Integrated Report 2019 - Always Putting Patients First - Sawai Pharmaceutical
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Always Putting Patients First
2019
Sawai Pharmaceutical Co., Ltd.
Integrated Report
For the Year Ended March 31, 2019
Corporate
Philosophy Always Putting
Patients First
1 It is ’s mission to enable people to live healthy lives through
pharmaceutical products imbued with our whole-hearted dedication.
It is ’s challenge to grow in tandem with society through
2
innovation and cooperation, while pursuing creativity.
It is ’s hope that we will become an indispensable part of
3
society through our desire to be of service.
All of Sawai’s activities are based on
its Corporate Philosophy of “Always Putting Patients First.”
By providing a stable supply of conscientiously prepared,
high-quality, high-value-added generic pharmaceuticals to as many
patients as possible, we are fulfilling our social responsibilities.
We believe that doing this will contribute to the advancement
of people, society, and medical care.
Contents Sawai’s Value Creation Sustainability
The Potential of Sawai Pharmaceutical … 2 Sawai’s Sustainability …………… 16
Growth Path………………………………… 4 Environment ………………………… 18
Business Model …………………………… 6 Society ……………………………… 20
Message from the President …………… 8 Corporate Governance …………… 22
Special issue
Growth Strategy of Upsher-Smith …… 14
Editorial Policy
In addition to the presentation of its financial
and business information, Sawai has added
environment-related and other non-financial
information to produce an integrated report, based
on the international integrated reporting framework
of the International Integrated Reporting Council (IIRC).
Sawai’s Value Creation
This report presents information related to Sawai
and its consolidated subsidiaries for FY2018 (April 1,
2018 to March 31, 2019).
* Some information is presented that does not fall within this period.
Approach to Integrated Reporting
This report was prepared with the support of the
Company’s CSR Committee, which includes the
director in charge of CSR, and its Secretariat. It
presents relevant information that may materially
affect the ability of the Company to create value in
the short, medium, and long terms.
Definition of Materiality
This report contains information regarding the
Company’s strategy and performance, its future
outlook, as well as its creation of corporate value in
the short, medium, and long terms. In addition, this
report includes information on matters related to
finance, economic, social, environmental,
Sustainability
governance, and other matters.
Such information contained in this report has been
included based on judgments regarding materiality
from the points of view of assessments of quantity,
quality, risk, and opportunities as well as inputs from
dialogue with stakeholders. Information deemed to
be of particularly high importance has been
included.
Important Matters
High
importance
Reporting
items within
Level of importance to
the scope of
this report
stakeholders
Low Level of importance to Sawai High
Financial Section/Data importance
importance
Financial Section/Data
A Caution Concerning
Message from CFO ……………… 27 Forward-Looking Statements
Eleven-Year Summary …………… 28 This report contains forward-looking statements
regarding the Company’s plans, outlook, strategies,
and results for the future. All forward-looking
statements are based on judgments derived from
the information available to the Company at the
time of publication.
Accordingly, please be aware that the impact of
certain risks and uncertainties could cause the
Company’s actual results to differ materially from
any projections presented in this report.
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 1
The Potential of
Sawai Pharmaceutical
Stable supply
capability
With our industry-leading production system,
Number of
we are able to maintain a stable supply of high-quality product lines
pharmaceutical products. Approximately
740
individual selling
items
Production
capacity
Corporate
Approximately
15.5
billion tablets per year “Always Putting
Number of
personnel handling
product inquiries
(44,800 inquiries per year)
21
personnel
Provision of Number of Medical
Representatives (MRs)
information 436
We provide information about our products personnel
in a timely manner through three
main information channels.
*All data presented here is based on the actual performance of the Sawai Pharmaceutical Group (Japan) in FY2018.
2
Formulation
technology
Sawai’s Value Creation
R&D
expenditures We are constantly refining our designs to make
our pharmaceutical products even easier for
Approximately
7.6
patients to take.
billion yen Number of
*Calculated on an IFRS basis patents held
31
Philosophy
patents
Patients First”
Sustainability
Number of
tablets sold
Contribution Approximately
11.9
toward reducing
healthcare expenditures
Approximately
273.4
billion tablets
Social
billion yen
Financial Section/Data
contribution
Waste
recycling rate
48% We make a positive contribution to society
by providing high-quality and high,
value-added generic drugs.
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 3
Growth Path
Continuing to grow together with society as a leading
manufacturer of generic drugs
When generic drugs were virtually unknown, Sawai began persistently raising awareness.
The Company also anticipated the burgeoning demand for generic pharmaceuticals, arising from
promotional policies on the part of government, and successfully made prior investments in production
2007
Sawai established
facilities and personnel. These two factors have allowed Sawai to achieve rapid growth in generics in a new Corporate
Philosophy and Code
recent years. Moving forward, we will continue to help reduce the burdens placed on patients, of Conduct.
improve convenience, and continue to contribute to healthcare
financing by staying the course in the years to come. 2006
2003 New premises completed, Head Office
and Research Laboratories combined
Listed on the First Section of and relocated to current premises
the TSE (Yodogawa-ku, Osaka)
1948
Sawai Pharmaceutical Co., Ltd. incorporated in
Asahi-ku, Osaka
Sawai’s
History
Head Office and Research Laboratories
The company’s head office and factory. “Yoron
P,” one of Sawai’s main products at the time,
was a natural active vitamin preparation patented
1929 for pharmaceutical formulation technology.
2010
Sawai Pharmacy, the forerunner of Sawai
Pharmaceutical Co., Ltd., was founded in
Asahi-ku, Osaka City.
1965 Wholesale route sales
surpass those of agencies
becoming the sales driver
Sawai transformed itself from a
manufacturer of over-the-counter
medications into a manufacturer of
prescription medications.
1981 Ceremony for listing on the First
Modern Kyushu Factory, which at
that time surpassed those of original Section of the TSE 63.8
drug manufacturers, completed
Eye drops, our core product when
Sawai was founded 50.0
Sawai Pharmacy, the forerunner of Sawai Pharmaceutical Co., Ltd. 44.2
was established as a drugstore in 1929.
Subsequently, in the years before and after the Second World War when pharmaceutical 37.6
products were in short supply, Sawai transformed itself into a manufacturer of
over-the-counter pharmaceutical products in order to meet society’s needs.
Later, in response to various factors such as the introduction of the 35.8％
34.9％
universal health insurance coverage system in Japan, Sawai transformed
21.1
itself again to become a manufacturer of prescription medications.
Sawai has since grown to become one of today’s
leading manufacturers of generic drugs.
10.0
Net Sales (Billions of yen) Sawai’s Medium-Term Business Plans M1 TRUST
0.1 1.0
1929 1964 1971 1983 2003 2008 2009 2010 2011
1961 2002 2007 2008
Important Events Universal health Government identified the generic Introduction of premiums for
Introduction of incentives
in Society insurance coverage was
for doctors/pharmacists
drugs’ (volume basis) share*1 target generic dispensing systems
implemented in Japan. of 30% or more by March 2013 (addition to basic dispensing fee)
4
A world-leading
2017 generic drug
manufacturer
Acquired Upsher-Smith
Laboratories, LLC and
entered the U.S.
2013 market in earnest
Sawai’s Value Creation
New pharmaceutical plant at the Kanto
Factory completed
From left: Mitsuo Sawai, President, Sawai Pharmaceutical Co., Ltd., and
Rusty Field, President & CEO, Upsher-Smith Laboratories, LLC
184.4
*The Company has adopted International
2016 184.3 (Planned)
Financial Reporting Standards (IFRS)
from FY2017. Figures for FY2016 have
been restated based on IFRS for
Sanda Nishi Factory completed comparative purposes.
