A Message from the President
President and CEO
Taking this opportunity to present an overview of Sumitomo Dainippon Pharma Group's business results for fiscal 2016 (April 1, 2016 through March 31, 2017) and initiatives scheduled for fiscal 2017 (April 1, 2017 through March 31, 2018), I want to express my sincere thanks for your generous support and understanding.
Net sales in Japan during fiscal 2016 showed a year-on-year decrease, due to the significant impact of the April 2016 NHI price revisions and a drop in sales of long-listed products; however, sales of strategic products expanded. Meanwhile, atypical antipsychotic LATUDA® continued to enjoy a substantial sales increase in North America. As a result, our consolidated net sales increased by 8.4 billion yen year-on-year to 411.6 billion yen.
In fiscal 2017, in Japan, we will focus on maintaining sales of existing products, such as TRERIEF®, LONASEN®, and Trulicity®, while concurrently seeking opportunities for in-licensing and alliances for new products. We will also work to improve business efficiency by enhancing productivity through work style reform and ongoing cost reductions. In North America, we aim to further boost sales of LATUDA®. We will also work to achieve early market penetration and sales expansion of the three approved therapeutic agents for patients with chronic obstructive pulmonary disease (COPD) that were in-licensed from Novartis in December 2016, and of glycopyrronium bromide for COPD treatment (product code: SUN-101), whose launch is scheduled for fiscal 2017. We will build an efficient sales organization to ensure strong growth for these new products over the medium term.
On the R&D front, we will place top priority on development of late-stage products in the Psychiatry & Neurology and Oncology areas. In fiscal 2017, we are planning to submit a new drug application of dasotraline for attention deficit hyperactivity disorder (U.S.), an additional indication for TRERIEF® in parkinsonism in dementia with Lewy bodies (Japan), and apomorphine hydrochloride hydrate for OFF episodes associated with Parkinson's disease (U.S.).
In fiscal 2016, we were able to achieve a record-high operating income of 50.0 billion yen, due primarily to expanded sales of LATUDA®, thereby meeting the fiscal 2017 target laid out in the 3rd Mid-term Business Plan one year ahead of schedule. In line with our basic policy on profit distribution to shareholders and our earnings results for fiscal 2016, we have decided to pay a year-end dividend of 11 yen per share, comprised of an ordinary dividend of 9 yen and a special dividend of 2 yen, thereby making the annual dividend 20 yen per share (consolidated dividend payout ratio of 27.4%).
We are committed to earning shareholders' trust in our business by steadily enhancing corporate value through ongoing growth of our business operations. I sincerely hope that all shareholders will continue to give us their support and patronage. Thank you.