Eisai

Basic Information

Stock Code
4523
Industry
Pharmaceuticals
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Tokyo
Establishment Year
December 1941
Listing Year
September 1961
Official Website
https://www.eisai.co.jp/
TSE Information
TSE Information
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Other Companies
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Overview

Eisai is a major Japanese pharmaceutical company headquartered in Tokyo, founded in 1941. It boasts a high sales ratio from its in-house developed products such as Alzheimer's disease treatments and strengths in international expansion including the United States.

Current Situation

Eisai recorded consolidated sales of approximately 695.6 billion yen and net profit of approximately 121.7 billion yen in the fiscal year ended March 2020, ranking 5th in scale among domestic pharmaceutical companies. Its flagship products 'Aricept' and 'Pariet' account for about 60% of sales, with in-house developed products comprising about 90% of sales, demonstrating strong competitiveness. It is aggressively expanding overseas, with more than half of total sales coming from overseas revenue. In the US, it handles everything from drug discovery to sales in-house or through subsidiaries, and has production bases in the UK and India. In recent years, it has recovered performance through the launch of new products such as the anticancer drug 'Lenvima' and the antiepileptic drug 'Fycompa'. Under its medium-term plan 'E-way2025', it aims for sales of 800 billion yen by 2025. While continuing investments in sustainability and R&D, it is focusing on new drug development for Alzheimer's disease, with expectations for expansion in sales of FDA-approved drugs. Management is family-owned but has strengthened governance by including many outside experts on the board.

Trivia

Interesting Facts

  • Maintains family management while adopting numerous outside directors to strengthen governance.
  • One of the pioneering leader companies in Alzheimer's treatment drug development.
  • One of the few Japanese companies capable of handling drug discovery to sales entirely in-house in the US.
  • Introduced special bonus system in pharmaceuticals to boost researcher motivation.
  • Corporate slogan 'Human Health Care' derives from Nightingale's handwritten signature.
  • Changed name from Japan Eisei Co., Ltd. to Eisai in 1955.
  • Significant revenue from partnerships on anticancer 'Lenvima' and immune checkpoint inhibitors.
  • Major domestic subsidiary EA Pharma is a joint venture with Ajinomoto Pharmaceuticals.
  • Founder Toyoji Naito from former Tokyo Tanabe Pharmaceuticals, founded in 1936.
  • Flagship products often feature 7-letter names with rhyme.
  • Alzheimer's treatment Aducanumab has US FDA approval.
  • First pharmaceutical company to include corporate philosophy in articles of incorporation.
  • OTC brand 'Chocola BB' launched in 1952.
  • In-house museum 'Naito Memorial Drug Museum' opened in 1971.
  • Planned full consolidation and merger of Kan Research Institute in April 2023.

Hidden Connections

  • Partnership with US Biogen on Alzheimer's new drug development is a renowned success case in the industry.
  • Naito family involved across generations in management; unique structure where outside directors oversee despite being family-owned.
  • Major subsidiary EA Pharma is a joint venture with Ajinomoto Pharmaceuticals, with strong collaborative ties.
  • Founder from Tokyo Tanabe Pharmaceuticals; networks with key figures in Japanese pharma still utilized today.
  • Pharma industry's new drug development special bonus system contributed to success of Aricept and Pariet.
  • Actively expanding not only in prescription drugs but also in quasi-drugs and health foods markets.
  • Original Japan Eisei Co., Ltd. from which the name derives is a separate entity from the existing company of the same name.
  • 'Human Health Care' logo uses 'hhc' letters derived from Nightingale's handwritten signature.

Future Outlook

Growth Drivers

  • Market expansion of new Alzheimer's treatments
  • Increase in dementia patients due to global aging population
  • Market penetration through global sales and production systems
  • Innovation in oncology fields like immunotherapy
  • R&D efficiency improvement via digital technologies
  • Rising pharmaceutical demand in emerging markets
  • Success in new drug development to offset patent expirations
  • Focus on patient-centered medical solutions
  • Strengthening of sustainable pharmaceutical supply systems
  • Synergy creation with partner companies

Strategic Goals

  • Leap to global leader in Alzheimer's disease treatments
  • Achieve 1 trillion yen sales and over 60% overseas ratio
  • Significant reduction in environmental impact based on sustainability goals
  • Improve new drug development success rate with next-gen discovery technologies
  • Strengthen talent strategy through diversity and inclusion
  • Full-scale rollout of digital healthcare business
  • Build advanced quality and safety management system
  • Enhance policy response and relationship building in key markets
  • Expansion of global social contribution activities
  • Diversification of business portfolio and development of new fields

