We would like to express our sincere gratitude to our shareholders for their understanding and commitment to our business.
The Corporate Policy of the Shionogi Group is to "supply the best possible medicine to protect the health and wellbeing of the patients we serve." We believe that the global implementation of this Company Policy will not only benefit patients, but also benefit all of our stakeholders, including our shareholders and investors.
In developed countries, policies aimed at improving the precarious financial position of health insurance systems are being advanced against a background of aging populations and unstable economic conditions. Meanwhile, newly industrialized markets, which had been expanding rapidly, are showing signs of slowing growth. Furthermore, in the Japanese domestic prescription pharmaceuticals market, the government is pressing forward with policies to control drug prices, including those promoting the use of generics. The operating environment for the pharmaceutical industry is therefore becoming progressively more challenging, with continued rapid change anticipated globally, and, as a result, increasingly more intense international competition for survival amongst companies.
To pursue consistent growth while responding quickly to the aforementioned rapid changes in the operating environment, the Group made a fresh start in April 2014 by formulating a new Medium-Term Business Plan, Shionogi Growth Strategy 2020 (SGS2020), which sets out a clear vision for growth throughi fiscal 2020, ending March 31, 2021.
To realize our vision to “Grow as a drug discovery-based pharmaceutical company”, we will dedicate our efforts to research and development to create innovative medicines required for patients. The Group aspires to become a global pharmaceutical company supplying the world with new drugs and the associated medical benefits arising from our research and development activities.
With the knowledge and confidence built during the prior medium-term business plan period, the Group anticipates smoothly overcoming the Crestor Cliff (expected sales and profit reduction due to the decline in Crestor royalties), the impact of which was blunted and partially advanced from fiscal 2016 to fiscal 2014 as a result of the modification of the agreement with AstraZeneca. We will also achieve continued growth by setting clear priorities and focusing our resources on those sales and therapeutic areas with the greatest potential, and through continued improvement of our business operations.
We would like to thank you for your interest in our company and our products and your continued support will be greatly appreciated.