights and isconducted appropriately with understanding andcooperation of society. In accordance with theseregulations, 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 (Replacement: methods which avoid
or replace the use of animals; Reduction: methods which
minimize the number of animals used for experiment; andRefinement: methods which minimize suffering andimprove welfare of animals). In terms of inspection andevaluation by an independent third party, we undergo
onsite inspections by the Center for Accreditation ofLaboratory Animal Care and Use in Japan Health Science
Foundation and have obtained accreditation.

Mochida Pharmaceutical Group Integrated Report 2021

26

3 Corporate Governance

Officers (as of Jun. 29, 2021)
Members of the Board

Executive Officers
Masaaki Naotsuka
Executive Officer, Mochida Pharmaceutical Plant

Kazumasa Fukuchi
Head of Pharmaceutical Business Division

Tomokazu Matsusue
Representative Director, President

Representative Director,
Senior Executive Vice President

Member of the Board,
Senior Executive Managing Officer

Member of the Board,
Senior Executive Managing Officer

Member of the Board,
Executive Managing Officer

Naoyuki Mochida

Chu Sakata

Keiichi Sagisaka

Junichi Sakaki, Ph.D.

Kiyoshi Mizuguchi, Ph.D.

Apr. 1981 Joined the Company

Apr. 1982 Joined the Mitsubishi Bank, Ltd.

Apr. 1980 Joined the Company

Mar. 1993 Joined Ciba - Geigy AG

Apr. 1982 Joined the Company

May 1986 Earned an MBA from Indiana University in the U.S.

May 2007 General Manager of Syndicated Finance Division and the Global Head ofApr. 2003 Head of Metropolitan Branch Office

Jul. 2005 General Manager, Research Strategy and Alliances at Novartis Pharma K.K.

Apr. 2003 Head of Development Research

Apr. 2005 Head of Tokyo Branch Office

Dec. 2006 Joined Banyu Pharmaceutical Co., Ltd.

Apr. 2010 General Manager, Head of Clinical Research Department

Apr. 1988 Joined Ajinomoto Co., Inc.

Syndication at the Bank of Tokyo -Mitsubishi UFJ, Ltd. (BTMU)

Feb. 2009 Regional Head for the Middle East at BMTU

Apr. 1991 Joined the Company
Apr. 1996 General Manager, Head of the Clinical Development Planning Department
Apr. 1997 General Manager, Head of the Finance Department
Jun. 1997 Member of the Board
Jan. 1998 Senior Executive Managing Officer, Head of the Corporate Planning

Department
Jan. 1999 Representative Director, President (to the present)
Apr. 2010 Vice - Chairman of Mochida Memorial Foundation for Medical andPharmaceutical Research
Jun. 2016 Chairman of Mochida Memorial Foundation for Medical and Pharmaceutical
Research (to the present)

Jun. 2011 Advisor of the Company
Jun. 2011 Member of the Board, Executive Officer and Assistant Officer, Planning &Administration

Apr. 2012 Head of Planning & Administration DivisionJun. 2012 Executive Officer, Planning & Administration, Head of Planning &Administration DivisionJun. 2013 Member of the Board, Executive Managing Officer
Jun. 2016 Representative Director, Senior Executive Managing Officer with jurisdiction
over Planning & Administration, Audits and Corporate Ethics
Jun. 2017 Assistant to the President, Senior Excecutive Managing Officer, Operations ingeneral (to the present)
Jun. 2021 Representative Director, Senior Executive Vice President (to the present)

Jun. 2007 Executive Officer
Apr. 2008 Deputy Head of Pharmaceutical Business DivisionJun. 2009 Head of Pharmaceutical Business DivisionJun. 2010 Member of the Board, Executive Officer
Jun. 2013 Member of the Board, Executive Managing Officer, PharmaceuticalBusiness, Head of Pharmaceutical Business Division
Apr. 2015 Executive Managing Officer, Pharmaceutical Business
Jun. 2016 Member of the Board, Senior Executive Managing Officer (to thepresent)
Jun. 2021 Senior Executive Managing Officer, Pharmaceutical Business andMochida Healthcare (to the present)

Director, Chemistry Department, Tsukuba Research Laboratories
Jul. 2009 Joined the Company
General Manager, Head of Research Planning and Management Department
Apr. 2010 Head of Discovery Research
Jun. 2012 Executive Officer, Deputy Head of Business Development DivisionJun. 2014 Member of the Board, Executive Officer, Business Development
Jun. 2016 Member of the Board, Executive Managing Officer
Oct. 2018 Executive Managing Officer, Business Development and Biomaterials Business(to the present)
Jun. 2021 Member of the Board, Senior Executive Managing Officer (to the present)

Jun. 2012 Executive Officer, Head of Clinical Research and Development DivisionJun. 2015 Member of the Board, Executive Officer
Jun. 2017 Member of the Board, Executive Managing Officer, Research andDevelopment (to the present)

Jun. 2021 Executive Managing Officer with jurisdiction over Mochida Pharmaceutical

Plant (to the present)

Head of Business Development Division

Hitoshi Mizuno
Head of Biomaterials Business Division and General Manager, Headof Medical Device Clinical Development Department

Taiji Hayano
Head of Clinical Research and Development Division

Kazunari Nakao
Head of Research Division

Takeshi Mochida
Deputy Head of Clinical Research and Development Division (ClinicalDevelopment Planning and Management and Medical Affairs) and
General Manager, Head of Clinical Development Planning andManagement Department

Yoshitaka Hosaka, Ph.D.
Deputy Head of Pharmaceutical Business Division (Marketing)Kenji Miyajima
Deputy Head of Pharmaceutical Business Division (Branches) andHead of Osaka Branch

Masayoshi Takeda
General Manager, Head of Finance & Accounting Department

Member of the Board,
Executive Officer

Member of the Board,
Executive Officer

Outside Director

Outside Director

Outside Director

Reiko Nakano

Yutaka Kawakami, Ph.D.