168.1
Pharmaceutical plant at the Kanto Factory
2014
Sawai’s antiplatelet product “CILOSTAZOL
OD Tablets ‘Sawai’” received the Asahi
Chemical Formulation Development Award
from the Pharmaceutical Society of Japan Sanda Nishi Factory
132.4
Generic drug market share (by quantity) (%)
2015
* Source: Ministry of Health, Labour and Welfare (MHLW)
123.4
The Pharmaceutical Develop-
ment Center was completed,
and the functions of the former 72.6％
Pharmaceutical Technology 80% or more
Center were consolidated into (Target)
Sustainability
the new Center 105.4 Goals to be set in
65.8％ September 2020 under
“Honebuto Policy 2017”
89.8
80.5
67.6
56.2％
8,780
Change in R&D expenses*
46.9％ 8,019 7,605 (Millions of yen)
7,238
6,109 15.5 15.5 Change in production capacity*
5,170 (Billions of tablets)
4,550 15.0
11.3 11.9
10.0 10.6 Change in sales volume*
39.9％ (Billions of tablets)
8.6
8.9
8.0 10.2
8.0
6.5 31
Financial Section/Data
26 Change in the number of patents held*
5.7 21 23 (Patents)
19
14
9 *All data presented here is based on the consolidated performance of the Sawai Pharmaceutical Group.(Japan)
M1 TRUST 2015 M1 TRUST 2018 M1 TRUST 2021
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021（March 31）
*1 Former numerical indicator share =
2013 2015 Generics/all pharmaceutical products
Government identified the generic Government identified the generic drugs’ (volume basis) share*2 *2 New numerical indicator share =
drugs’ (volume basis) share*2 target of target of 70% or more by mid-2017 and set the target of 80% or more Generics/(Originator drugs for which
60% or more by the end of March 2018 as quickly as possible during the period up to the end of FY2020 generic drugs exist + Generics)
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 5
Busine s s M od e l
Aiming to make a positive contribution toward the developm
sustainable society by helping patients realize improved
more satisfactory quality of life, while also reducing healthc
Social Issues Inputs
Manufactured Capital
●Production facilities (factories) 9（ 7 in Japan
2 in USA ）
Financial Capital
Rising
medical ●R&I credit rating A-
expenses
¥ 199.3 billion
●Equity attributable to ● Strong ties with wholesalers
owners of the parent
and retailers
● An impressive product lineup
of approximately 740 individual
Improvements selling items, and a strong brand
in quality Human Capital
of life (QoL)
3,131
●Number of employees
(Consolidated data including
Sales and
Upsher-Smith Laboratories) marketing
Access to ●Qualified pharmacists
healthcare (Consolidated data for Japan only,
does not include Upsher-Smith Laboratories)
268
The Intellectual Capital
Hyper-aging
society ●Research bases 3（ 2 in Japan
1 in USA ）
●Manufacturing know-how making possible
multi-item product mix, low-volume production
Safeguarding
the global
environment Social and Relationship Capital
Unmet ●Japan’s first-class pharmaceutical regulatory
system and universal health insurance coverage
medical system
needs ●The API manufacturers that support our ability
to maintain stable supply, and
the pharmaceutical distribution companies that
link us with medical institutions
Natural Capital (Annual)
(Consolidated data for Japan only, does not
include Upsher-Smith Laboratories)
●Energy input
(electricity) 95,124 MWh
●Water usage 438 thousand m3
6
ment of a The first to concurrently develop, launch, and consistently supply high-quality, high-value-
added generic drugs, Sawai provides conscientiously created products to patients through
health and a medical institutions. Our business model centers on efforts to achieve a sustainable growth
cycle—in realizing our Corporate Philosophy, we will increase our corporate value—by helping
care costs
Sawai’s Value Creation
patients realize healthy lives and by contributing to society by reducing medical expenses.
Value Cr eation Process Outcomes
● First-class ability to undertake
analysis of originator
drug patents
● The technological capabilities
needed to undertake development
Value Provided by Sawai
without infringing patents etc.
Always Putting Patients First
R&D
Achieving Our Putting Sawai’s Corporate Philosophy
CSR Reducing the burden
on patients from
medical costs
Sustainability
Medium-term
business plan
Corporate M1 TRUST 2021
Improving
Philosophy access to healthcare/
improving QoL
Contributing to a
sustainable health
Corporate
insurance system
governance Production,
stable supply,
and reliability
assurance
Financial Section/Data
● An industry-leading annual production
capacity of 15.5 billion tablets
● Extensive know-how as a specialist
generic drug manufacturer
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 7
Message from the President
Turning Dramatic Changes in the Business
Aiming for Sustainable Growth as We
President,
Representative Director
8Environment into Opportunities;
Sawai’s Value Creation
Enter the 100th Year Since Our Founding
Looking Back on Fiscal 2018
The dramatic overhaul of the drug pricing system in April before, the switch from long-term listed drugs
2018 was a systemic reform that brought the prices to generic drugs proceeded smoothly. In this
of long-term listed drugs and generic drugs closer environment, solid sales of core products such as
together. As a result, the patient copayment gap has Oseltamivir and Capecitabine, which are new exclusive
become narrower than ever, leading to industry-wide products brought to market (as of January 2019), as
concern as to whether the switch to generic drugs well as successful efforts to enhance cost
would actually occur. competitiveness through more efficient production and
However, when looked at more carefully, the impact multiple purchases, enabled us to achieve higher than
of these systemic reforms was negligible, and as expected sales revenues and operating income.
Sustainability
Consolidated Financial Highlights Millions of yen
FY2017 FY2018 Year on year
Composition Composition Growth
Amount Amount Amount
of sales of sales rate
Net sales 168,068 100.0％ 184,341 100.0％ 16,273 9.7%
Core operating income 31,118 18.5％ 37,738 20.5％ 6,620 21.3%
Operating income 22,209 13.2％ 25,798 14.0％ 3,588 16.2%
Profit before tax 20,251 12.0％ 25,666 13.9％ 5,415 26.7％
Profit attributable to
14,017 8.3％ 19,376 10.5％ 5,359 38.2%
owners of the parent
Financial Section/Data
Solid Core Product Sales Lead to Higher than
Expected Sales Revenues and Operating Income
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 9Message from the President
Future Outlook
Fiscal 2019 is expected to be quite challenging for the difficult to reach a 90% share, I think it will naturally
industry. Drug price revisions are expected after the rise to more than 85%. Furthermore, up to now generic
consumption tax hike in October 2019, and further drug makers have grown overall due to national policy
drug price revisions are planned in April 2020. This is protections, but going forward, we are entering
the first time that two drug price revisions will occur a period in which the capabilities of individual
in such a short period of time. If these challenging companies will be tested. In other words, there will still
conditions persist, some companies will leave the be a large growth market for Sawai, and we believe
market, making it a near certainty that market share that opportunities to further expand market share will
will be concentrated among major generic drug arise as competitors are eliminated.
makers. As these conditions provide us with an
opportunity to further demonstrate our strengths, Changes in the Micro/Macro Environment
Sawai sees a silver lining among even these dark Macro
clouds. environment ●Optimization of health expenditures
●Optimization of medical
changes
While we are also focused on “regional expenses through the through re-examination of
promotion of generic use prescription itself
comprehensive care systems” and other government ●Setting a target for generic ●Borderlessness of long-listed
initiatives, this does not change the fact that, substitution rate of 80% and generic drug products
●Quality and reliability ●Maintaining stable supply and high quality
ultimately, it is the physician who prescribes generic ●Stable supply system ●Strengthening the business structure through
drugs dispensed to patients at pharmacies. Thus, even integration and sales
if the system changes, we believe the impact will be Past Present Future
minor as long as we continue to build relationships of
●Original drug market segmentation and
trust with medical institutions as we have up to now. ●Patent expiration of major products
treatment personalized
●Growth opportunities for the
In Japan, it is thought that the goal for generic drugs generics industry as a whole
●Intensifying competition due to
commoditization and industry maturation
is an 80% share. The share of generic drugs in the ●Integration and growth in size of
●Increase in purchasing power pressures
dispensing pharmacies
due to pharmacy and distribution alliances
United States is 90%. In Japan, which is becoming a ●Predictability by setting
●Increase in uncertainty associated with the
roadmap Micro
super-aged society, the share of generic drugs will not environment
drastic drug pricing system reform
stop at 80% given the trend up to now. Even if it is changes
Synergies with Upsher-Smith
From the very beginning, we have engaged in ongoing through collaborations with Sawai, but it will take three
discussions regarding synergies with Upsher-Smith to four years until we can bring a product to market,
Laboratories, LLC (Upsher-Smith), which we acquired making it difficult to see any immediate effects of
in 2017. One of those is expanding the pipeline these efforts. As Upsher-Smith was also originally
involved in new drug production, they have new drug
Financial Highlights of U.S. Business development capabilities, new drug production
Millions of yen
equipment, and personnel that we think can be used
FY2017* FY2018 to create new synergies.
