Meiji Holdings Co., Ltd. · TSE:2269

Meiji — Investor Day (June 2017)

28 slides from Meiji's investor day presentation, Jun 19, 2017

  1. Slide 1: Pharmaceutical Business Strategy

    Briefing on Pharmaceutical Segment Pharmaceutical Business Strategy June 19, 2017

  2. Slide 2: Contents

    Contents 1. Market Environment 2. Our Growth Strategy  Business forecasts and other forward-looking statements are based on information available at the time of the release of this presentation and reasonable assumptions made by the Company. Actual results could differ materially from forecasts due

  3. Slide 3: 1. Market Environment

    1. Market Environment 3 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings Co., Ltd. All rights reserved.

  4. Slide 4: Ethical Pharmaceuticals Market in Japan

    Ethical Pharmaceuticals Market in Japan (JPY bn) +8.8% 10,837.8 -3.8% 10,430.7 +4.8% -0.6% YoY change 10,016.5 9,958.7 +5.5% +0.3% 9,534.9 9,560.1 FY3/12 FY3/13 FY3/14 FY3/15 FY3/16 FY3/17 Copyrightⓒ2017QuintilesIMS. Calculated based on JPM 2017 Mar MAT 4 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Hol

  5. Slide 5: Ethical Pharmaceuticals Market in Japan (by Company)

    Ethical Pharmaceuticals Market in Japan (by Company) Market growth ratio: -2.6% excluding hepatitis C drugs (From April 2016 to March 2017) and anti-PD-1 monoclonal antibodies YoY growth ratio (%) +3% -4% 10,379.0 ■ Japanese company JPY bn (based on NHI drug price) ■ Foreign-owned company 118.3 1 2

  6. Slide 6: Medical Megatrends (2010-2050) and Possibilities for Market Expansion

    Medical Megatrends (2010-2050) and Possibilities for Market Expansion 2010 2030 2050 Population Global 6.9 billion 8.3bn 9.3bn Japan 128.06 million 116.62mm 970.8mm 7.7% 12.0% 17.2% % of elderly 23.1% 31.6% 38.8% Number. of elderly 29.58 million 36.85 mm 37.67 mm - COPD becomes 1 of 4 leading - 10 m

  7. Slide 7: Major Changes in External Environment Since Launching Meiji Group 2020 Vision

    Major Changes in External Environment Since Launching Meiji Group 2020 Vision 1 Additional NHI price reductions on long-listed drugs Maximum 2% of additional reduction shall be applied to individual brand- name drugs that have not been appropriately replaced by generic drugs even after 5 years of li

  8. Slide 8: 2. Our Growth Strategy

    2. Our Growth Strategy 8 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings Co., Ltd. All rights reserved.

  9. Slide 9: Outlook for the FYE March 2018

    Outlook for the FYE March 2018 Increase Income -- Focus Resources on Core Domains, Steady Sales Growth and Low-Cost Operations (JPY bn) Consolidated Net Sales NHI Drug Price Revision Consolidated Operating Income 175.6 164.5 161.6 NHI Drug Price Revision 11.0 40.1 10.1 41.9 38.7 29.9 5.7 19.0 21.5 4

  10. Slide 10: Key Management Issues for FYE March 2018

    Key Management Issues for FYE March 2018  Maximize sales and profits of domestic ethical pharmaceuticals business Growth strategy  Improve profitability of international business  Conduct R&D that generates profits  Make agricultural chemicals and veterinary drugs business profitable  Optimize

  11. Slide 11: Grow Sales Share in Core Domains

    Grow Sales Share in Core Domains CNS disorders Antibacterial drug (Antidepressant + atypical antipsychotic drug markets) (％) No.1 (％) No.1 25 25 > 20% > 20% 20 20 No.1 17% No.4 14.1% 14.3% 15 15 10.4% 10 10 5 5 0 0 FY3/15 FY3/16 FY3/17 FY3/19E FY3/21E FY3/15 FY3/16 FY3/17 FY3/19E FY3/21E Copyrightⓒ

  12. Slide 12: Maximize Sales in CNS Disorders Domain

    Maximize Sales in CNS Disorders Domain Vast lineup of brand-name and generic drugs to capture top share Antidepressant drug Market YoY Atypical antipsychotic Market YoY market share change drug market share change 1 A 32.8% ↑ 1 H 29.3% ↑ 2 REFLEX 15.1% ↑ 2 I 19.2% ↓ 3 B 11.3% ↑ 3 J 10.3% ↓ 4 C 8.4%

  13. Slide 13: Maximize Sales of SYCREST and REFLEX

    Maximize Sales of SYCREST and REFLEX  SYCREST, Antipsychotic drug • Approved for long-term prescription on June 1, 2017 • Rapid onset and one of the promising choices for the treatment of acute stage of schizophrenia • Our sales estimates for FYE March 2018: JPY 4.0bn • Estimated peak sales: JPY 38