Yoshiharu Hashimoto

Tomoo Kugisawa

Hirokuni Sogawa

Nana Otsuki

General Manager, Head of Intellectual Property Department

Apr. 1985 Joined Eisai Co., Ltd.

Apr. 1985 Joined the Mitsubishi Bank, Ltd.

Apr. 1998 Joined Pfizer Japan, Inc.

Jan. 2009 General Manager of Yotsuya Commercial Banking Office at the Bank of

Oct. 2003 Transferred to the Office of Pharmaceutical Industry Research of the Japan

Pharmaceutical Manufacturers Association
Oct. 2005 Director of Clinical Submissions Department at Pfizer Japan Inc.
Dec. 2012 Joined the Company
Deputy Head of Clinical Research and Development DivisionJun. 2015 Executive Officer
Jun. 2017 Head of Clinical Research and Development Division
Apr. 2019 Head of RA, QA and PV Division (to the present)
Jun. 2019 Member of the Board, Executive Officer, RA, QA and PV (to the present)

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

Tokyo -Mitsubishi UFJ, Ltd. (BTMU)May 2011 General Manager of Osaka Corporate Banking Division No. 2 of Osaka
Corporate Banking Group at BTMU
Jun. 2013 Vice President, Head of Business Development Unit at Sharp Corporation
Jun. 2016 Full - time Corporate Auditor at Mitsubishi UFJ Capital Co., Ltd.
Jun. 2017 Joined the Company
Jun. 2017 Full - Time Audit & Supervisory Board Member
Jun. 2019 Member of the Board, Executive Officer, Planning & Administration andTechnonet, Head of Planning & Administration Division (to the present)

Fuji Law Office

Apr. 1995 Partner at Tokyo Fuji Law Office (to the present)
Apr. 2005 Professor at Omiya Law School
Jun. 2006 Outside Corporate Auditor at OG Corporation (to the present)
Jun. 2012 Outside Director of the Company (to the present)
Apr. 2019 Visiting professor at Chuo University Law School (to the present)

Apr. 1985 Professor at Keio University Faculty of Business and CommerceOct. 1999 Dean of Keio University Faculty of Business and Commerce

Dec. 2005 Managing Director at UBS Securities Japan Co., Ltd.
Jun. 2011 Managing Director at Merrill Lynch Japan Securities Co., Ltd.

Apr. 2007 Professor Emeritus at Keio University (to the present) and Professor at Seijo

Sep. 2015 Professor in Division of Management at Graduate School of Management,

University Faculty of Social Innovation
Apr. 2013 Professor Emeritus at Seijo University
Chief Advisor at GBS Research Institute (to the present)
Jun. 2015 Outside Director of the Company (to the present)

Audit & Supervisory Board Members

Full-Time Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Outside Audit &Supervisory Board Member

Ichiro Takahashi

Kazuhiro Miyaji

Kyosuke Wagai

Akiko Suzuki

Yoshifumi Miyata

Apr. 1980 Joined the Company

Apr. 1983 Joined the Company

Oct. 1977 Joined Tohmatsu Awoki & Co

Jan. 2004 General Manager, Head of Production Planning Department

Sep. 1982 Registered as a certified public accountant (to the present)

Jun. 2010 General Manager, Head of Legal Department

Apr. 2005 General Manager, Head of Planning Department at Mochida Pharmaceutical

Jul. 1991 Partner at Deloitte Touche Tohmatsu LLC

Apr. 2013 General Manager, Head of General Affairs Department
Jun. 2013 Executive Officer
Jun. 2014 Head of Planning & Administration Division and General Manager, Head ofGeneral Affairs Department
Apr. 2015 Head of Planning & Administration Division and General Manager, Head of
Human Resources Department
Jun. 2016 Executive Officer, Planning & Administration, Head of Planning &Administration Division and General Manager, Head of Human Resources
Department
Apr. 2017 Executive Officer, Planning & Administration, Head of Planning &Administration DivisionJun. 2017 Member of the Board, Executive Officer
Apr. 2019 Executive Officer, Planning & Administration and Technonet, Head of Planning& Administration DivisionJun. 2019 Full - time Audit & Supervisory Board Member (to the present)

27

Plant Co., Ltd.
Jun. 2005 Executive Officer at Mochida Pharmaceutical Plant Co., Ltd.
Jun. 2009 General Manager, Head of Finance & Accounting Department
Jun. 2010 Executive Officer
Apr. 2012 Deputy Head of Planning & Administration DivisionJun. 2016 Executive Officer, Audits and Corporate Ethics, Head of Audit and Corporate
Ethics & Compliance Division
Apr. 2018 Executive Officer, AuditsJun. 2018 Full - time Audit & Supervisory Board Member (to the present)

Mochida Pharmaceutical Group Integrated Report 2021

Jul. 2010 Executive Board Member of the Japanese Institute of Certified Public

Accountants (JICPA)

Jun. 2016 Outside Audit & Supervisory Board Member of the Company (to thepresent)
Jul. 2016 Audit & Supervisory Board Member of JICPA
Jun. 2017 Outside Audit & Supervisory Board Member at Tokyo Electron Limited(to the present)
Jun. 2017 Representative Director and Chairman at XBRL Japan Inc. (to thepresent)

