Domestic Sales of Prescribed Drugs (Reimbursement Price Basis)
Chugai was ranked 4th in Japan due to the sales expansion of its own products, and strong market penetration of new products in-licensed from Roche. (Financial results FY2019)
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.
Along with Chugai’s originated products Actemra®, Alecensa®, and Hemlibra®, the sales of in-licensed Roche products such as Tecentriq® and Perjeta® which gained additional indications, have steadily grown in recent years in Japan, and these drugs are now 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 dramatically due to the rapid growth of Chugai’s 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 is expected to increase due to royalty income and improvement in the cost to sales ratio driven by the steady growth in sales of Chugai originated products.