Business Segments

Pharmaceutical Supply to Medical Institutions

Overview
Conducts research, development, and stable supply of specialized pharmaceuticals to medical institutions.
Competitiveness
Global R&D structure and in-house sales network
Customers
  • Hospitals
  • Clinics
  • Medical Offices
  • Medical Institutions in General
Products
  • Aricept
  • Lenvima
  • Fycompa
  • Halaven
  • Dayvigo

R&D Services

Overview
Provides research support and services for creating next-generation pharmaceuticals.
Competitiveness
Advanced biotech and data analysis capabilities
Customers
  • Academic Institutions
  • Biotech Companies
  • Pharmaceutical Companies
Products
  • New Drug Candidate Compounds
  • Drug Discovery Research Support Services
  • Clinical Trial Support

Contract Pharmaceutical Manufacturing

Overview
Provides high-quality pharmaceutical manufacturing and quality control services.
Competitiveness
Integrated production system across multiple regional bases
Customers
  • Domestic & International Pharmaceutical Companies
  • Pharmaceutical Development Companies
Products
  • GMP-Compliant Pharmaceutical Manufacturing
  • Contract Analysis
  • Formulation Development

OTC Drug Wholesale & Sales

Overview
Engages in wholesale and sales support for OTC drugs to general consumers.
Competitiveness
Extensive brand power and sales channel network
Customers
  • Drugstores
  • Retail Stores
  • Mail-Order Businesses
Products
  • Chocola BB Series
  • Travelmin
  • Zarne Cream

Research Equipment Sales

Overview
Sales and maintenance of equipment and devices supporting R&D.
Competitiveness
Technical support system with extensive expertise
Customers
  • University Labs
  • Pharmaceutical Research Facilities
  • Biotech Companies
Products
  • Lab Equipment
  • Pharmaceutical Machinery
  • Analytical Instruments

Functional Foods Business

Overview
Business division promoting development and distribution of functional foods.
Competitiveness
High-function products based on pharmaceutical development experience
Customers
  • Health Food Wholesalers
  • Convenience Stores
  • Supermarkets
  • EC Operators
Products
  • Beauty Chocola Collagen Drink
  • Chocola BB Drink
  • Uvela Series

Global Marketing

Overview
Handles product expansion and brand strategy in overseas markets.
Competitiveness
Experience in multi-country operations
Customers
  • Overseas Subsidiaries
  • Local Sales Companies
  • Partner Companies
Products
  • Eisai Products in General
  • Licensed Products

Logistics Services

Overview
Provides pharmaceutical-specific delivery management and logistics services.
Competitiveness
Network spanning domestic and international
Customers
  • Pharmaceutical Sales Companies
  • Medical Institutions
  • Retail Businesses
Products
  • Pharmaceutical Transportation
  • Cold Chain Management
  • Warehouse Storage

Manufacturing Equipment Support

Overview
Responsible for equipment maintenance and technical support for pharmaceutical factories.
Competitiveness
Specialized support based on pharmaceutical industry knowledge
Customers
  • Subsidiaries
  • Related Companies
  • Pharmaceutical Production
Products
  • Production Equipment Maintenance
  • Technical Support Services

Prescription Pharmaceutical Support

Overview
Implements product information and educational activities for healthcare professionals.
Competitiveness
High-quality information provision by specialized staff
Customers
  • Physicians
  • Pharmaceutical Wholesalers
  • Hospital Administrators
Products
  • Sales Support Tools
  • Product Education Programs

R&D Investment Management

Overview
Fulfills research management functions for new drug development.
Competitiveness
Efficient management system based on extensive experience
Customers
  • R&D Departments
  • Corporate Management
Products
  • Research Project Management
  • Budget Management

OEM Manufacturing

Overview
Provides manufacturing and packaging for other companies' brands.
Competitiveness
High-quality, high-efficiency production system
Customers
  • Domestic & International Pharmaceutical Manufacturers
  • Venture Companies
Products
  • Pharmaceutical Manufacturing Contract
  • Packaging & Logistics

