[Company analysis] Chugai Pharmaceutical Co., Ltd. (中外製薬)

「Chugai Pharmaceutical Co., Ltd. (中外製薬)」is a major Japanese pharmaceutical company and it became part of the「Roche group」 in 2002, through a strategic alliance with「Roche」, a major Swiss pharmaceutical company. Still this company is included in Japan's five largest pharmaceutical companies(「Takeda Pharmaceutical Company(武田薬品工業)」、「Astellas Pharma(アステラス製薬)」、「Daiichi Sankyo(第一三共)」、「Otsuka Holdings(大塚ホールディングス)」、「Eisai(エーザイ)」). In market capitalization basis,「Chugai Pharmaceutical」has 4th largest company in Japanese pharmaceutical industry. The number of consolidated employees is about 7,432.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Chugai Pharmaceutical Co., Ltd.
Company name (Japanese)	中外製薬
Date of establishment	Tuesday, March 10, 1925
Headquarters location	〒115-8543 東京都北区浮間5丁目5番1号
Capital	73,202
Consolidated sales	579,787
Consolidated operating profit	124,323
Consolidated total assets	919,548
Consolidated capital	756,529
Capital adequacy ratio	82.3%
Consolidated number of employees	7,432

 

 

 

2. Summary and Features

 
「Chugai Pharmaceutical 」was founded in 1925 under the name of「Chugai Shinyaku Co., Ltd.」 and was a wholesaler that imports and sells pharmaceuticals during its founding period. Then from 1927, this company started to working on full-fledged pharmaceutical manufacturing, and increasing the product variations. In the 1980s, they initiated the Research & Development of biopharmaceuticals. As a result, they were abled to launch "Tocilizumab(アクテムラ)", the first antibody drug in Japan in 2005, and currently secure the top share (27.3%) in the Japanese market. I am.
  

Currently,「Chugai Pharmaceutical 」handles the fields of "cancer", "bones and joints", and "kidneys" with the finest product lineup in Japan. Nevertheless, the reason why this company is not well known is that Chugai have concentrated in "specialty medicines" that require a doctor's prescription. In the past, they also handled general pharmaceuticals such as drinking water and insecticides. But as of 2004, the general pharmaceuticals business was completely sold, and now, only the ethical pharmaceuticals business has been the mainstay.

In 2005, they formed a strategic alliance with「Roche」, a global pharmaceutical company. When the alliance between「Roche」and「Chugai Pharmaceutical 」was announced, it was highly evaluated at the time as a new business model for Japanese pharmaceutical companies. Becuase each of companies would stay as a independent entity, while they can expand product variation and cooperate in strategy level.

In conclusion, this strategy seems to be a success. Through this strategic alliance,「Chugai Pharmaceutical 」were abled to expand their products globally to 110 countries, and add 15 kind of pharmaceutical products from 「Roche」to its lineup. In addition, since this alliance began, this company was able to cooperate in the R & D area, and also able to launch several new drugs over the last 15 years. By this, the market capitalization of Chugai was increased by almost nine times. Eventually, in December 2018, they achieved the largest profit in their history.

 

 

 

3. Major Business

 

■ Research, development, manufacture, sale and import / export of pharmaceuticals

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		491,780	534,199	579,787
Consolidated operating profit		76,884	98,934	124,323
Consolidated total assets		806,285	852,473	919,548
Consolidated net assets		646,497	692,897	756,529
Breakdown of sales	Japan domestic	379,700	388,400	389,200
	Oversea	79,500	94,000	127,900
	Tamiflu	13,500	16,900	10,700
	Royalty income	19,100	34,900	51,900