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

Apr. 2006 Executive Officer and General Manager of Financial Institution Relations

Sep. 1990 Joined the Company

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

Sep. 1998 Joined Tokyo Eiwa Law OfficeJun. 2010 Outside Audit & Supervisory Board Member of Tsugami Corporation

Sep. 2002 Joined Tokyo Office of Oh -Ebashi LPC & Partners

Jun. 2012 Representative Director and Vice -President of Trust & Custody Services

Jun. 2019 Outside Audit & Supervisory Board Member of the Company (to the present)

Oct. 2018 Outside Director at Wellness Communications Corporation (to the present)

Joined Anderson Mōri & Rabinowitz

Partner (Member of the LPC)

General Manager, Head of Human Resources Department

Nagoya University of Commerce & Business (to the present)
Jan. 2016 Executive Officer at Monex, Inc.
Sep. 2016 Member of Operating Committee of Agricultural and Fishery Co - operative
Savings Insurance Corporation (to the present)
Apr. 2017 Member of Fiscal System Council of Ministry of Finance (to the present)
Jun. 2017 Outside Director of Credit Saison Co., Ltd. (to the present)
Jun. 2018 Outside Audit & Supervisory Board Member of Tokio Marine Holdings, Inc. (tothe present)
Sep. 2019 Outside Director of Nishogakusha (to present)
Oct. 2019 Member of Regulatory Reform Promotion Council (Chair of Employment andHuman Resource Development Working Group) (to the present)
Apr. 2021 Expert Director at Monex, Inc. (to the present)
Jun. 2021 Outside Director of the Company (to the present)

Full-Time Audit &Supervisory Board Member

Apr. 2009 General Manager, Head of Marketing and Sales Administration Department

Junichi Makino

Department at the Dai - ichi Mutual Life Insurance Company.

Bank, Ltd.

Jun. 2021 Outside Audit & Supervisory Board Member of the Company (to the present)

Mochida Pharmaceutical Group Integrated Report 2021

28

4 Environment and Society

Environment[ Trend of CO2 Emissions ]
19,60618,924

18,788(tons)
17,865

Consideration for the Environment

17,005

Mochida Pharmaceutical Group stipulates “always taking environmental impacts into consideration when conducting
business activities” as a basic stance in the Code of Conduct of Mochida Pharmaceutical Group and we are focusing on
what we can do to contribute to the realization of a sustainable society.
FY2016FY2017FY2018FY2019Reduction and recycling of waste
Mochida Pharmaceutical Group is working on the
reduction and recycling of waste generated in its businessactivities. We promote the 3Rs (Reduce, Reuse, Recycle)
and are committed to reducing the amount of waste we
generate to 582 tons or lower by FY2030, increasing ourwaste recycling rate to 98% or higher, and maintaining aplastic waste recycling rate of 65% or higher.

FY2020

Environmental Management
Mochida Pharmaceutical Group has established the Environmental
Measures Committee as an organization which examines importantmatters related to the environment. The Committee formulates a
medium- and long-term environmental action plan for MochidaPharmaceutical Group, examines measures to address environmental
issues which affect the Group, makes recommendations tomanagement, and promotes environmental activities at each businesssite. 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.
(“MPP”), which is the Mochida Pharmaceutical Group’s production
center, was awarded ISO 14001 certification by the International
Standards Organization for its environmental management system andimplements activities to protect the environment on an ongoing basis.

[ Trend of Energy Consumption ]

FY2016370

FY2017375

FY2018362

FY2019354

FY2020

99.0%

99.1%

99.2%

515 510508 504

502 498

FY2017FY2018FY2019

ISO14001 renewal audit certificate

Reduction of CO2 emissions and conservation of energy

99.5%

582 578

FY2016

Total amount generated

Based on the CO2 reduction target set by the Federation of Pharmaceutical Manufacturers’ Associations of JAPAN(which is equivalent to a 25% reduction compared with FY2013 levels), Mochida Pharmaceutical Group has set a targetof reducing CO2 emissions to 15,600 tons or lower by FY2030. We are working to improve our energy efficiency andreduce our CO2 emissions through measures such as the systematic introduction of energy-efficient, energy-saving
equipment at all business sites on the upgrading of equipment, to fulfil our social responsibility and help realize a lowcarbon society. Based on this medium-term target, we have set fiscal-year targets and are implementing energy-saving
measures at all business sites.

Mochida Pharmaceutical Group Integrated Report 2021

[ Trends of Amount of Waste Generated and Recycling Rate ](tons)
99.4%

370

Environmental Initiatives

29(terajoules)

Amount recycled

463 461

FY2020Recycling rate

Sites covered: Head 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 Healthcare Co., Ltd.
CO2 emissions: T otal amount of energy-related CO2 emissions
from fuel and electricity consumption
Energy consumption: Total consumption of all types of energy
including electricity, fuel oil, gasoline, LNG
and city gas

Sites covered: H ead Office, Gotemba site and Fujieda site ofMochida Pharmaceutical Co., Ltd., Head OfficePlant of Mochida Pharmaceutical Plant Co., Ltd.,and Saitama Plant of Mochida Healthcare Co.,
Ltd. However, data for FY2020 excludes Head
Office of Mochida Pharmaceutical Co., Ltd.
Amount recycled: T otal amount of waste generated which was
the subject of reuse, material recycling or
thermal recycling (heat recovery and residueuse)

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

Waste training (Fujieda site)

Mochida Pharmaceutical Group Integrated Report 2021

30

4 Environment and Society

Water resources and water quality

Prevention of air pollution

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

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[ Trends of Water Consumption and Amount of Wastewater ](thousand m 3)
387

343

354

FY2017FY2018342

FY2016

The Gotemba and Fujieda sites, the Head Office Plant of
Mochida Pharmaceutical Plant Co., Ltd., and the Saitama
Plant of Mochida Healthcare Co., Ltd. fully recognize theimpact that the chemical substances needed to develop
and manufacture pharmaceuticals and healthcare
products have on human health and the ecosystem, andthey use and manage chemical substances properly.