This fiscal year, the U.S. market appears extremely
Net sales 33,347 40,242
challenging. We will steadily increase our product
Core operating lineup and number of pipeline assets to continue
income 6,730 9,563
uncovering more opportunities for new synergies
Operating and pipelines than previously planned.
income
303 1,568
*June 1, 2017 to March 31, 2018
10Sustainable Development Goals (SDGs) and Social Contributions
Sawai is aware that its business of providing generic address all SDGs, so we focus on Goal 3 (see below)
Sawai’s Value Creation
drugs is in itself something that gives hope to people and tackle them one by one. Recently, our Minodronic
burdened by illness. As a manufacturer of products Acid Tablets won an award* for their patient-friendly
that affect human life, we conduct our work with packaging at a global contest. Efforts such as these
sincerity and in good faith so as not to cause anxiety are born from consideration for how we can make
to patients on the basis of supporting the SDGs so patients happy.
that no one is left behind. However, we cannot * See P.20
Measures Relating to the U.N. SDGs
The 17 Sustainable Development Goals (SDGs) and 169 individual targets that
were adopted by the United Nations General Assembly as part of “Transforming
our World: the 2030 Agenda for Sustainable Development” in 2015 offer
important recommendations on the kinds of action we need to take to safeguard
humanity’s future.
Sawai contributes
toward the
realization of
several of the SDGs through its business
activities. We have a particular focus on
Sustainability
Goal 3: “Ensure healthy lives and promote
well-being for all at all ages,” and we are
implementing measures that target 13
individual items.
Supply Stability: Our Commitment to the Social Infrastructure
Recent discontinuation of the sales and manufacturing respond with the collective wisdom of our employees
of high-profile generic drug products and recalls are to fulfill our responsibilities regarding supply stability.
shaking the confidence in supply stability. There are
various reasons for this, including profitability and
active pharmaceutical ingredients (APIs) origin issues.
*G1 Rule
In an era in which generic drugs account for 80%
This rule incrementally lowers prices of original drugs
of the market, and market share is becoming
(“long-term listed drugs”) to the same price as generic drugs
concentrated among major companies due to industry
Financial Section/Data
over a period of six years for products having a generic
reorganization and other factors, Sawai recognizes its replacement of 80% and more (G1) among long-term listed
tremendous responsibility of ensuring a stable supply drugs for which 10 years have passed since the initial
of products as part of social infrastructure. generic listing. Under this rule, long-term listed drugs can be
Furthermore, the appropriate preparation is required withdrawn from the market, in which case the generic drug
when accepting G1* long-term listed drugs. Thus, in manufacturer who wants to be a successor is responsible
addition to quality control, including APIs, and capital for increased production and information provision.
investment, we must organize our portfolio and
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 11Message from the President
Corporate Governance Enhancements
With regard to corporate governance, up to now executive appointments, dismissals and evaluations
our founder had been responsible for managing the are led mainly by external directors from an objective
company. We recognize that we had lagged somewhat perspective. We designed a system that works as an
behind current trends, but we have now arrived at a incentive taking compensation levels in the industry into
point where we are able to establish and operate a consideration, enabling us to recruit talented human
Governance Committee for Nomination and resources from outside the Company. We expect this to
Compensation. Discussions pertaining to corporate contribute to the enhancement of our corporate values.
Environmental Contributions
While we have long engaged in environmental and at present, environmental costs are increasing in
measures at our factories in Japan, we are also each process, leading to higher costs. However, we
constantly thinking about the API manufacturing cannot use APIs without this kind of environmental
process. investment. We also engage in green procurement, which
The pharmaceutical supply chain is extremely long, includes disclosing information on country of origin. *
* As of July 1, 2019
Strengthening positive impacts
● Thorough quality ● Contributing to the sustainability of the ● Ensuring a stable supply of generic drugs
Value chain assurance health insurance system
Raw materials Supply chain Procurement Operations Sales Distribution Product use Product waste
and logistics disposal
● Appropriate management of chemical ● Greenhouse gas emission controls ● Reduction of slow and
substances, water quality, and impact ● Effective utilization of resources obsolete (SLOB)
on the environment inventory
● Adoption of manufacturing machinery with lower CO2 emissions
Minimizing negative impacts
Sound Management and Employee Diversity
In addition to being recognized under the Ministry of in the workplace. However, we must strive to accomplish
Economy, Trade and Industry’s Health & Productivity further innovations and improvements with regard
Management Outstanding Organizations Recognition to employee health, an improved work-life balance,
Program (Large Enterprise Category) for two years employee workstyles and the creation of workplace
straight, Sawai was selected for inclusion in the MSCI environments amid a decline in the workforce. Also, from
Japan Empowering Women (WIN) Select Index, one of the perspective of diversity, we must move forward with
the indices used by the GPIF*, and in 2019, we were the recruitment of foreigners. As many APIs exist
selected for inclusion in the FTSE4Good Index Series, overseas, we must welcome talented foreigners into our
the global standard for ESG investment. These ranks to build out our international capabilities.
accomplishments reflect high esteem for our efforts * Japan’s Government Pension Investment Fund, the largest government
toward the promotion of health and women’s participation pension fund in the world.
12Identification of Materiality
Importance to stakeholders
Respect for human rights Enhancing access to medical treatment Contributing to reduction in healthcare costs Maintaining stable supply
Sawai’s Value Creation
Supply chain management Development of high-value-added pharmaceuticals products Product quality and safety Human talent cultivation and retention
Corruption prevention
Stakeholder satisfaction with the provision and disclosure of information Compliance
Diversity promotion
Maintenance of a safe, healthy workplace environment Fair, transparent transactions
Greenhouse gas emissions reduction
Recycling and waste control Governance enhancement Stakeholder engagement
Water use reduction Information management Realization of work-life balance
Biodiversity
Importance to Sawai
Human Resource Development
The “Guidelines Regarding Sales Information Provision Artificial Intelligence(AI) will replace half of all human
Activities” were announced in April 2019 and will go work, yet some work is valuable precisely because
Sustainability
into effect in October. These guidelines substantially humans perform it—I think MRs are one example of
restrict the information that Medical Representatives this. Thus, if we make human resource development
(MRs) are able to provide, which is why now more than one of Sawai’s strengths, I believe we will be able to
ever we need MRs that can build relationships of trust further enhance our brand power and organizational
with customers. We are entering an era in which capabilities.
Toward Sustainable Growth
Thanks to all our stakeholders, in 2019 we happy and never betray their trust and confidence in
commemorated 90 years since our founding. us. We must be consumed by this simple honesty in all
Everything Sawai has done up to now has been an our endeavors.
embodiment of our belief in “Always Putting Patients
First” by viewing the world through the eyes of the end
user.
I believe that, as a pharmaceutical manufacturing
Financial Section/Data
and sales company, continuing to constantly create
products that we put our hearts into will lead to
sustainable growth for the next 100 years—and the
100 years after that. Fortunately, Upsher-Smith has
also always been managed from the patient’s
perspective.
