Torii Pharmaceutical

Basic Information

Stock Code
4551
Industry
Pharmaceuticals
Category Detail
Biotechnology & Pharmaceuticals
Prefecture
Tokyo
Establishment Year
November 1921
Listing Year
June 1963
Official Website
https://www.torii.co.jp/
TSE Information
TSE Information
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Other Companies
JT, Kyowa Kirin, Takeda Pharmaceutical, Astellas Pharma, Shionogi, Chugai Pharmaceutical, Eisai, Ono Pharmaceutical, Santen Pharmaceutical, Daiichi Sankyo, Otsuka Holdings, NTT Data

Overview

Torii Pharmaceutical is a pharmaceutical manufacturing and sales company established in 1921 with its head office in Chuo-ku, Tokyo, and is one of Japan's major pharmaceutical companies with strengths in the cardiovascular field.

Current Situation

In the fiscal year ended December 2019, Torii Pharmaceutical recorded net sales of approximately 43 billion yen, operating income of approximately 1.4 billion yen, and net assets of approximately 113 billion yen. It stably manufactures and sells pharmaceuticals centered on its mainstay cardiovascular drugs and kidney/dialysis-related products. In 2020, it transferred its manufacturing facilities to Iwaki Pharmaceutical and completed outsourcing of manufacturing. Furthermore, through business restructuring, it has outsourced new drug development to Japan Tobacco (JT), establishing an efficient business system focused on manufacturing and sales. Although it has recently faced administrative monetary penalty orders for issues such as price cartels, it maintains competitiveness in the prescription pharmaceutical field and is strengthening its sales channels utilizing its domestic distribution network. On the sustainability front, it focuses on efficiency through manufacturing outsourcing and laboratory closures while maintaining sustainability. In the future, it aims to expand its business domestically and internationally through partnerships and M&A with competitors, as well as the utilization of digital technologies. Since 2023, it has also been considering a shift to antibody drugs and immunotherapy fields, positioning them as part of its mid- to long-term growth strategy.

Trivia

Interesting Facts

  • Historic company developed from Ueno-ya Western Medicine Import Firm founded in 1872.
  • Long-term product focus specialized in cardiovascular pharmaceuticals.
  • Main shareholder is Japan Tobacco (JT), operating as a subsidiary.
  • Closed research institute in 2019 to improve management efficiency.
  • High market share in domestic hyperphosphatemia treatment drug Riona Tablet.
  • Transferred manufacturing and marketing approvals for anti-HIV drugs to Gilead Sciences.
  • Pioneering company in fully outsourcing pharmaceutical manufacturing.
  • Experience paying administrative fines for antitrust price cartel violation.
  • Launched immunotherapy drug Cedartolen for hay fever in 2014.
  • Engages in video culture activities collaborating pharmaceuticals and video production.

Hidden Connections

  • Deep collaboration with Japan Tobacco's pharmaceutical strategy as a JT subsidiary.
  • Transfer of manufacturing site to Iwaki Pharmaceutical impacted industry logistics and production systems.
  • Strengthened relationship with Gilead Sciences through transfer of anti-HIV drug business.
  • Price cartel issue became one trigger for strengthened regulations in the pharmaceutical industry.
  • Implements medical awareness and corporate branding through pharmaceutical video production.
  • Head office building in Nihonbashi Honcho, Chuo-ku, is one historic symbol of the pharmaceutical industry.
  • Cedartolen cedar pollen desensitization therapy drug impacts hay fever treatment market.
  • Evaluated as a company with strong administrative responsiveness in Japan's pharmaceutical industry.

Future Outlook

Growth Drivers

  • Expansion of aging-related demand in cardiovascular pharmaceutical market
  • Strengthening product competitiveness through indication expansion drug development
  • Cost efficiency through outsourced pharmaceutical manufacturing
  • Technological innovation through strengthened JT Group collaboration
  • Stable supply through deep relationships with domestic medical sites
  • Growth in allergy treatment drug market
  • Promotion of digital medical technology adoption
  • Improved trust through advanced safety and quality management
  • Flexible systems adapting to regulatory changes in pharmaceutical market
  • Advancement of mid- to long-term globalization strategies
  • New product creation through efficient R&D system

Strategic Goals

  • Continuation and optimization of fully outsourced manufacturing system
  • Market share expansion in cardiovascular field
  • Expansion and sales strengthening of indication expansion pharmaceuticals
  • Strengthened R&D through collaboration with JT Group
  • Sustainability promotion including reduced environmental impact
  • Fulfillment of social responsibility through strengthened regional medical collaboration
  • Compliance of pharmaceutical quality management with international standards
  • Business efficiency improvement through digitalization promotion
  • Gradual entry into new therapeutic fields
  • Building medical support system for aging society

Business Segments

Pharmaceutical Manufacturing Outsourcing

Overview
Provides consignment manufacturing services for pharmaceutical formulations utilizing manufacturing facilities.
Competitiveness
High-quality GMP-compliant production lines and extensive manufacturing track record
Customers
  • Major pharmaceutical companies
  • Generic drug manufacturers
  • Biotech ventures
  • Research institutions
  • University medical institutions
Products
  • Pharmaceutical formulation outsourcing
  • API manufacturing outsourcing
  • Quality control services
  • Stability testing
  • Packaging and logistics services