382

373

Water consumption

347

328

FY2019341

322

FY2020

Amount of wastewater

Sites covered: Head Office, Gotemba site and Fujieda site andevery other business site of MochidaPharmaceutical Co., Ltd., Head Office Plant of
Mochida Pharmaceutical Plant Co., Ltd., andSaitama Plant of Mochida Healthcare Co., Ltd.
However, data for FY2020 excludes Head Officeof Mochida Pharmaceutical Co., Ltd.
Water consumption: Total of extraction of groundwater andwater purchased from public water supply

Mochida Pharmaceutical Group conducts environment activities in line with environmental targets for each fiscal year set
based on a medium-term plan.
In FY2020, we continued working to protect the environment in line with the fiscal-year targets we had set.

[Environmental Action Plan]

Reduction of CO2
emissions andconservation of energy

Energy consumption
CO2 emissions
Waste generated

Reduction and recycling Waste recycling ratioof waste
Plastic waste recycling
ratio

FY2020TargetFY2021 Target

Result

FY2030 Target

364TJ

354TJ

351TJ

―

17,519 t-CO2 or less

17,005 t-CO2

16,880 t-CO2 or less

15,600 t-CO2 or less

645 t or less

463 t

582 t or less

582 t or less

98% or more

99.5%

98% or more

98% or more

65% or more

84.9%

65% or more

65% or more

Sites 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 Healthcare Co., Ltd. However, rented buildings
including Head Office and every other business site of Mochida Pharmaceutical Co., Ltd. are not included in the waste data.

31

Mochida Pharmaceutical Group Integrated Report 2021

Relationship with Employees
Mochida Pharmaceutical Group respects the personality
and individuality of employees and aims to realize diverse
work styles and improve the skills of individual employees.
We also strive to maintain and improve workplace safety
and health.

Use of diverse human resources
Promotion of female participation and careeradvancement in the workplace
We are implementing initiatives to promote women’s
participation and advancement in the workplace under anaction plan established based on the Act on the
Promotion of Female Participation and Career
Advancement in the Workplace. Mochida Pharmaceutical
set a target of increasing the ratio of female managers to
8% or higher by the end of FY2020 and achieved thistarget, with a ratio of 9.9%. The Company is now working
to achieve its new FY2021-FY2025 target of increasing
the ratio of female managers to 12% or higher.
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 FY2020 (the legal
employment quota for persons with disabilities is 2.2%).

Environment Action Plan

Environmental Policy

Society

55-year-old employees, giving them the opportunity toreassess their future plans including their professional lives
and management of their assets.
Support for 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, including
extending the period of child care leave, switching part ofchild care leave to paid leave, adopting a system ofnursing care leave which goes beyond statutory
requirements, and introducing a system of shorter
working hours.
We have continued to increase support for childcare and nursing care, with the establishment of leave formaternity hospitalization, more widespread use ofaccumulated paid leave for child care and nursing care,
expansion of flextime to those working shorter working
hours due to child care, the introduction of telework, andthe revision of child care leave regulations as a measure
to prevent maternity harassment in recent years. We arealso focusing on encouraging
employees to take child care leave,
setting target percentages for thosetaking child care leave of 90% or higher
for women and 30% or higher for men(FY2021-FY2025).

Human resource development
Employment of elderly persons
Mochida Pharmaceutical Group provides specific training
In FY2007, we conducted a review of our system offor each type of job to hone and develop the individual
re-employment after mandatory retirement and switchedskills of every single employee. We have also introduced a
to a new system under which all employees wishing to do
self-development support system and support employees
so may be re-employed until the age of 65, in principle,
in their efforts to acquire qualifications and improve theirand we changed the treatment of employees in FY2013
skills, with the aim of developing employees who use their
to increase their motivation to work. We changed theinitiative and nurturing a challenging spirit.
treatment of employees again in FY2020 in response toenactment of the Act on
Improvement of Personnel[ Groupwide Training Structure ]Management and Conversion ofTraining
Open application basis
Self-development
Employment Status for Part-TimeLife plan seminar
General manager training
Workers and Fixed-Term Workers,
Skill transfer
Deputy general manager training
training
putting in place a system which
Support for selfManager training
Domestic training anddevelopment andgives elderly persons even more
Businessoverseas study program acquisition ofMembership
unit-specific
Assessment training
qualifications
motivation to work. Mochidatraining
training
Leadership training
Pharmaceutical Group also
Mid-level employee training
New employee training
provides life plan seminars to
Mochida Pharmaceutical Group Integrated Report 2021

32

4 Environment and Society

Aiming to be a great place to work

Occupational health and safety

Activities to revitalize forests

Promoting work style reform
Mochida Pharmaceutical Group is constantly working toachieve work-life balance and diverse, flexible working
styles. In recent years, we have also been focusing on
creating an environment which enables more efficient
work styles, taking action in response to the Act on the
Arrangement of Related Acts to Promote Work Style
Reform (including limiting overtime working hours andgaining an understanding of working hours for healthmanagement of managers and supervisors), encouraging
employees to use flextime, expanding the scope oftelework, and developing and enhancing necessarycommunication tools.