We must strive to ensure that this belief is steadily
passed on to the next generation. To this end, I myself,
and all employees going forward will pay meticulous
attention to our work as we carefully manufacture
pharmaceutical products. We will make consumers
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 13Special issue
Growth Strategy of Upsher-Smith
Message from Rusty Field
（Upsher-Smith）
President & CEO
Rusty Field
Approaching Our 100 Year Milestone declines. Competition remains intense across the
industry, and companies have had to adjust expecta-
In 2019, Upsher-Smith marks a century of delivering tions and focus on strategies to lower expenses, such
high-quality, life-enhancing medications to the patients as reductions in force, plant closures, product remov-
who need them. For one hundred years, we have als, and consolidation. In addition, the FDA has been
provided a high level of service, built strong industry accelerating ANDA approvals since 2014, a move
relationships, and ensured safe and reliable product which has led to increased competition as more
supply for all our partners in care. This rich history companies have entered the U.S. generics market.
provides a springboard to a successful future as we Despite these challenges, there are trends that could
work to bring an even greater diversity of products to have a positive impact on performance in the coming
a wider array of U.S. customers. years. Given the economic reality of high debt and
I am pleased to report that in FY2018, we achieved our falling margins, some companies have made financial
high-level financial goals, including EBITDA and cash decisions to exit certain product markets or delay
flow targets. We brought 75 percent of our approved approved product launches. In calendar year 2018, the
ANDAs to market in calendar year 2018, significantly FDA saw a record spike in ANDA withdrawals, while
expanding and diversifying our portfolio of products, only 261 of the 723 approved ANDAs had gone to
and we did so at a time when only 36 percent of market by December. These trends create new
FDA-approved ANDA products launched. opportunities for nimble companies to enter new
The year 2018 marked a turning point in the US markets, expand market share, and launch competi-
generics industry. After almost four years of intense tive products.
downward pricing pressure, generic price deflation Going forward, we will use a number of closely
has begun to stabilize in mid-single digit annual connected strategies to ensure we continue to grow,
Approved ANDA Product Launch Ratio in 2018 ＡＮＤＡ Approvals: Launched vs. Not Launched by Quarter
Launched as of Dec. 2018 Not launched as of Dec. 2020
200
177
150
U.S. generics 129
Upsher-Smith 108
industry
75
100 89
36 ％
％
50
55 48
68
49
0
2018 Q1 2018 Q2 2018 Q3 2018 Q4
Source: FDA, IQVIA
14beginning with expense reduction. We are right-sizing
our entire organization, increasing efficiencies and
aligning expenses with expected revenues. These
efforts to control costs will bring near-term net income
to a positive level and increase our cash flow so that
Sawai’s Value Creation
we can invest in future growth.
For Sustainable Growth
One of the ways we will invest is in acquisitions, as we
aggressively pursue both generic and brand product
opportunities. We are targeting branded products that
allow us to leverage our sales force’s existing brand
commercial capabilities. In July 2019, we acquired two
FDA-approved products from Dr. Reddy’s Laborato- the complex process of integration and to drive
ries, Ltd. These products, which are indicated for the Upsher-Smith toward an even more innovative,
acute treatment of migraine in adults, are an excellent growth-focused, and globally-oriented future.
fit with our current portfolio. They bring us new
dosage forms with their intranasal and injectable Looking Ahead to the Next 100 Years
delivery systems and allow us to drive faster growth in
a space with an established group of prescribers. At As Upsher-Smith grows, it is important that we
the same time, we are also investing in infrastructure continue to make community involvement a priority.
to increase our capabilities and remain competitive. The Company supports programs that help create a
Through an initiative known as Project Keystone, we sense of community between our company, pharma-
are building a modern, efficient, high-quality manufac- cists, and the people who rely on our therapies.
Sustainability
turing facility that will add significant net income to the Upsher-Smith is proud to sponsor awards annually
bottom line in three years. that recognize leaders in the field of pharmacy, actively
participate in and support numerous nonprofits, and
As we advance, we need to address several ongoing offer funds for corporate sponsorships, medical
challenges, beginning with our existing pipeline. While education grants, clinical research, and charitable
we are gaining our targeted share, prices and margins contributions. Our employees are active in the com-
have been lower than expected. We expect challeng- munity and are encouraged to volunteer with local
ing market conditions to continue but we have taken organizations as a way to better understand patients’
action to position the company for success. Going unmet needs.
forward, and with help from Sawai, we aim to deliver Upsher-Smith is fortunate to have a parent company
organic pipeline growth. We are increasing investment like Sawai, one that shares our focus on long-term
in new starts with the goal of driving growth for the success. We are also privileged to have the
next three to four years and beyond. In this way, we cash-on-hand we need to invest in our core business,
plan to achieve sustainable growth, as promised in our enhance our manufacturing and improve our process-
vision statement, and to Do More Good™ for more es. As we look ahead to the next 100 years, we’re
people, even in the face of an evolving market. inspired not only by what we have accomplished thus
We have greatly benefited in this work through the far, but also by the prospect of working with all of our
Financial Section/Data
contributions of our expatriate employees who have partners to deliver the products that will lead to a
crossed an ocean to deepen their own understanding healthier world.
of the US market, and bring their knowledge of Sawai,
its culture and goals to our Maple Grove headquarters.
This team has been an invaluable resource as we
integrate our operations with Sawai’s, and they play
a critical role in the transfer of information to our
colleagues in Japan.
I want to thank the entire expatriate team for going
above and beyond the call of duty to help us manage
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 15Sawai’s Sustainability
Sawai seeks to contribute to resolving
social issues and realize a sustainable society.
The rising cost of medical care has now become a serious social
issue as a result of the rapidly falling birth rate and aging society
as well as the availability of more advanced medical care.
As a specialized manufacturer of generic drugs that offers equivalent quality
and higher added value despite having a price lower than the originator drug, E
Developing in Harmony
we have worked to increase the use of generic drugs to lighten the burden with the Global
and improve convenience for patients through our Corporate Environment
Philosophy of “Always Putting Patients First.”
To continue practicing this philosophy, we aim to
enhance the Corporate Social Responsibility (CSR)
awareness of employees and contribute to the realization S G
of a sustainable society through efforts in our business and Contributing to Fair and Highly
Society Transparent
business processes which are based on our belief that Management
“the business activities of Sawai themselves are its greatest
contribution to society.”
CO2 Emission (kt-CO2) Water Usage (Thousand m3)
E 450 425 438 3
80 8 397
62 .1 62.7
60.3
60 6
Developing in 300 2.4 2
2.2
Harmony
3.6 1.9
with the Global 40 3.0 3.1 4
Environment 150 1
20 2
0 0 0 0
2017 2018 2019 (March 31) 2017 2018 2019 (March 31)
CO2 emission Basic unit emission Water usage Basic unit drainage
volume divided by (clean water and volume divided by
production volume industrial water) production volume (unit:
(unit: bil. tablets) hundred million tablets)
Waste Volume /
Chemical Substances, etc.（t）
Recycled Volume (t)
2,000 1,853 1,889 16 40
1,784
32
1,500 10.8 12 30 27
9.0 9.0 29
26
1,000 8 20 23 20
500 864 851 4 10
853
3 1 1
In realizing one of the tenets of its Corporate
Philosophy—“to enable people to live healthy 0 0 0
lives through pharmaceutical products”—and as 2017 2018 2019 (March 31) 2017 2018 2019 (March 31)
a provider of generic drugs, Sawai is working to Waste volume Amount of release and NOx
preserve the global environment in cooperation Basic unit discharge transfer of specified SOx
Recycled volume
with local communities and society as a whole. amount divided by chemical substances
production volume (unit:
hundred million tablets)
16Number of Employees Ratio of Female Employees
(Consolidated, Japan only) in Managerial Positions
(Persons) (%) （%）
S 3,000 8 8
2,641
2,502 2,568
6.0
828 6 5.5
830 6
Sawai’s Value Creation
2,000 773 4.5
Contributing to 5.6
Society 3.3 4.8 4 4
1,000
1,729 1,811 1,740 2 2
0 0 0
2017 2018 2019 (March 31) 2017 2018 2019 2020 (March 31)
Male Female Employee turnover Ratio of Female Employees Target: 8% and above by
in Managerial Positions the end of March 2020
Products and Stable Supply Reduction in Medical Expenses
(Items) (Cases) (Billions of yen)
800 720 740 300 300 274.6 273.4
680 253.4
250
600
239
200 200
193 184.3
400 181 150 168.1
100 100 132.4
200
50
0 0 0
Sawai contributes to society through its business 2017 2018 2019 (March 31) 2017 2018 2019 (March 31)
activities, and undertakes a wide variety of social
Number of Number of raw material Reduction in medical Sawai sales revenues
contribution activities for the benefit of local products supplier audits expenses
communities.