  14. Slide 14: Maximize Sales of BILANOA, Anti-allergic Drug

    Maximize Sales of BILANOA, Anti-allergic Drug • Approved for long-term prescription in December 2017 • New active ingredient, fulfills market needs (rapid-onset, long- lasting efficacy, safety) • Our sales estimates for FYE March 2018: JPY 4.2bn 14 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings C

  15. Slide 15: New Business Model for Generic Drugs Business

    New Business Model for Generic Drugs Business New strategy: categorize generic drugs into 2 groups Category Domain MR promotions Our strengths - Injectable Promotional 1. Specialty antibacterial activities for both generic drugs - Oral antibacterial - Respiratory disease Yes brand-name drugs - CNS d

  16. Slide 16: Improve Profitability of International Business

    Improve Profitability of International Business Sales of International Business ASEAN 43.4* 41.9 ←Impact of FX  Expand export business 4.7  Expand local sales at overseas 23.9 38.7 40.1 subsidiaries and sales partners  Strengthen presence in ASEAN FY3/15 FY3/16 FY3/17 FY3/18 * Excluding impact of

  17. Slide 17: R&D Pipelines

    R&D Pipelines R&D Pipeline (◆: compounds discovered in-house) FYE March 2018 FYE March 2019 FYE March 2020 Infectious diseases ME1111 [Antionychomycosis] ◆ P II ME1100 Arbekacin inhalation [HABP/VABP] ◆ Phase Ib (Overseas) OP0595 [β-lactamase inhibitor] ◆ *out-licensed to F.Hoffman-La Roche Phase I

  18. Slide 18: Make agricultural chemicals and veterinary drugs business profitable

    Make agricultural chemicals and veterinary drugs business profitable Agricultural Chemicals  ORYZEMATE and ZAXA : Cost reductions to improve margin and stable procurement of active ingredients  Develop pipelines R&D Pipeline (◆: compounds discovered in-house) FYE March 2018 FYE March 2019 FYE Marc

  19. Slide 19: Create Business Platform for Global Expansion

    Create Business Platform for Global Expansion  Reduce cost by optimizing distribution and production sites Low-cost production  Build system for low-cost, stable Stable supply procurement of active ingredients and raw materials High quality  Ensure competitive product quality to meet needs of dom

  20. Slide 20: Pursue Sustainable Growth

    Pursue Sustainable Growth Pursue sustainable growth by responding to; expanding medical demands and changes in operating environment 2026 while continuing to offer health value ASEAN Agricultural 2000s Chemicals Biopharma Generic drugs -ceuticals 1980s  Build low-cost, high-quality Drugs for CNS pr

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  22. Slide 22: Appendix

    Appendix 22 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings Co., Ltd. All rights reserved.

  23. Slide 23: Explanation of Terminology

    Explanation of Terminology  CAGR • Compound Average Growth Rate  CMO • Contract Manufacturing Organization • Company that is contracted by a pharmaceutical company to conduct drug manufacturing • Fulfills vital role of increasing productivity and reducing costs  CDMO • Contract Development and Ma

  24. Slide 24: Per Capita Medical Expenses by Age

    Per Capita Medical Expenses by Age (JPY 10 thousands) (Age) Medical expense total Expense breakdown 100～ 117.8 95～99 116.8 90～94 109.3 85～89 102.6 80～84 92.2 75～79 77.7 70～74 61.9 65～69 45.4 60～64 35.8 55～59 27.5 50～54 21.6 45～49 16.9 40～44 13.7 35～39 12.1 30～34 10.9 25～29 9.2 ■ Hospitalization + fo

  25. Slide 25: By 2050, Number of Deaths from Drug Resistant Bacteria will Reach 10 Million

    By 2050, Number of Deaths from Drug Resistant Bacteria will Reach 10 Million Number of deaths 25 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings Co., Ltd. All rights reserved. Source: Healthcare Infection Society UK

  26. Slide 26: Expand Sales of REFLEX Using Large-Scale Evidence

    Expand Sales of REFLEX Using Large-Scale Evidence GUNDAM: Genotype Utility Needed for Depression Antidepressant Medication Changes in total HAM-D17 score from baseline (primary endpoint) 0 Mirtazapine (n=69) -2 SSRI (n=72) * -4 -5.1 -6 *: p = 0.012 -6.9 -9.0 -8 Mirtazapine vs SSRI MMRM (mixed model

  27. Slide 27: Market Trends

    Market Trends ASEAN ethical drug market Global solid dosage form CMO market （BnUSD） 20 15 10 5 0 (Million USD) ■ Results in 2015 ■ Estimates in 2020 27 ｜ June 19, 2017 ｜ Copyright © 2017 Meiji Holdings Co., Ltd. All rights reserved. Source: BMI Research, visiongain2016

  28. Slide 28: Drug Production for Japanese Market in Overseas

    Drug Production for Japanese Market in Overseas 1. P.T. Meiji Indonesian Vial washing and sterilization Pharmaceutical Industries (P.T. Meiji Indonesian) 2 3  Established in 1974  Started to export ethical pharmaceuticals to Japan in 1994 1  Manufacturing penicillin drug after expanding facility

Meiji Holdings — Investor Day (June 2017) on 6ix