Health and safety
Aiming to create a workplace where employees can workwith peace of mind, we have built a structure formanaging and promoting health and safety acrossMochida Pharmaceutical Group and, as well as holding
health and safety committee meetings at each site, we
are working to prevent occupational accidents and ensure
workplace health and safety.

Our employees take part in activities to develop forests on a volunteer basis.
These activities are conducted under a partner program implemented by
Kanagawa Prefecture to revitalize forests, which Mochida Pharmaceuticaljoined in 2013 as part of CSR activities to commemorate the 100th anniversaryof its founding. Under the program, Mochida Pharmaceutical leases an area offorest in Kanagawa Prefecture, which it named Mochida Memorial Forest, andthe Company is constantly involved in activities to develop the forest.

Creating a rewarding workplace
Personnel staff conduct interviews with employees in an
attempt to obtain feedback about their work andworkplace, listen to their requirements and give advice on
any concerns or issues raised. We are also implementing
initiatives to increase job satisfaction and become an evenbetter place to work, including conducting an employee
survey to assess employee engagement and use thefindings in various measures to strengthen engagement.
Creating a workplace free of discrimination andharassment
The Group is working to prevent all types of harassment,
including sexual harassment, power harassment andmaternity harassment, through the provision of humanrights training for all Group employees. We have alsoestablished a consultation service for inquiries about
harassment or relationship concerns within the workplace,and inquiries are dealt with either by dedicated staff within
the company or an outside service provider.

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 forsupporting employees from four standpoints: selfcare,
care provided by Human Resources Department, careprovided by onsite occupational health professionals, andcare 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. Care 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
●
●

●

●

●

●

●

Relationship with Society
Support for healthcare professionals
To support healthcare professionals involved in treating COVID-19, we donated 4,000 units of Collage Furfur Foaming
Soap and 6,000 units of Collage D Medi Power Moisturizing Handcream from among our healthcare products to theJapanese Red Cross Society in May 2020.

Mochida Pharmaceutical Group Integrated Report 2021

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 Gotembasite also takes part in the “amago salmon release party”
organized by the Gotemba City Water Quality Preservation
Council every October.
Blood donation activities
Every year, the Gotemba site cooperates with the blood
donation activities organized by the Japanese Red Cross
Society.
In FY2020, the blood donation campaign took placein June and September. At the Shizuoka Prefecture Blood
Donation Promotion Convention in 2006, the Gotembasite was awarded the Governor’s Award as an exemplaryorganization, in recognition of its steadfast cooperation
with blood donations for more than 30 years.

●

●

33

Relationship with Local Community

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 litteron the banks near the site, to coincide with Environment
Month in June and River Conservation Month in July. In
FY2020, the clean-up took place in June.
Blood donation activities
Every year, the Fujieda site cooperates with the blood
donation activities organized by the Japanese Red Cross
Society.
In FY2020, the blood donation campaign took placein June.

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
as important 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 FY2020, 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 pharmacy students on
visits to give them an insight into the special feature of apharmaceuticals plant so that they can use thisknowledge when making career choices in the future. In
FY2020, the COVID-19 pandemic prevented any visits.
Blood donation activities
Every year, the Head Office Plant cooperates with theblood donation activities organized by the Japanese Red
Cross Society.
In FY2020, the blood donation campaign took placein July and February.

Mochida Pharmaceutical Group Integrated Report 2021

34

5 Corporate Data

Consolidated Financial Statements
Consolidated balance sheets

Consolidated statements of income(Millions of Yen)FY2019(Millions of Yen)FY2020FY2019(As of March 31, 2020) (As of March 31, 2021)

AssetsCurrent assets
Cash and time deposits

53,291

54,487

Notes and accounts receivable

28,06628,766

Electronically recorded monetaryclaims - operating

382

423

Marketable securities

7,999

8,999

Merchandise and finished goods

16,596

14,404Work in process

1,394

1,759

Raw materials and supplies

7,083

6,442

Other current assets

2,080

3,508

Total current assets

116,894

118,793

Fixed assets
Property, plant and equipment
Buildings and other structures, net

5,112

4,939

	Machinery and equipment andtransportation equipment, net

1,970

2,047

(From April 1, 2019 toMarch 31, 2020)

Net sales

101,799

102,995

Cost of sales

49,882

48,203Gross profit

51,91754,791

2―

51,91954,791

Selling, general and administrative
expenses

43,112

42,788

Balance at beginning of year

Operating income

8,807

12,003

Changes in the fiscal year:

Interest income

33

Dividend income

250

254

Real estate rent

76

77

Others

83

71

Total other income

413

405

Interest and charge (commission) expense41

41

Other expenses

5,290

5,092

Foreign exchange losses

15

102

1,220

Others8

313,851

13,299Total other expenses

65

148

674

646

9,154

12,260Gain on sales of fixed assets―

5

Settlement received

327

Compensation income

52Gain on sales of investment securities

1―

Gain on sale of businesses

185―

Total extraordinary gains

195

35

	Loss on sales and disposal of fixed assets77

113

16,256

20,272

Deferred income taxes

4,612

3,198

Others

5,198

5,580

Total investments and other assets

26,067

29,051

Total fixed assets

40,59342,998

157,488

161,791

Total assets

Recurring income
Extraordinary gains

Investments in securities

Liabilities
Notes and accounts payable

12,606

8,477

Electronically recorded obligations operating

1,052

1,245

Income taxes payable

1,042

Provision for bonuses

Contract loss

―

142

3,000

―

―

139

Removal expenses for fixed assets
Total extraordinary losses

3,077

395

2,061

Income before income taxes

6,273

11,900

2,335

2,496

Income taxes - current

2,349

3,144

698

787

Income taxes - deferred

△674

168

Other current liabilities

10,826

13,641

Total income taxes

1,675

3,312

Total current liabilities

28,562

28,710Net income

4,598

8,587

Profit attributable to owners of parent4,598

8,587

Other provisions

Long-term liabilities
Retirement benefits liability

4,800

4,652

Other long-term liabilities

3,460

1,453

Total long-term liabilities

8,260

6,106

36,82234,816

Total liabilities
Net assets(Millions of Yen)