Sustainability
Number of Directors Ratio of Female Directors
(Persons) （%） （%）
G
10 25.0 16.0
25.0 25.0 25.0
8 20.0
14.0
Fair and Highly 12. 5 12. 5 12.5
6 15.0
Transparent 12.0
Management 4 8 8 8 10.0
10.0
2 5.0
0 0 0
2017 2018 2019 (March 31) 2017 2018 2019 (March 31)
Number of directors Number of directors Ratio of female directors
Number of Cases of Whistle- Total compensation allocation
Blowing (including consultation) for eligible directors
or Whistle Blowers (excluding external directors)
(Cases) (Millions of yen)
Financial Section/Data
4 400 375 361
17 348
16 16
3 72 74 66
300
2 4 200
3 285 271 266
1 100
To attain sustainable growth and increase
1
corporate value in the medium-to-long term, and
0 0
to work toward the realization of consistently fair,
2017 2018 2019 (March 31) 2017 2018 2019 (March 31)
highly transparent business, Sawai considers the
enhancement of corporate governance to be a Number of cases of whistle-blowing Fixed compensation Performance-based compensation
major management goal. (including consultation) or whistle blowers
Other
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 17Environment
■ Participation in the Japan Business and Biodiversity Partnership
Sawai supports the Declaration of Biodiversity released by Keidanren (Japan Business Federation) and strives to
conduct business activities with regard for biodiversity in line with the action policy of the Japan Business and
Biodiversity Partnership.
Action Policy of the Japan Business and Biodiversity Partnership
Commit to corporate management aiming at corporate activities in harmony with nature
1． Responsibility of management towards realizing a sustainable society
2． Global perspective Act from a global perspective on the biodiversity crisis
3． Voluntary actions Act voluntarily and steadily to contribute to biodiversity
4． Integrated environmental business management Promote integrated environmental business management
5． Revitalization of regions making full use of natural capital Contribute to regional revitalization utilizing natural capital, holding nature in high regard
6． Partnership Collaborate with relevant international and national organizations
Spearhead initiatives on environmental education and human resource development to create
7． Environmental education and human resource development a society that will nurture biodiversity
■ Participation in Conservation Activities for the Deepbody Bitterling, an Endangered Species
The Deepbody Bitterling (Acheilognathus longipinnis), observation was reported. The Deepbody Bitterling
a species of fish in the family of Cyprinidae, is an is an iconic fish of the Yodo River.
endangered species that is a Designated Natural Twice a year, Sawai assists in removing invasive fish
Treasure in Japan. Large numbers of Deepbody species and in river cleanup activities in the Johoku
Bitterlings used to be seen in the Yodo River, but their Wando area of Asahi-ku, Osaka City, near where
numbers have decreased so sharply that for a time no Sawai was founded.
18■ Cleanup Activities at Sawai Business Locations
Sawai’s Value Creation
Sawai implements company-wide cleanup activities on
an ongoing basis, cleaning the streets in the vicinity of
all Sawai business locations.
FY 2018 R e s ults
Total amount of
Total number Total number collected garbage
of times of participants
Approx.
40 926 1,700
liters
■ “Environment Magazine” Internal Newsletter
Sawai issues a monthly “Environment Magazine” 㻌
㻌
㻌
グ㍕䛧䛺䛡䜜䜀䛺䜙䛺䛔䝬䝙䝣䜵䝇䝖ไᗘ䛜䛒䜚䜎
䛩䚹㟁Ꮚ䝬䝙䝣䜵䝇䝖䛿ሗ䜢㟁Ꮚ䛧䛶䚸ሗฎ
⌮䝉䞁䝍䞊䜢䛧䛯䝛䝑䝖䝽䞊䜽ୖ䛷⾜䛖⤌䜏䛷 㻌
㻌
䛆ಖ㝤䛾ᴫせ䛇㻌
internal newsletter focused on environment-related
㻌 䛩䚹㻌 ಖ㝤㔠㢠㻌 Ṛஸ䞉ᚋ㑇㞀ᐖ 㻡㻜㻜 㻌
㻌 㻌 㻌 ධ㝔ಖ㝤㔠᪥㢠㻌 㻡㻘㻜㻜㻜 㻌
㻌 㻌 ㏻㝔ಖ㝤㔠᪥㢠㻌 㻟㻘㻜㻜㻜 㻌
ᖺ㸯㸰᭶ ➨㸲㸰ྕ
㻌 㻌 㻌
㹁㹑㹐ᆅ⌫⎔ቃࢳ࣮࣒
㻌 㻌
ᴾ
㜰ᕤሙ
ჷỤễẦẾẺὲႸẦỤỸἿἅᠴχᴾ
information to all employees for the purpose of
㻌
ᴾ
㻯㻿㻾ᆅ⌫⎔ቃ䝏䞊䝮䛷䛿䚸ᮇ䜒ᘬ䛝⥆䛝䚸♫ 㻌
҅ಊෙẦỤ൧ầẪễỦὲᴾ
ငಅࡑూཋᴾ ᩓ܇ἰἝἧỹἋἚ ୍ᩧΎᤲάື䜢᥎㐍䛧䛶䛔䜎䛩䚹㻌 㻌 㻌
̅ဇỉɟᢿ፯Ѧ҄ᴾ ㄡ䛷䜒ྲྀ䜚⤌䜑䜛㌟㏆䛺⎔ቃάື䛾୍⎔䛸䛧䛶䚸ᆅ 㻌 ᴟ䛷䛿ୡ⏺䛾୰䛷䜒䚸᭱䜒ᆅ⌫ ᬮ䛾ᙳ㡪
㻌 ᇦ䛾⨾䛻䜒㈉⊩䛧䜎䛧䜗䛖䚹㻌 㻌 䜢ཷ䛡䛶䛚䜚䚸ᴟᾏ䛾ị䛾㠃✚䛿 㻞㻜 ᖺ䛷⣙༙ศ
improving employees’ environmental awareness.
