Domestic Sales of Prescribed Drugs (Reimbursement Price Basis)
Chugai was ranked 3rd in Japan to surpass ¥500 billion in domestic sales of prescribed drugs on reimbursement price basis (+1.9% year on year) due to the sales expansion of its own products, and strong market penetration of new products in-licensed from Roche. (January-December, 2022)
- The strategic alliance with Roche has enabled Chugai to in-license Roche’s groundbreaking products and efficiently develop and launch them in Japan, which has built a stable revenue base for Chugai.
- As for Chugai originated products, Enspryng®, launched in 2020, has been growing significantly as well as Actemra®, Alecensa®, and Hemlibra®. As for in-licensed Roche products, favorable penetration of new products, such as Polivy® and Evrysdi®, both launched in 2021, and favorable sales due to additional indication for the mainstay product Tecentriq® are the main drivers of sales growth.
Ratio of Operating Expenses to Revenues
Chugai has consistently maintained a low ratio of operating expenses to revenues compared with its industry peers in Japan.
- In anticipation of a rise in the ratio of cost of sales to sales due to the increase in products in-licensed from Roche, thorough cost-cutting measures were implemented, which reduced the ratio of operating expenses to revenues to a level comparable with the world’s leading pharmaceutical companies.
- As a general principle, we strive to keep the rate of increase in operating expenses within the rate of revenue growth.
Ratio of Operating Profit to Revenues
Chugai’s ratio of operating profit to revenues has risen due to the growth of Chugai originated products in both Japan and overseas.
- While we market in-licensed Roche products in Japan, we also out-license our products to Roche, which have a lower cost of sales to sales ratio.
- The ratio of operating profit to revenue increased by 0.1 percentage points year on year as the result of significant reduction in the ratio of operating expenses to revenues, despite of the rise in the cost to sales ratio due to a change in the product mix, etc.