Paid-in capital

7,229

7,229

1,871

1,871

Retained earnings

110,800

116,288

Net income

FY2019(From April 1, 2020 toMarch 31, 2021)

4,598

8,587

2,787

△6,854△8,857

Other comprehensive income, net of tax

Total shareholders’ equity

113,047

116,532

Unrealized gain on available-for-salesecurities△3,753

7,524

10,311Remeasurements of defined benefit
plans, net of tax

Total accumulated othercomprehensive income

131

28

37

Total other comprehensive income, net of tax △3,724

2,824

873

11,412873

11,412

Total comprehensive income

7,617

10,442

Total net assets

120,665

126,974

Total comprehensive income
attributable to:Total liabilities and net assets

157,488

161,791

Owners of parent

Mochida Pharmaceutical Group Integrated Report 2021

FY2020(From April 1, 2019 toMarch 31, 2020)

Treasury stockRemeasurements of defined benefit plans93

Treasury
stock

7,229

1,871

109,537△4,870

Dividends from surplus
Profit attributable to owners ofparent113,767

11,27765

11,342

Total net
assets125,110△3,334△3,334△3,334

4,598

4,598

4,598

△1,984△1,984△1,984000Acquisition of treasury stock
Disposal of treasury stock0

Net changes of items other thanshareholders' equity
Total
Balance at end of year

△3,75328△3,724△3,724

―

0

1,263

△1,983△719△3,75328△3,724△4,444

7,229

1,871

110,800△6,854

113,047

7,524

93

7,617

120,665

FY2020 (From April 1, 2020 to March 31, 2021)

(Millions of Yen)

Accumulated other comprehensive
incomeShareholders’ equity

Balance at beginning of year

Paid-in
capitalCapitalsurplusRetainedearnings

Treasury
stock

7,229

1,871

110,800△6,854

Total
Total
Unrealized gain Remeasurements accumulatedshareholders’ on available-for- of defined benefit
other
equityplans
sale securities
comprehensive
income113,047

7,524

93

7,617

Total net
assets120,665

Changes in the fiscal year:
Dividends from surplus
Profit attributable to owners ofparentDisposal of treasury stock

Consolidated statements ofcomprehensive income

Capital surplus

Unrealized gain on available-for-salesecurities

Retainedearnings△3,100△3,100△3,100

8,587

8,587

8,587

△2,003△2,003△2,003―――Acquisition of treasury stock

Shareholders’ equity

Accumulated other comprehensive income

Capitalsurplus

Extraordinary losses
Loss on disaster

Current liabilities

Paid-in
capital

Total
Total
Unrealized gain Remeasurements accumulatedshareholders’ on available-for- of defined benefit
other
equityplans
sale securities
comprehensive
incomeOther income

1,478

Investments and other assets

Accumulated other comprehensive
incomeShareholders’ equity

Gross profit - net

Reversal of provision for sales returns(Millions of Yen)

(From April 1, 2020 toMarch 31, 2021)

Land
Total property, plant and equipment

FY2019 (From April 1, 2019 to March 31, 2020)

FY2020

Others, net
Intangible fixed assets

35

Consolidated statements of changes in net assets―

Net changes of items other thanshareholders’ equity
Total
Balance at end of year

2,787

37

2,824

2,824

―

―

5,487

△2,003

3,484

2,787

37

2,824

6,308

7,229

1,871

116,288△8,857

116,532

10,311

131

10,442

126,974

Mochida Pharmaceutical Group Integrated Report 2021

36

5 Corporate Data

Share Information

Corporate Data (As of March 31, 2021)

Current Share Status

ProfileSites and Research Laboratories○ Number of shares(i) Total number of authorized share
120,000,000 shares(ii) Total number of shares issued and outstanding
40,630,000 shares○ Number of shareholders
6,333

Mochida Pharmaceutical Co., Ltd.

Branches
Sapporo Branch, Sendai Branch, Tokyodaini Branch, Tokyo Branch,
Metropolitan Branch, Nagoya Branch, Kyoto Branch, Osaka Branch,
Hiroshima Branch, Fukuoka Branch(As of March 31, 2021)

Consolidated statements of cash flows(Millions of Yen)FY2019FY2020(From April 1, 2019 toMarch 31, 2020)(From April 1, 2020 toMarch 31, 2021)

Income before income taxes

6,273

11,900Depreciation and amortization

2,731

2,742

△3

△27

△1

―

Cash flows from operating activities:

Settlement received
Loss (gain) on sales of investment securities

△185

―

Loss (gain) on sale and disposal of fixed assets

77

107

Loss on disaster―

142

Loss (gain) on sale of businesses

Contract loss

3,000

―

―

139

△123

160

Increase (decrease) in retirement benefits liability △224

△92

△254

△257

Removal expenses for fixed assets
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest and charge (commission) expense41

