Shionogi & Co., Ltd.: SWOT Analysis & Company Profile by BusinessReview

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									Shionogi & Co., Ltd.


Shionogi & Co., Ltd.: SWOT Analysis &
Company Profile

Reference code: BRME022CP10-Q4

Published: Jun 2010

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Shionogi & Co., Ltd. - SWOT Profile                                                 Page 1
Shionogi & Co., Ltd.


Shionogi & Co., Ltd. - Company Overview

Shionogi & Co., Ltd. (Shionogi) is principally engaged in the manufacture of pharmaceutical products, diagnostics, and
other related products in the fields of circulation, metabolism, infection, immunity and cancer pain. Shionogi, along with 17
subsidiaries and four affiliates, is involved in the research, development, manufacturing, and marketing activities, with a
principal focus on prescription drugs, OTC drugs and diagnostics. The company focuses on three therapeutic areas
namely, metabolic syndrome, infectious diseases and pain. It sells vitamin compounds under POPON brand, cold
remedies under PYLON brand, and denture products under CORRECT brand. Shionogi operates in Japan, North America
and Europe. The company is headquartered in Osaka, Japan.

Financial Performance

The company reported revenues of (Yen) JPY 278,502 million during the fiscal year ended March 2010, an increase of
22.4% over 2009. The operating profit of the company was JPY 52,438 million during the fiscal year 2010, an increase of
63.8% from 2009. The net profit of the company was JPY 38,625 million during the fiscal year 2010, an increase of
146.6% from 2009.

Shionogi & Co., Ltd. - Key Facts

Shionogi & Co., Ltd., Key Facts

                                  1-8, Doshomachi 3-chome,
                                                                    Ticker Symbol, Stock       4507 (The Tokyo Stock
Corporate Address:                Osaka, , 541-0045, Japan                                     Exchange)

Telephone                         + 81 6 62022161                   No. of Employees           5,887

Fax                               + 81 6 62299596                   Financial Year End         March

URL                                     Revenue (in JPY Million)   278,502.00

                                  Medical Equipment ,
Industry                          Pharmaceuticals and Healthcare
                                                                 Revenue (in USD Million)      2,974.81

Locations                         Japan, Taiwan, United States

Source: Annual Report, Company Website, Primary and Secondary Research


Shionogi & Co., Ltd. - SWOT Profile                                                                                    Page 2
Shionogi & Co., Ltd.


Shionogi & Co., Ltd. - Business Description

Shionogi & Co., Ltd. (Shionogi) is a provider of pharmaceutical and other related health care products. The company sells
core domestic products such as Crestor and hypertension treatment products under Irbetan brand, topical preparation
product, Differin for acne vulgaris, and idiopathic pulmonary fibrosis treatment product under Pirespa brand. As of March
31, 2010, the company employed 5,887 people.

The company holds 17 subsidiaries which include Nichia Pharmaceutical Industries Ltd., Tokushima; Shionogi Analysis
Center Co., Ltd., Amagasaki; Saishin Igaku Co., Ltd., Osaka; Shionogi Engineering Service Co., Ltd., Hyogo; Shionogi
Buturyuu Service & Co., Ltd., Osaka; Shionogi General Service Co., Ltd., Osaka; Aburahi AgroResearch Co., Ltd., Shiga;
Taiwan Shionogi & Co., Ltd., Taipei; Shionogi USA, Inc., New Jersey; and SG Holding, Inc., New Castle.

Shionogi reports its business operations under one segment - Pharmaceuticals and related businesses. During the fiscal
year ended March 2010, the company reported more than 90% of its revenues from the Pharma business.

