Sumitomo Dainippon Pharma Annual Report 2017
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¥17.6billion¥6.7billion340Net sales / Income of segment(Billions of yen)20151050Number of MRs (Fiscal 2016)(FY)Net salesYuan basisIncome of segment1.1billion RMB0.42billion RMB* MR: Medical Representatives(forecast)2014201520162017Key Measures• Maximize profit from existing products• Establish highly efficient business foundation17.118.418.317.66.28.06.76.7Chinese MarketSumitomo Dainippon Pharma sells four products in the Chinese market, which are MEROPEN® (brand name in China: MEPEM®), ALMARL®, a therapeutic agent for hypertension, angina pectoris and arrhythmia, SEDIEL®, a serotonin-agonist anti-anxiety drug, and GASMOTIN®, a gastroprokinetic. The 340 MRs (as of March 31, 2017) at our subsidiary Sumitomo Pharmaceuticals (Suzhou) Co., Ltd. cover 30 provinces and cities (major cities, provinces, and autonomous regions).In fiscal 2016, the environment continued to be extremely challenging, impacted by changes to the bidding system and by the Chinese government’s pharmaceutical distribution regulations (the “two invoices system”). However, as a result of strong performance particularly for MEROPEN®, sales on a yuan basis increased 11% over the previous fiscal year.Additionally, approval for LONASEN®, a therapeutic agent for schizophrenia, was received in February 2017. The product launch is scheduled for the beginning of 2018.Fiscal 2016 Main Initiatives and Business ResultsAlthough growth has lagged due to impacts of on-going factors including the bidding system, sales of our mainstay product MEROPEN® have been steady and we forecast net sales growth on a local currency basis.We will continue making efforts to increase business efficiency and maximize profit by placing staff and targeting customers using market data, while also thoroughly utilizing SFA and having our MRs provide detailed academic information.FY2017 Business Expansion and OutlookBrand NameTherapeutic IndicationFY2015FY2016Rate ofchange(%)FY2017forecastMEROPEN®(billion yen)Carbapenem antibiotic15.615.4(1.4)15.8MEROPEN®(billion RMB)Carbapenem antibiotic0.830.9515.50.96*1 RMB calculated at: 18.9 yen (scal 2015), 16.1 yen (scal 2016), 16.5 (scal 2017).Activities in MarketingActivities in MarketingBased on the RDPAC Code of Practice formulated by the RDPAC (China Association of Enterprises with Foreign Investment, R&D-based Pharmaceutical Association Committee) formed by foreign companies that have expanded into China, we have established a compliance framework, which we continue to strengthen as we develop our business.Compliance with RDPAC Code of PracticeCSRCSRSales of Major Products (Billions of yen)MarketingPharmaceutical Business39Sumitomo Dainippon Pharma Co., Ltd. Annual Report 2017

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