ᗫᲠ≀䛾ฎ⌮ཬ䜃Ύᤲ䛻㛵䛩䜛ἲᚊ䛾୍㒊䜢ᨵ Ύᤲ㛫䛿▷㛫䛷䛛䜎䛔䜎䛫䜣䛾䛷䚸䛣䜜䜎䛷ྲྀ 㻌 䛻ῶᑡ䛧䛶䛔䜎䛩䚹䜎䛯ị䛾ཌ䛥䛻䛴䛔䛶䜒䚸௨๓
ṇ䛩䜛ἲᚊ䠄ᖹᡂ 㻞㻥 ᖺἲᚊ➨ 㻢㻝 ྕ䠅➼䛾⾜䛻䜘 䜚⤌䜣䛰䛣䛸䛾↓䛔ᴗᡤ䜒ᮇ䛿㠀ᐇ䛾䛤᳨ 㻌 ୕⏣ᕤሙ
䛿䠐䚸䠑ᖺ௨ୖ䜒⁐䛡䛺䛛䛳䛯ཌ䛔ị䛜ᗈ䛟ᴟᾏ䜢
䜚䚸≉ู⟶⌮⏘ᴗᗫᲠ≀䛾ከ㔞ฟᴗ⪅䛻䛴䛔 ウ䜢䛚㢪䛔䛧䜎䛩䚹䛣䜜䛛䜙ᐮ䛟䛺䜚䜎䛩䛾䛷䚸㢼㑧 㻌 そ䛳䛶䛔䜎䛧䛯䛜䚸᭱㏆䛷䛿䠍䚸䠎ᖺ䛾㛫䛻ฟ᮶䛯ⷧ
䛶䛿䚸㻞㻜㻞㻜 ᖺᗘ䛛䜙㟁Ꮚ䝬䝙䝣䜵䝇䝖䛾⏝䛜୍㒊 䜢䜂䛛䛺䛔䜘䛖㜵ᐮᑐ⟇䜒ᛀ䜜䛪䛻䚹㻌 㻌 䛔ị䛜ከ䛟ぢ䜙䜜䜛ᵝ䛻䛺䜚䜎䛧䛯䚹㻌
⩏ົ䛥䜜䜎䛩䚹䠄⾜᪥ᖹᡂ 㻟㻞 ᖺ䠄㻞㻜㻞㻜䠅ᖺ 㻠 ᭶ 㻝 㻌 㻌
Environment Magazine shares environment-related
ị䛾ኴ㝧ග䛾ᑕ⋡䛿⣙ 㻥㻜䠂䛷䛩
᪥䠅㻌 䕔㻣㻝 ᮇ㻌 䠓᭶ୗ᪪䡚䠍䠍᭶䜎䛷䛾ᐇ≧ἣ㞟ィ㻌 㻌 䛜䚸ᾏỈ㠃䛾ᑕ⋡䛿 㻝㻜䠂䛧䛛䛒䜚䜎
㟁Ꮚ䝬䝙䝣䜵䝇䝖䛾⏝⩏ົᑐ㇟⪅䛸䛿䚸๓䚻ᖺ 㞟ࢦ࣑ 㻌㻌 䛫䜣䚹ị䛜⁐䛡䛶㟢ฟ䛧䛯ᾏỈ㠃䛛䜙
ᗘ䠄㻞㻜㻝㻤 ᖺᗘ䋻ᮇ䛷䛩䠅䛻≉ู⟶⌮⏘ᴗᗫᲠ≀ ⿄ᩘ 㻌
ᐇ᪥ ᴗᡤྡ ཧຍேᩘ 㛵ᮾᕤሙ
ᾏ䛜 䜎䛳䛶䛔䛝䚸ᾏ䛜 䜎䜛䛸ị䛜⁐䛡䜛䛸䛔䛖ᝏ
㸦45L
䠄㻼㻯㻮 ᗫᲠ≀䜢㝖䛟䠅䜢䠑䠌䡐௨ୖฎ⌮ጤク䛧䛶䛔䜛 㻌 ᚠ⎔䛷䚸䛹䜣䛹䜣ị䛜ᑡ䛺䛟䛺䛳䛶䛔䛝䜎䛩䚹㻌
⟬㸧
measures undertaken internally and annual targets,
ᴗሙ䛜ᑐ㇟䛸䛺䜚䜎䛩䚹⩏ົᑐ㇟⪅䛸䛺䜛ᴗሙ 㻌
2018/7/27 ୕⏣ᕤሙ 8 1 䜎䛯䚸⛅䛻䛺䛳䛯䛸䛝䛻䜒ᾏỈ ᗘ䛾ୖ᪼䛻䜘䜚䚸
䛿䚸㻞㻜㻞㻜 ᖺ 㻠 ᭶䜎䛷䛻 㻶㼃㻺㻱㼀㻔ሗฎ⌮䝉䞁䝍䞊㻕 2018/7/31 2 1 㻌 ị䛜ᙇ䜚ጞ䜑䜛ᮇ䛜㐜䜜䚸స䜙䜜䜛ị䛾㔞䜒ῶᑡ
㜰ᕤሙ
2018/8/31 9 1 㻌
Sustainability
䜈䛾ຍධ䜔㟁Ꮚ䝬䝙䝣䜵䝇䝖䛻ᑐᛂ䛧䛯ฎ⌮ᴗ⪅䛸 ୕⏣ᕤሙ 䛧䚸ᾏỈ䛾⇕䛷ᴟ䛾Ẽ 䜒ୖ᪼䛧䛶䛔䜎䛩䚹㻌
䛾ዎ⣙⥾⤖䛾‽ഛ䛜ᚲせ䛷䛩䚹㻌 2018/9/27 ᮏ♫࣭◊✲ᡤ 71 6 㻌 ᴟᇦ䛿ᆅ⌫ᖹᆒ䛾䠎ಸ௨ୖ䛾᪩䛥䛷 ᬮ䛜
≉ู⟶⌮⏘ᴗᗫᲠ≀䜢ከ㔞䛻ฟ䛧䛶䛔䜛ᴗ 2018/9/28 ୕⏣ᕤሙ 8 1 㻌 㐍䜣䛷䛔䜛䛯䜑䚸㻞㻝㻜㻜 ᖺ䜎䛷䛻ᴟ䛿 㻝㻜䉝䜒Ẽ
and covers international and national environmental
ሙ䛿䚸ᮇ䠑䠌䡐䜢㉸䛘䜛䛛䛹䛖䛛䚸ὀど䛧䛶䛚䛔䛶䛟 2018/10/3 㛵ᮾᕤሙ 42 10 㻌 ᕞᕤሙ
䛜ୖ᪼䛩䜛䛸䛔䜟䜜䛶䛔䜎䛩䚹ୡ⣖༙䜀䛠䜙䛔䜎
2018/10/10 㛤Ⓨࢭࣥࢱ࣮ 14 1 㻌
䛰䛥䛔䚹㻌 䛷䛻ị䛿䜋䜌↓䛟䛺䜚䚸䛩䛠 㻯㻻㻞 ฟ䜢Ṇ䜑䛯䛸
2018/10/12 ᕞᕤሙ 82 12
㻌 㻌 䛧䛶䜒䚸ኚ䜢ᢚ䛘䜙䜜䛺䛔䛸䛣䜝䜎䛷᮶䛶䛧䜎䛳䛶
2018/10/26 ୕⏣ᕤሙ 9 1
䛆⏝ㄒゎㄝ䛇㻌 䛔䜎䛩䚹㻌
䐟≉ู⟶⌮⏘ᴗᗫᲠ≀㻌
2018/10/31 㜰ᕤሙ 3 1 ἾἁἼỹὊἉἹὅ̬ᨖỆьλὲᴾ
problems and topics in an easy-to-understand format.