The company’s Pharmaceuticals product segment consists of three categories namely, Ethical Drugs, OTC Products and
Diagnostic Products. The core Ethical Drug business accounts for more than 90% of the company’s total net sales.
Shionogi is specialized in the areas of cardiovascular and metabolic diseases; infectious diseases and immunological
disorders; and cancer and related chronic pain. For cardiovascular and metabolic diseases, the company offers products
such as Landel‚ a calcium antagonist; Longes‚ an ACE inhibitor; and Crestor‚ a hyperchoresterolaemia treatment. Other
offerings include Flomox, an oral antibiotic; Flumarin, an injectable antibiotic; Vancomycin‚ an injectable antibiotic effective
in treating methicillin-resistant Staphylococcus aureus (MRSA); and Avelox, a quinolone antibiotic for infectious diseases
and immunological disorders. Shionogi also introduced Claritin and RediTabs. For cancer and related chronic pain, the
company offers OxyContin and MS Contin‚ Oxycodone. Its anticancer agents include Imunace‚ a recombinant interleukin-
2‚ and Aqupla‚ an anti-tumor drug.

The OTC products of the company includes two major products namely, Sedes‚ analgesic/antipyretics; and Popon‚
vitamin compounds. Each product has got variants namely, New Sedes‚ Sedes – Hi, Sedes Cure, and Sedes V which
contains vitamin B1 with antipyretic ingredients for headache‚ pain associated with stiffness and fever. Popon variants
include Popon – S‚ and Popon – C White which contains vitamin C with L–cysteine. The other products consists mainly of
Pylon brand‚ cold remedies; Belix A‚ vitamin B1 with E preparation; and Shionogi D Ointment for the treatment of eczema
and dermatitis.

The lead Diagnostic product of the company is a reagent used in the measurement of blood BNP which allows accurate
estimation of coronary functions. The company launched MI02 Shionogi BNP which measures blood BNP automatically
using special equipment. Shionospot BNP can measure BNP in whole blood samples using a Shionospot Reader. In the
area of allergy, the company offers HRT Shionogi reagent‚ which can detect isolation of histamine. Shionogi also
manufactures Precision Exceed and Precision Exceed Starter Box used for measurement of beta ketone by diabetic

Shionogi operates two distribution centers namely, Shionogi Distribution Center, Osaka; and Shionogi Tokyo Distribution
Center, Chiba. The company’s Kanegasaki plant is located at Iwate. It is solely established to meet the quality assurance
and quality control (QA/QC). It manufactures cancer pain drugs at a single location that helps it strengthen its
manufacturing control system and to reduce its distribution and management costs. Other manufacturing locations include
Settsu Plant located in Osaka and Nichia Pharmaceuticals Ltd. in Tokushima.

The company’s research and development program have concentrated its resources on the three targeted areas namely,
infectious diseases, pain and metabolic syndrome. Recently, the company received marketing and manufacturing
approval for Rapiacta, an anti-influenza drug and the antidepressant drug Cymbalta. It also has a number of
pharmaceuticals under developments, including a TPO mimetic for thrombocytopenia, an anti-HIV drug, and an anti-
obesity drug. The company also started the construction of Shionogi Pharmaceutical Research Center in Toyonaka City,
Osaka and has plans to complete it by April 2011. During the fiscal year ended March 2010, the company spent JPY
51,808 million towards its research and development activities.

Shionogi classifies its geographical operations into three regions namely Japan, North America, and Others. For the fiscal
year ended March 2010, Japan accounted for 85.53% of the company’s total revenues, followed by North America
(13.87%), and Others (0.6%).

Recently, the company announced its plans to incorporate Shionogi Techno Advance Research Co., Ltd in September
2010 to strengthen its research and support services for experimental research such as pharmacological and safety
evaluation. Further, the company, along with Eli Lilly Japan K.K. launched a serotonin noradrenalin reuptake inhibitor
capsule under Cymbalta brand. Shionogi also entered into a worldwide license agreement with QuatRx Pharmaceuticals
Company to develop and market a selective estrogen receptor modulator under Ospemifence brand.


Shionogi & Co., Ltd. - SWOT Profile                                                                                    Page 3
Shionogi & Co., Ltd.

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