41

Decrease (increase) in notes andaccounts receivable-trade

890

△740

Decrease (increase) in inventories

△428

2,466

Decrease (increase) in other current assets

△115△1,342

192△3,934

Increase (decrease) in other current liabilities

△317

1,176

Other

△477

△1,378Subtotal

Increase (decrease) in notes andaccounts payable-trade

11,076

11,104

Interest and dividends received

254

257

Interest and commission paid

△35

△36

Settlement package received

3

27△1,950△2,154

9,347

9,198

△18,500△16,500

18,50018,500Purchase of short-term investment securities △5,000△6,000

Income taxes paid
Net cash provided by operating activities

Major Shareholders (top 10)
Number of
Shares Held

Payments into time deposits

Proceeds from sales of short-term
investment securities

5,000

5,000

Payment for purchases of tangible
and intangible fixed assets△1,958△1,935

Proceeds from sales of property,
plant and equipment―

204

Payment for removal of fixed assets

―

△153

Proceeds from sales ofinvestment securities

7

―

185

―

Proceeds from sale of businesses
Other

5

5

△1,760△880

Dividends paid

△3,338△3,103

Payment for acquisition of treasury stock△1,990△2,008Net cash used in investing activities
Cash flows from financing activities:

Proceeds from disposal of treasury stock
Other

―
△0

△5,328△5,112

Effect of exchange rate changes
on cash and cash equivalents

0△9

Net increase (decrease) in cash
and cash equivalents

2,259

Cash and cash equivalents at
beginning of year

35,532

37,791

Cash and cash equivalents at end of year

37,791

40,987

Net cash used in financing activities

37

0
△0

3,195

(thousand)Mochida Memorial Foundation for Medical andPharmaceutical Research

5,688

14.86

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

1,959

5.12

MUFG Bank, Ltd.

1,786

4.67

Princess Takamatsu Cancer Research Fund

1,683

4.40

Mizuho Trust & Banking Co., Ltd., Retirement
Benefit Trust (Mizuho Bank Account)
Re-trust Trustee: Custody Bank of Japan, Ltd.

1,614

4.22

Group Companies
Mochida Pharmaceutical Plant Co., Ltd.

Mochida Healthcare Co., Ltd.

Operations Commenced: April 1, 2005
Representative: Masaaki Naotsuka, President
Main Business: Manufacture of pharmaceuticals andcontracted manufacturing of healthcare
products
Paid - in Capital: ¥500 million (wholly owned by MochidaPharmaceutical)
Head Office Plant: 431, Nakadawara, Ohtawara, 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: Manufacture and sale of healthcare
products
Paid - in Capital: ¥100 million (wholly owned by MochidaPharmaceutical)
Head Office: PAXXS Bldg., 2 - 12 Ichigayahonmuracho,
Shinjuku - ku, Tokyo 162 - 0845, Japan
TEL +81 - 3 - 5229 - 3940
Sites: Sapporo Sales Office, Sendai Sales Office, Higashi
Nihon Branch, Yokohama Sales Office, Nagoya
Sales Office, Nishi Nihon Branch, Hiroshima Sales
Office, Fukuoka Sales Office, Saitama Plant

Nippon Suisan Kaisha Ltd.

1,200

3.14

Naoyuki Mochida

1,177

3.08

Custody Bank of Japan, Ltd. (Trust Account)

1,021

2.67

Kazue Mochida

1,016

2.66

Takeshi Mochida

949

2.48

(Note) T he Company holds 2,360 thousand shares of treasury stock, not included in theabove.
The shareholding ratio is calculated excluding treasury shares.

Distribution by Type of Shareholder
Japanese individual
investors andothersJapanese
individual
32.25% and others
investors

Japanese financial institutions
23.19% financial institutions
Japanese
23.19%
Japanese
securities
Japanesecompanies
securities
0.59%
companies
0.59%

32.25%

Treasury stock
5.81% stock
Treasury
5.81%

Foreign entities
9.69% entities
Foreign
9.69%

Other Japanese
corporations
Other
Japanese
28.47%
corporations
28.47%

Distribution by Number of Shares Held
Less than 1 trading unit 0.07%
605 shareholders
Less than 1 trading
unit 0.07%
605 shareholders
Treasury stock
Treasury5.81%
stock
1 shareholder
5.81%

1 trading unit or more
14.26%
trading unit or more
4,596 shareholders
4.26%
shareholders
104,596
trading
units or more
5.48%
979
shareholders
10 trading units
or more
5.48% 979 shareholders* Temporarily relocated to the above address due to reconstruction of the Head Officebuilding (at 1-7, Yotsuya, Shinjuku-ku, Tokyo).

Mochida Pharmaceutical Sales Co., Ltd.
Operations Commenced: June 2, 2014
Representative: Tadashi Morikawa, President(Effective June 29, 2021)
Main Business: Sale of pharmaceuticals
Paid - in Capital: ¥10 million (wholly owned by MochidaPharmaceutical)
Head Office: PAXXS Bldg., 2 - 12 Ichigayahonmuracho,
Shinjuku - ku, Tokyo 162 - 0845, Japan
TEL +81 - 3 - 5229 - 3929

Research Laboratories
Research Center (Gotemba), Pharmaceutical Laboratory (Fujieda)

Technonet Co., Ltd.
Head Office: 1 - 1 Ichigayahonmuracho, Shinjuku - ku,
Tokyo 162 - 0845, Japan
TEL +81 - 3 - 3353 - 7511

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

1 shareholder
1,000 trading units or more
76.86%
49 units
shareholders
1,000
tradingor more76.86% 49 shareholders