Pharmaceutical Sales

Overview
Engages in specialized pharmaceutical sales and promotional support to medical institutions.
Competitiveness
Regionally dense sales network and deep insights into medical sites
Customers
  • Hospitals
  • Clinics
  • Pharmacies
  • Pharmaceutical wholesalers
  • Pharmaceutical trading companies
Products
  • Cardiovascular pharmaceuticals
  • Kidney and dialysis-related pharmaceuticals
  • Dermatology pharmaceuticals
  • Neuromuscular disease treatments
  • Anti-allergy drugs

Pharmaceutical R&D Collaboration

Overview
Promotes collaborative R&D for new pharmaceuticals and indication expansions.
Competitiveness
Focused R&D system based on collaboration with JT
Customers
  • Japan Tobacco (JT)
  • Domestic and international pharmaceutical companies
  • Biotechnology companies
  • Academic researchers
Products
  • Joint research on new drug candidate compounds
  • Indication expansion R&D
  • Clinical development support
  • Patent and IP management

Logistics and Distribution Management Services

Overview
Provides safe and efficient pharmaceutical logistics and distribution management services.
Competitiveness
Logistics centers across eastern and western Japan and IT management systems
Customers
  • Pharmaceutical companies
  • Medical institutions
  • Pharmaceutical wholesalers
  • Drugstore chains
Products
  • Pharmaceutical logistics center operations
  • Temperature-controlled delivery
  • Traceability systems
  • Inventory management systems

Education and Awareness Services

Overview
Provides product knowledge and latest information to healthcare professionals.
Competitiveness
High-specialty educational content and lecturer team
Customers
  • Healthcare professionals
  • Pharmacists
  • Medical institution staff
Products
  • Product information sessions
  • Training programs
  • Pharmaceutical information provision

Competitive Advantage

Strengths

  • Strong financial base as a JT subsidiary
  • Pharmaceutical development capabilities specialized in cardiovascular
  • Extensive domestic distribution network
  • Efficient production system through outsourced manufacturing
  • Indication expansion technology in R&D
  • Regionally focused sales capabilities
  • High-quality pharmaceutical expertise
  • Solid financial management
  • Rich product lineup
  • High recognition among domestic medical institutions
  • Strengths in drug approvals
  • Strengthened patent and IP strategy
  • High customer responsiveness
  • Stable market position
  • Rapid market response capabilities

Competitive Advantages

  • Stable funding supply from JT Group
  • Efficient business operations specialized in specific areas
  • Better product mix balance compared to competitors
  • Achieved cost reduction and resource focus through outsourced manufacturing
  • Specialized R&D in indication expansions to pursue results while controlling risks
  • Strong regional sales network and deep relationships with medical institutions
  • Agile responsiveness to customer needs
  • Abundant experience in drug applications and approvals for easier permissions
  • Brand power and credibility highly evaluated in the industry
  • Close collaboration with pharmaceutical wholesalers for stable supply chains
  • Focuses on product quality control as a differentiating factor from competitors
  • Competitive defense through IP portfolio
  • Able to leverage technology sharing and synergies within the group
  • Stable cash flow provides room for business investments
  • Product deployment across diverse therapeutic areas

Threats

  • Increasing competitive pressure from rising new drug development costs
  • Profit squeeze from drug price revisions
  • Market share reduction due to major new drug launches by competitors
  • Impacts from healthcare system reforms and stricter regulations
  • Rise of generics and price competition
  • Delays in overseas business expansion
  • Risk of failing to keep up with technological innovations
  • Cost increases from exchange rate fluctuations
  • Uncertainty in R&D outcomes
  • Drug harm lawsuits or compliance issues
  • Impacts from social changes such as COVID-19
  • Quality risks from manufacturing contractors

Innovations

2020: Outsourcing of Pharmaceutical Manufacturing Operations

Overview
Transferred Sakura Plant to Iwaki Pharmaceutical and completed manufacturing outsourcing.
Impact
Achieved manufacturing cost reductions and business efficiency.

2020: Restructuring of R&D System through Pharmaceutical Research Lab Closure

Overview
Closed the research institute in Sakura City, Chiba Prefecture, and reorganized research functions.
Impact
Concentrated R&D expenses and implemented efficient resource allocation.

2021: Transfer of Manufacturing and Marketing Approval Rights for Anti-HIV Drugs

Overview
Transferred approvals for 6 products to Gilead Sciences.
Impact
Shrunk responsible fields to focus on manufacturing and sales.

2022: Expansion of Allergy Treatments through Cedartolen Launch

Overview
Newly launched desensitization therapy drug for cedar pollinosis and expanded market.
Impact
Successfully created new sales in the allergy field.

2023: Strengthening Indication Expansion Research through Collaboration with JT

Overview
Collaborating with JT to focus on indication expansion research for cardiovascular drugs.
Impact
Maintains competitiveness of existing products and promotes new product development.

Sustainability

  • Reduced environmental impact and optimized resources through outsourced manufacturing
  • Efficient resource utilization through focused R&D
  • Energy-saving initiatives through rationalization of domestic manufacturing sites
  • Ethical pharmaceutical development and safety assurance
  • Social contributions through strengthened collaboration with medical sites
  • Building sustainable supply chains