Competitive Advantage

Strengths

  • Strong R&D capabilities and unique new drug development
  • High overseas sales ratio and international expansion
  • Brand power and market penetration of flagship products
  • Vertical integration from in-house production to sales
  • Stable management base from family-owned operations
  • Rich patent portfolio
  • High-quality data from clinical trials
  • Diverse formulation technologies and product lineup
  • Sales organization responsive to customer needs
  • Proactive response to sustainability
  • Established wide sales channels
  • High trust in the pharmaceutical industry
  • Product deployment across broad medical fields
  • Technology enhancement through strategic partnerships
  • High level of quality control system

Competitive Advantages

  • Pioneering position in Alzheimer's-related new drugs
  • Self-contained business model in overseas operations
  • Differentiation with over 90% in-house developed products
  • Creation capability for replacements to patent-expired products
  • Ownership of global R&D bases including the US
  • Product portfolio across diverse pharmaceutical areas
  • Maintenance of special incentive system for R&D employees
  • Partnerships with major companies like Biogen
  • Long-term investment capacity from strong financial health
  • Optimization of efficiency through integrated manufacturing, sales, and logistics
  • Risk diversification through diversified sales channels domestically and internationally
  • Consistency and speed in management from family-owned structure
  • Broad responsiveness to customer needs of various scales
  • Product reliability based on rich clinical data
  • Utilization of global market intelligence

Threats

  • Risk of revenue decline from new drug patent expirations
  • Intensifying competition and price pressure in dementia drug market
  • High R&D costs and investment recovery risks
  • Regulatory tightening and approval delays in overseas markets
  • Global economic uncertainty and currency fluctuations
  • IP infringement risks in emerging markets
  • Expansion of generic drugs and biosimilars
  • Fluctuations from disruptors in medical technology innovation
  • Changes in market entry barriers from regulatory changes
  • Potential strengthening of price regulations in pharmaceutical industry
  • Supply risks from supply chain disruptions
  • Public health uncertainties such as novel infectious diseases

Innovations

2023: Launch of FDA-approved Alzheimer's dementia treatment 'Lecanemab'

Overview
Obtained US FDA approval and began sales of innovative treatment expected to suppress progression.
Impact
Promotes acquisition of new revenue sources and market share expansion

2022: 'Dayvigo (lemborexant)' launched in Japan

Overview
Market introduction of new sleep disorder treatment as orexin receptor antagonist.
Impact
Improves competitive edge in sleep aid market

2021: US FDA approval obtained for co-developed 'Aducanumab'

Overview
Partnered with Biogen for world's first approval of Alzheimer's progression-suppressing drug.
Impact
Establishes position as leading company in Alzheimer's treatment

2024: Partial transfer of dementia API production to US

Overview
Promotes supply chain efficiency through production base optimization.
Impact
Cost reduction and strengthened supply system

2023: R&D enhancement through EWAY2025 medium-term plan

Overview
Deploys investment strategy to accelerate innovative drug development and overseas revenue.
Impact
Aims to create future growth engines

2020: Launch of 'Dayvigo' in Japan

Overview
Began product rollout aiming to create new sleep aid category.
Impact
Provides new options for sleep disorder treatment

2021: Acceleration of international expansion for cancer drug 'Lenvima'

Overview
Strengthened sales networks in US, Europe, and China.
Impact
Contributes to significant increase in oncology sales

2023: Global expansion of prescription antiepileptic 'Fycompa'

Overview
Achieved product awareness improvement through new market entry and partnership strengthening.
Impact
Sales expansion and market share improvement

2022: Optimization of logistics system and IT implementation

Overview
Promotes efficiency through strengthened supply chain management.
Impact
Succeeded in cost reduction and delivery time shortening

2024: Advanced drug discovery research using AI technology

Overview
Achieved improved speed in new drug candidate exploration using AI.
Impact
Shortening of R&D period and improved success rate

Sustainability

  • Promotion of CO2 emission reductions to lower environmental impact
  • Emphasis on fair labor practices and diversity promotion
  • Support activities to improve sustainable access to pharmaceuticals
  • Thorough strengthening of product safety and quality control
  • Contributions to local communities and educational support programs
  • Ensuring ethical procurement in supply chain
  • Promotion of environmental safety assessments for products
  • Enhancement of employee health and welfare support
  • Expansion of renewable energy adoption
  • Maintenance of transparent corporate governance
  • Waste reduction and recycling promotion activities
  • Commitment to Sustainable Development Goals (SDGs)