2018/11/6 㛤Ⓨࢭࣥࢱ࣮ 22 1 㻌 䛸䛣䜝䛜䚸䛣䜜䛿᪥ᮏ䛻ఫ䜐⚾䛯䛱䛻䛿㛵ಀ䛺
⇿Ⓨᛶ䚸ẘᛶ䚸ឤᰁᛶ䛾䛒䜛䜒䛾㻌 2018/11/16 4 1 㻌 䛔㐲䛔ᡤ䛾ヰ䛷䛿䛒䜚䜎䛫䜣䚹ᴟ䛾ị䛜䛺䛟䛺䜛
ᮾி➨ᨭᗑ
䜰䝉䝖䝙䝖䝸䝹䚸䜰䝹䝁䞊䝹䚸䜰䝉䝖䞁䚸䝖䝹䜶䞁➼㻌 2018/11/21 ᮏ♫࣭◊✲ᡤ 44 5 㻝㻝 ᭶ 㻝㻥 ᪥㛤ദ䛾 㻯㻿㻾 ጤဨ䛻䛶䚸䝺䜽䝸䜵䞊䝅䝵 䛣䛸䛷䚸ᾏ㠃 ᗘ䛜ୖ᪼䛧䚸ᴟ䛾㧗Ẽᅽ䛜ጾຊ䜢
䐠㟁Ꮚ䝬䝙䝣䜵䝇䝖㻌 2018/11/22 㜰ᕤሙ 10 1 䞁ಖ㝤䜢䛩䜛䛣䛸䛜ᢎㄆ䛥䜜䜎䛧䛯䚹ᅜ䛾 ᙉ䜑䜛䛣䛸䛷䚸೫す㢼䛾⺬⾜䛜ᙉ䛟䛺䜚䚸᪥ᮏ䛾Ẽ
⏘ᴗᗫᲠ≀䛾⾜䛝ඛ䜢⟶⌮䛧䚸ἲᢞᲠ䜢ᮍ↛ 2018/11/30 㜰ᕤሙ 4 1 ᴗᡤ䛻䛶ᐇ䛥䜜䜛Ύᤲάື➼䛻䛚䛔䛶䜒䚸ಖ㝤䛾 ㇟䛻ᙳ㡪䜢䛘䜎䛩䚹᪥ᮏ䛾ኟ䛿㧗Ẽᅽ䛜䛧
䛻㜵Ṇ䛩䜛䛯䜑䚸ฟᴗ⪅䛛䜙㐠ᦙ㞟ᴗ⪅䚸 2018/11/30 ୕⏣ᕤሙ 9 1 ᑐ㇟䛸䛺䜚䜎䛩䛾䛷䚸άື⤊ᚋ䛻䛿䚸ᚲ䛪ཧຍே ⊛ᬬ䛻䚸䛿ᴟ䛾ᐮẼ䛜༡ୗ䛧䜔䛩䛟䛺䜚ཝᐮ䚸
2018/11/30 㮵ᓥᕤሙ 35 60 ᩘ➼䜢ሗ࿌᭩䜈ධຊ䛧䛶㡬䛟䜘䛖䛚㢪䛔䛧䜎䛩䚹㻌
୰㛫ฎ⌮ᴗ⪅䚸᭱⤊ฎศᴗ⪅䜎䛷䛾䛭䜜䛮䜜䛜 㞷䛻䛺䜛ഴྥ䛜䛝䛟䛺䜚䜎䛩䚹䛣䛣᭱㏆䚸᪥ᮏ䛾
ྜィ 376 105 㼔㼠㼠㼜㼟㻦㻛㻛㼓㼛㼛㻚㼓㼘㻛㼒㼛㼞㼙㼟㻛㼦㻰㻴㼁㻴㼥㻠㼛㻥㻡㼕㼝㼓㻹㼐㻜㻞㻌
ฎ⌮ᩘ㔞➼䜢䠓䡚䠔ᯛ」䛾䝬䝙䝣䜵䝇䝖ఏ⚊䛻 ␗ᖖẼ㇟䛜㢖Ⓨ䛧䛶䛔䜎䛩䛜䚸ᴟᅪ䛾 ᬮ䛾
୍䚸άື䛻䜿䜺➼䛥䜜䛯ሙྜ䛿⥲ົ㒊⥲ົ䜾 ᙳ㡪䛜㛵䜟䛳䛶䛔䜛䛸䛿䚸㦫䛝䛷䛩䚹㻌
䝹䞊䝥䜎䛷䛤㐃⤡䛟䛰䛥䛔䚹㻌
■ Reducing Waste
Sawai is taking steps to reduce the amount of industri- recorded, substantially exceeding the target. Two
al waste sent for final disposal at landfills. The target more factories also achieved zero emissions, and
rate for final disposal at landfills from factories in Sawai continues to strive to reach the goal of zero
FY2018 was set at 4.37%, with an actual rate of 2.75% emissions.
Aiming to Realize a Sustainable Society
VOICE
To realize a sustainable society as set forth in Chapter 7 of the
Sawai Code of Conduct, “Alongside the Global Environment,”
the CSR Global Environment Team plans and implements
Financial Section/Data
activities to raise awareness for environmental problems among
employees so that they can make contributions to conserving
the global environment. Sawai strengthens employees’
awareness and understanding through the monthly “Environment
Magazine” internal newsletter, and is working to create conditions
that make it easier for employees to participate in volunteer
activities, including activities for biodiversity, through enrollment
in volunteer insurance in case of injury while volunteering.
Sawai’s CSR Global Environment Team
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 19Society
■ Received WorldStar Award
Sawai received a WorldStar Award in the global includes space to write the date of when the medicine is
WorldStar Competition sponsored by the World taken and stickers to put on a calendar so patients do
Packaging Organisation (WPO) for our Minodronic Acid not forget to take the medicine. Sawai will continue to
Tablet 50 mg osteoporosis medicine it manufactures design packaging
and sells. This packaging also won the Accessible and innovate
Design Packaging Award in the Japan Packaging pharmaceutical
Contest 2018, and an Asia Star 2018 Award in the preparations to make
Consumer Package category. them easier to use
The packaging was recognized both in Japan and for patients,
globally for allowing even elderly patients without a lot of especially the elderly
strength to access tablets just by folding the cardboard and people with
packaging. In addition, the front of the packaging disabilities.
■ Sawai Web School
Sawai is striving to create environments in which highly Department database to manage course recipients, and
capable people with the desire to improve themselves is very user-friendly, with courses able to be taken on
can make contributions to the company. smartphones and other devices
The Sawai Web School was introduced in 2017 as outside of the company. Sawai
an internal education system. This system was fully Web School is used for
implemented in FY2018, and in the one year since its education and training by the
introduction, a total of approximately 10,000 employees Human Resource Department as
have taken e-learning courses, providing the equivalent of well as those organized by other
10 times the educational opportunities as group trainings. divisions, including MR training
The system is closely linked to the Human Resource and compliance education.
■ Efforts to Eradicate Infectious Diseases
Sawai recognizes the importance of taking action to fight donation and charity activities. Sawai received a letter
tuberculosis, AIDS, and other infectious diseases, which of appreciation for its contributions from the Japan
is also set as one of the targets of the SDGs. Sawai Anti-Tuberculosis Association, which organizes the
has been offering support for the production of and Double-Barred Cross sticker
donations for educational videos about tuberculosis movement aimed at
countermeasures and AIDS prevention to create eliminating tuberculosis and
understanding not just among medical practitioners, but other lung diseases to create
also among patients and their families. In addition, Sawai a healthy and bright future.
offered support for the production of the medical-themed The Double-Barred Cross sticker movement
movie “For Global Health” and has conducted other character “Seal Boya”
20■ Labor–Management Cooperation
Sawai’s Value Creation
On September 27, the Labor–Management Work Style Amid predictions of a highly challenging business
Reform Committee, which was formed in FY2018, environment surrounding the pharmaceutical industry
proposed the following six solutions to issues to from the effects of the
President Sawai. major drug pricing
[Issues to address] reform, labor and
● Revision of the work shift system to meet operational needs management are working
● Shortened work hours with higher efficiency together to resolve the
● Making specific tasks less dependent on specialized individual skills issues of improving
● Strengthening capacity development productivity and
● Encouraging greater organizational metabolism
promoting work–life
● Facilitating greater information sharing among organizations and From left: President Mitsuo Sawai and
balance. Chairman Toshitaka Niiyasu of Sawai
between management and staff levels Pharmaceutical Workers Union
■ Selected for the MSCI Japan Empowering Women (WIN) Select Index
Sawai was selected for the MSCI Japan Empowering retaining, and promoting women and advancing
Women (WIN) Select Index, which is one of the indices diversity are selected for the MSCI Japan Empowering
used by the Government Pension Investment Fund Women (WIN) Select Index.
