Sustainability
Message from the President and CEO
We will aim for sustainable development
by setting the business recovery trend on a stable track
Milestone for SalonpasⓇ Commemorating the 90th Anniversary of Launch
SalonpasⓇ, which was launched in 1934, has marked the 90th Anniversary this year. We believe that our continued effort for “Delivering a Better QOL to the World” to respond to our stakeholders’ trust and expectation resulted in overcoming various social changes and commemorating this milestone. We would like to express our gratitude to our stakeholders.
In the 21st Century, society is changing at a dizzying pace. Most recently, as we have experienced COVID-19 pandemic and natural disasters and others triggered by climate change, we recognize them as significant issues that affect our customers’ QOL. In this context, we pushed ahead with the completion of the new research lab, the SAGA Global Research Center, the expansion of domestic logistics structure, and the enhancement of over- the counter (OTC) business, including the launch of SalonpasⓇ in Nigeria of Africa, the designated quasi-pharmaceutical product S-CUPⓇ and the quasi-pharmaceutical product LacalutⓇ, to work on ensuring stabler growth. As a result, we could achieve business results exceeding initial forecasts.
Progress of the Medium-term Management Policy
As for the new mission to be fulfilled, which was defined in the HX2025 (Hisamitsu Transformation 2025), its Seventh Medium-term Management Policy, sales growth rate (CAGR) achieved 7.4% compared to the target 5.0% or higher. The overseas sales ratio was 42.8% compared to the target of 50.0% or higher because overseas sales did well. We will make further efforts to achieve the target, including the development of new markets such as Africa in the future. As for the ROE target of 8.0% or higher, the actual ROE in fiscal 2023 was 5.4%, increasing successfully from the planning stage. We will work further to achieve the target by operational improvement, including the promotion of DX, and full-scale operation of the new R&D organization. In addition, we think it is also important to promote management with a stock price in mind. In consideration of not only ROE but also PBR and others, we will make efforts for management with the same perspective as our stakeholders through the proper management of dividends, acquisition of treasury shares and cross-shareholdings.
● Expand—“Pillars of Growth”
As for overseas expansion of SalonpasⓇ (Concentration of resources on priority regions, expansion of new SalonpasⓇ), sales steadily increased by 35.9% domestically and 15.5% overseas from the previous terms though there were some variations depending on the country/region. Furthermore, sales of OTC pharmaceuticals, including S-CUPⓇ, also increased both domestically and overseas, which demonstrates the effects of inbound demand in Japan and sales activities.
For Rx drugs, we are advancing the development of new growth areas, such as the expansion of the sales volume of ZICTHORUⓇ Tapes, which is a transdermal patch for persistent pain treatment, and the launch of APOHIDEⓇ Lotion, which is a treatment drug for primary palmar hyperhidrosis, in addition to the area of pain treatment.
● Exceed—“Overcome Challenges”
With regard to overseas expansion, as the overseas sales ratio has been rising by taking more careful measures in consideration of difference in the laws, regulations, culture, lifestyles, etc. of each country or region, we are expecting further growth, including expansion in Africa and the introduction of new products.
Including the expansion of XELSTRYMⓇ for Rx drugs in the United States and the development of HP-6050 using microneedles in Japan, as well as S-CUPⓇ, we will also work on the enhancement of our product portfolio further aiming for a better QOL.
● Enhance—“Strengthen Functions”
With the construction of the new research lab, the SAGA Global Research Center, completed in February 2024, the restructuring of the R&D organization is also steadily progressing. As the fundamental structure for driving business along with the promotion of digital transformation has been established, we believe that we will be able to push ahead with the Medium-term Management Policy steadily.Regarding the pipelines, we are steadily working on advancing them further as we did in the past through the restructuring of the R&D organization, including open innovation.
Measures for Sustainability
The importance of effort for improvement in sustainability-related fields, such as environmental issues, including climate change, and issues that may affect the fundamentals of our business, including human rights and human capital, is rising more and more. Regarding the functions of the Sustainability Promotion Committee that was established in 2021, we are always promoting the improvement and enhancement with an eye to the future for integration with management.
For environmental issues, we are promoting energy management on a global basis to reduce greenhouse gases (GHG) emissions. For challenges that cannot be solved by our company alone, we are pushing ahead with more socially effective measures, such as participation in the Smart Energy Project at Kiyohara Industry Park where our Utsunomiya Factory is located, to join projects actively in collaboration with communities or multiple companies.
In addition, we are also working on issues concerning risks on water resources and the conservation of biodiversity and ecosystems, which may also affect our business so that we can implement more specific measures. For issues related to products and services, we believe that it is important to take more advanced measures, such as “HELLO! eco!” *, based on detailed perspectives, including packages, containers and wrappers, logistics and disposal.
For a response to climate change, not only are our own proper responses to the GHG reduction in Scope 1 and 2 but also the reduction of Scope 3 impact throughout the lifecycles of products and services, ranging from the collection of raw materials to the use and disposal of the products and services, also important because the activities accounts for a large portion of total GHG emissions.
As the company headquartered in Tosu City, Saga Prefecture, which is rich in nature unlike large cities, we believe that we would be able to present an approach from a perspective that is different from that of urban areas, and thus we will discuss and work on every environmental issue from various perspectives for seeking the best solution.
In addition, while we realize that the launch in Africa is one of the important opportunities, we need to explore measures focusing on diversity considering differences in living environment, culture, and issues that would be unexpected from a domestic perspective. At the same time, we believe that it would be necessary to build a more transparent system also for personnel affairs so that we can develop and promote a global personnel strategy.
Considering that more strict systems are being required for various issues of sustainability, we will strive to be trusted as a corporate group that takes charge of delivering a better QOL to the world.
To Our Stakeholders
The Hisamitsu Pharmaceutical Group has moved forward together with our stakeholders, overcome difficulties, and stayed close to people’s lives and lifestyles since its foundation. Though there are a number of various issues today, we will continue efforts further with our Corporate Philosophy of “Delivering a Better QOL to the World” in mind at all times without forgetting the accumulations we have built up.
In order to promote this, it is important to deepen our engagement by disclosing appropriate information and sharing it with our stakeholders. We would like to make a further effort so that we can be a trusted partner by perceiving the status of various regions fully and working together with them. In this regard, we look forward to continuing to receive your support as ever.