Mochida Pharmaceutical Group Integrated Report 2021

Other Operating Sites
Asahikawa, Hakodate, Aomori, Morioka, Akita, Koriyama, Takasaki,
Utsunomiya, Mito, Tsuchiura, Niigata, Matsumoto, Kofu, Tama, Chiba,
Matsudo, Saitama, Kawagoe, Atsugi, Shizuoka, Hamamatsu,
Hokuriku, Osaka - kita, Sakai, Kobe, Yonago, Okayama, Yamaguchi,
Takamatsu, Matsuyama, Tokushima, Kochi, Kitakyushu, Nagasaki,
Kumamoto, Oita, Miyazaki, Kagoshima, Okinawa

Percentageof Shares
Held (%)

Name of Shareholder

Cash flows from investing activities:
Proceeds from withdrawal of time deposits

Founded: April 16, 1913
Incorporated: April 28, 1945
Representative: Naoyuki Mochida, President
Main Business: Sale, import and export ofpharmaceuticals, etc.
Paid - in Capital: ¥7,229 million
Head Office: 1 - 1 Ichigayahonmuracho, Shinjuku - ku,
Tokyo 162 - 0845, Japan*
TEL +81 - 3 - 3358 - 7211
Number of Employees: 1,298 (Consolidated: 1,558)

100 trading units
or more100 tradingunits
or7.52%more
103 shareholders
7.52%
103 shareholders

Mochida Pharmaceutical Group Integrated Report 2021

38

5 Corporate Data

Our History
1900
1913

2000
Mochida was established by Ryokichi Mochida in Hongo,
Bunkyo-ku, Tokyo.

Started producing pharmaceuticals.
Started producing and marketing Ogoko, an ophthalmic
ointment.

1977

1979
1980

Started producing and marketing Luestin, an injectable
antiluetic.

1929

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

1981

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.

1985

1960

Launched Partan, a hemostatic drug that contributes touterine contraction.

1986

1963

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

1964

Nobuo Mochida was appointed president.

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.

39

Completed and relocated to the new headquarters officebuilding in Yotsuya.

Mochida Pharmaceutical Group Integrated Report 2021

Launched Liquid Thrombin Mochida
Soft Bottle, a hemostatic agent.
Launched the Collage S seriesof basic skin products.

Launched Tramcet® tablets,
an analgesic.

2014

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 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 the Collage Soap series of low-irritating soap
formulated for each specific skin type.
Launched Isoprinosine®, a chemotherapeutic agent.

Launched Beselna, the first treatment for condyloma
acuminatum developed in Japan.

Launched natural-type interferon preparations
IFN α MOCHIDA 500 and IFN β MOCHIDA.

Susumu Watanabe appointed president.

Listed on the First Section of the TSE.

2003

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

1990

Completed and started operating the Saitama Plant.

Launched biosimilar Filgrastim
BS MOCHIDA.

Launched Florid®-F injection for thetreatment of deep-seated mycoses.

Took part in “Life” Theme Pavilion at Japan
World Exposition and exhibited DNA structure model.

Launched Neutrogena, soap for sensitive skin.

Launched the Collage B.K.AGE
series.

Launched Goofice®, a treatment
for chronic constipation.

Launched Tecipul, a tetracyclic antidepressant.

Completed and started operating
the Shizuoka Plant.

Obtained the certification of ISO 14001 for Ohtawara Plant.

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

1989

Established the Medical Electronics
and Equipment Division.

Launched a switch-OTC versionof Epadel.

Launched Miraclid, the world’s first ulinastatin preparation.

Launched Grandaxin, an autonomic
nerve regulator.

1988

2013

Launched Arasena-A Cream, an antiviral agent.

Launched the Vitacollage series of health supplements.

Ei Mochida was appointed president.

Launched Gonavislide, a pregnancy test kit.

Launched Skina Babe, baby bath oil.

1976

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

1983

2008

1991

Completed Ohtawara Plant.

1992

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

1996

Commenced JELIS (EBM study for Epadel).

1997

Launched Atelec®, a calcium channel blocker.

1999

Naoyuki Mochida appointed president.

Launched Dinagest, a treatment
for endometriosis.
Launched Collage White Peel, an enzyme powder facewash.

Launched Epadel Capsule 300, the world’s
first high-purity EPA preparation.

Established the Paramedical Division and entered thequasi-drugs business.

1975

Launched Collage Cream, the first basic skin care productcontaining soluble collagen developed in Japan.

Completed and opened the Fuji Central ResearchLaboratory (Gotemba).

Launched Kimotab, an anti-inflammatory
enzyme preparation.

Launched Uronase, a fibrinolytic enzyme preparation.

2002

Launched Gonastick 25, a pregnancy test kit.

Launched Spurecur ®, a GnRH derivative preparation.

1982

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

1972

Launched Rocornal, a circulatory
function activator.

2001

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

1932

1970

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

Launched Movicol ®, a treatment
for chronic constipation.

2019

Launched the Collage Repair series.
Launched biosimilar Teriparatide BS
MOCHIDA.

2020

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

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 EPA preparations Epadel S 300 and 600.

Launched Fastic®, a fast-acting postprandial
antihyperglycemic agent.

Launched low-dose oral contraceptives Ortho 777-28 andOrtho M-21.

Launched glucoriina, a food for specified health uses
(FOSHU).

Launched Collage Furfur, the first shampoo containing
antimycotic ingredients developed in Japan.

Mochida Pharmaceutical Group Integrated Report 202140

https://www.mochida.co.jp

2021.10