Japan (GPIF), an independent administrative institution Sawai actively strives to advance diversity, generate
and one of the world’s largest public fund investors, new ideas and value, and create a corporate culture
to make investments based on ESG initiatives, of openness with a sense of unity through
Sustainability
an indicator of non-financial value. communication and teamwork based on respect
Companies that lead their industry in employing, for one another’s positions.
■ Videos Aimed at Solving Social Issues
Viewing the falling birth rate, aging society, and longer video discusses conversations parents and children
healthy life expectancy as a social issue, Sawai has should have at length about parents’ aging, which are
created and released related videos online with the goal usually difficult conversations
of contributing, even if in some small way, to solving this to have, based on a medical
issue. questionnaire that got people
One video shows how to make the act of taking medicine to talk candidly about their
more enjoyable for children who resist taking medicine. feelings. Sawai will continue
Sawai made this video with the wish of making this time to make these offerings to
even a little more fun and alleviating this worry for society to help solve social
parents who are raising the next generation. Another issues.
Pink Ribbon Advisor Certification
Financial Section/Data
VOICE The members of the Oncology and Hospital Sales Promotion Office have received Pink
Ribbon Advisor certification from the Japan Society of Breast Health, an authorized
nonprofit organization, for the purpose of deepening understanding for breast cancer
and providing information with consideration for the feelings of breast cancer patients.
Sawai intends to continue undertaking activities not only to increase people’s knowledge
about breast cancer, but also to provide more empathetic care that takes into account
the feelings of patients, their families and other loved ones.
Some of the Oncology and Hospital Sales Promotion Office members receiving their Pink Ribbon Advisor certification
Sawai Pharmaceutical Co., Ltd. Integrated Report 2019 21Corporate Governance
Board of Directors
Chairman, Representative Director President, Representative Director Director, Senior Managing Executive Director, Senior Executive Officer, and
Officer, Vice President of Corporate Vice President of Corporate Administra-
Strategy Department and Supervisor of tion Division
Research & Development Division
Hiroyuki Sawai Mitsuo Sawai Kenzo Sawai* Kazuhiko Sueyoshi*
A p r .1 9 6 3 Joined the Company J a n .1 9 8 9 Joined the Company A p r .1 9 9 5 Joined Sumitomo Pharmaceuti- A p r .1 9 8 0 Joined The Sumitomo Bank,
A u g .19 6 8 Managing Director J u n . 2 0 0 0 Director, Deputy Vice President cals Co., Ltd. (currently Sumitomo Limited (currently Sumitomo Mitsui
Dainippon Pharma Co., Ltd.)
A p r .1 9 7 8 Representative Senior Managing of Sales Division, and General A p r. 2 0 0 1 Joined the Company Banking Corporation)
Director Manager of Sales Planning J u n . 2 0 1 0 Director, Vice President of A p r . 2 0 1 2 Joined the Company
Se pt.1988 President, Representative Director Department Corporate Strategy Department General Manager of Controller
J u n . 2 0 1 3 Director, Senior Executive Officer,
J u n . 2 0 0 8 Chairman, Representative Director J u n . 2 0 0 2 Managing Director, Vice President Department
Vice President of Corporate
(incumbent) of Sales Division, and General Strategy Department, and Deputy J u n . 2 0 17 Executive Administration of the
Manager of Sales Planning Vice President of Sales Division Board of Upsher-Smith
Department J u n . 2 0 17 Director, Senior Managing (incumbent)
Executive Officer, Vice President
J u n . 2 0 0 5 Senior Managing Director, Vice of Corporate Strategy Department F e b . 2 0 18 Executive Officer,
President of Sales Division and Supervisor of Sales Division Deputy Vice President of
J u n . 2 0 0 8 President, Representative Director President, Member of the Board of Corporate Administration Division,
Sawai America LLC (incumbent)
(incumbent) Chairman of the Board of and General Manager of Controller
Upsher-Smith Laboratories, LLC Department
(hereinafter referred to as J u n . 2 0 1 8 Director, Senior Executive Officer,
“Upsher-Smith”) (incumbent) and Vice President of Corporate
J u n . 2 0 1 8 Director, Senior Managing
Executive Officer, Vice President Administration Division
of Corporate Strategy Department (incumbent)
and Supervisor of Research &
Development Division (incumbent)
Mr. Hiroyuki Sawai is well-versed in the generic Mr. Mitsuo Sawai is well-versed in the generic Mr. Kenzo Sawai is well-versed in the generic Mr. Kazuhiko Sueyoshi has expertise in finance
drug business, having been honored with The drug business. The Company appointed him to drug business. The Company appointed him to and accounting, and the Company appointed
Order of the Rising Sun, Gold Rays with Neck drive enhancements to the corporate value of utilize his strategic planning and implementation him to contribute deep insights into corporate
Ribbon in recognition of his experience working the Sawai Group by building relationships with abilities to support the Sawai Group’s growth, management based on his extensive experience
on the dissemination of generic drugs and business partners and other stakeholders and medium- to long-term business plans overseas and being well-versed in compliance, CSR and
related educational activities for many years conducting management in line with Sawai’s strategies, alliances and advertising efforts. all other aspects of corporate governance.
in Japan. corporate philosophy.
Director,Senior Executive Officer,Vice External Director External Director
President of Reliability Assurance Division
Toru Terashima* Nawomi Todo Masatoshi Ohara
A p r .1 9 8 4 Joined Sumitomo Chemical J u n .1 9 8 4 Obtained Medical License A p r .1 9 7 9 Registered as a lawyer at Osaka
Company, Limited J u l . 1 9 8 4 Staff Doctor at Osaka University Bar Association
O c t .1 9 8 4 Joined Sumitomo Pharmaceuti- Hospital Joined Kikkawa Sogo Law Offices
cals Co., Ltd. (currently Sumitomo (currently Kikkawa Law Offices)
J u l . 1 9 8 7 Staff Doctor at Osaka Police
Dainippon Pharma Co., Ltd.) (incumbent)
J a n . 2 0 1 6 Joined the Company Hospital, Association of Osaka
A u g .19 8 6 Attorney admitted in the State of
J u n . 2 0 1 6 Corporate Officer, and Vice Police Foundation
New York, the U.S.
President of Reliability Assurance J u l . 1 9 9 0 Staff Doctor at Nissay Hospital A p r. 2 0 0 4 Member of the Board of Directors
Division J a n . 2 0 0 2 Staff Doctor at Osaka-tetsusho for the Kinki Federation of Bar
J u n . 2 0 17 Director, Corporate Officer, Health Insurance Society Associations
Vice President of Reliability (incumbent) A p r . 2 0 17 The President of Osaka Bar
Assurance Division
J u n . 2 0 1 8 Director, Executive Officer, Vice J a n . 2 0 0 7 Obtained Certified Occupational Association, the Vice President of
President of Reliability Assurance Physician Qualification of Japan Japan
Division, and General Marketing Medical Association Federation of Bar Associations
Compliance Officer (incumbent) J u n . 2 0 1 5 External Director of the Company J a n . 2 0 1 8 External Director of Teijin Frontier
J u n . 2 0 1 9 Director,Senior Executive Co., Ltd. (incumbent)
(incumbent)
Officer,Vice President of Reliability J u n . 2 0 1 9 External Director of the Company
Assurance Division (incumbent)
Mr. Toru Terashima is in charge of general Ms. Nawomi Todo has extensive professional Mr. Masatoshi Ohara has extensive experience
manufacturing and sales. The Company knowledge and experience as a medical doctor. and professional knowledge as a lawyer in the
appointed him to provide professional The Company appointed her to continue United States and Japan. The Company
knowledge and business experience in the providing beneficial advice to patients and appointed him to utilize his experience as an
research, development, and production of, and physicians from an independent perspective. external director at other companies to provide
regulatory affairs related to, pharmaceuticals. beneficial advice from an independent
perspective.
＊Concurrently as officers
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