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Our Challenges

Established Taiyo Pharma Co., Ltd.
as a subsidiary of the medical and pharmaceutical business.

Taiyo Pharma Feature

Taiyo Pharma Co., Ltd. (hereafter, Taiyo Pharma) was established on August 2, 2017 as the wholly owned medical and pharmaceutical business subsidiary of Taiyo Holdings Co., Ltd. (hereafter, Taiyo Holdings). Our founding vision is to increase the Taiyo Group’s social contribution level and deliver pharmaceutical drugs to markets around the world. Since our founding, we have worked to solidify our corporate structure based on our primary mission of applying diverse technology towards providing patients with a stable supply of socially critical pharmaceutical drugs that have a long and established history of use. As a result of these efforts, in November 2017 we reached a consensus on agreements to transfers rights of long-listed products with Chugai Pharmaceutical Co., Ltd. and F. Hoffmann-La Roche Ltd. for 13 long-listed products. In line with taking over sales of these drugs, we are entering the phase of full-scale engagement in the pharmaceutical drugs industry. During this phase, we will establish a structure for the manufacturing and distribution of pharmaceutical drugs. Moving forward, as a business involved in the manufacture and sale of pharmaceutical drugs, we will strive to ensure comprehensive reliability in our business activities, protect the brand value of inherited products, and continue providing products and information to patients and medical professionals. To make this into the first step towards evolving into a comprehensive chemical company, the long-term vision for Taiyo Holdings, we will establish a firm foundation in the pharmaceutical drugs industry and grow into a business that transcends industry and international borders.

Strategy
Specialize on Pharmaceutical Development and Sales of Long-listed Products

One of our core growth strategies will be the additional inheritance of long-listed products. At present, we have taken over 13 long-listed products from Chugai Pharmaceutical Co., Ltd and Hoffmann-La Roche Ltd. We will increase our portfolio of inherited products to respond to broad-based needs as a pharmaceutical company and increase sales. In addition to existing products, we will prioritize investments in plant acquisition and construction as we aim to increase our portfolio of products manufactured in-house. Simultaneously to manufacturing and sales, we also will work to improve revenues for long-listed products in order to improve profitability. To improve our pharmaceutical technology, we also will focus on establishing an R&D facility. To concentrate management resources on these core areas, for the time being we will refrain from engaging in drug creation and instead specialize on pharmaceutical developing and manufacturing long-listed products.

Global Expansion

As soon as we establish our structure for manufacturing and sales in Japan, we will begin working on our global structure. We will apply the Taiyo Group’s knowledge and experience in global operations towards engaging in overseas markets. As a stepping stone, we are already conducting research towards engaging in East Asia, where the Taiyo Group has a strong business network. We will evaluate all available methods to engage in global markets, including market engagement via M&A activities. Specific plans will be drafted based on the results of careful market analysis. After establishing our position as a pharmaceutical company on global markets, we want to apply our cumulative knowhow and experience towards expanding into medical industries beyond pharmaceutical drugs such as medical technology and therapeutic medicine.

Lastly, we will partner with Group companies in other domains to establish ourselves firm contributor to the Taiyo Group vision of becoming a comprehensive chemical company.

Executive Roundtable Discussion
Struggle to Conform to The Unique Framework of The Pharmaceutical Industry

Sato:: The launching point for Taiyo Pharma was some three years ago, when as part of our evaluation of how Taiyo Holdings could expand its business into other markets, we decided to engage in the medical and pharmaceutical business. The reason for choosing the medical and pharmaceutical business was because of the high affinity with current operations. We felt that delivering high-quality Japanese pharmaceutical drugs to markets around the world was in light with our existing Group mission of delivering high-quality products as a chemical manufacturer. Also helpful was the fact that chemicals and pharmaceutical drugs are closely related business domains.

Arima:: For certain there is a strong correlation with our existing materials and components for electronic devices business, which has focused primarily on solder resist (SR) products. At the same time, numerous aspects of these operations differ. The industry has numerous unique laws and regulations. Currently, we are in the process of information gathering in order to ensure compliance with these laws. In addition to regulatory compliance, another barrier to market engagement was securing product to sell. Thanks to a series of fortunate developments, we were able to reach agreements to inherit long-listed products, which enabled us to establish the company as we exist today.

Kawasaki:: Another major barrier was gaining our license for manufacturing and distribution. In particular, law requires the establishment of three officers, a manufacturing and sales officer, a quality assurance officer, and a safety management officer, and each officer must hold stipulated qualifications and experience. I was designated to serve as the manufacturing and sales officer. The other two positions were filled by persons with the required knowledge and experience. With the help of internal and external partners, we were able to pass inspections by supervisory authorities and set sail as a pharmaceutical company.

Yamamoto:: As expected, one of the issues we faced engaging in the industry was a lack of knowledge and experience in the pharmaceutical drugs industry. Needless to say, both technical knowledge and an understanding of industry rules are vital to conducting transactions. On the subject of the regulations Mr. Arima spoke about, not only are there numerous laws requiring compliance but also the industry has established numerous voluntary regulations. We will work tirelessly to ensure our understanding and compliance those rules and regulations.

Executive Roundtable Discussion Struggle to Conform to The Unique Framework of The Pharmaceutical Industry

Establishing Drug Development and Aiming for Global Expansion

Sato:: Having acquired a portfolio of long-listed products, I believe we have overcome all barriers to entry. As an ongoing strategy, we will first focus on the rapid establishment of a factory and research facilities. We will evaluate both new plant construction and the acquisition of existing facilities. In either case, our highest priority will be to establish the plant as a base for in-house manufacturing in the future. At our R&D facilities, we will focus on the pharmaceutical development with the long-term goal of linking these efforts to drug creation.

Yamamoto:: At the center of pharmaceutical company is drug development. We will begin by establishing drug development as a core of our operations. The Taiyo Group is a manufacturing company. We have plenty of room to apply the knowledge and experience we have accumulated over the years. However, as that alone is not enough, we must understand and respond to the unique and strict standards applied to pharmaceutical drugs. We also will need to incorporate those standards into all aspects of our factories. We will respect the heritage of the Taiyo Group as we increase our knowledge of the industry. We will combine this heritage and with new knowledge to establish Taiyo Pharma as a company for drug development.

Arima:: One thing I want to point out as a core theme is our commitment to global expansion. Fulfilling the Taiyo Holdings mission of delivering high-quality products to markets around the world was the driving force behind our engagement in the pharmaceutical drugs industry. This is another reasons why we will aim to quickly provide pharmaceutical drugs to overseas markets. The biggest obstacle to overseas market engagement is human resource recruitment, education, and retention. We should be able to apply the Taiyo Group’s experience in global expansion towards these efforts. This knowledge and experience can be a factor that distinguishes us from our competitors. In this sense as well, we want to accelerate our efforts related to engagement in overseas markets.

Sato:: We are viewing the East Asian region as the first target area for overseas engagement. The idea is to begin in areas where we can most take advantage of the network the Taiyo Group has established through its core business operations. We already have a survey team on site where they are conducting research from a variety of perspectives. We will apply detailed research results towards establishing a direction for the company. At present, we are evenly considering all possibilities, including market engagement through capital investment.

Establishing Drug Development and Aiming for Global Expansion

Contributing to An

Yamamoto:: In order for the contracting Japanese pharmaceutical drugs market to overcome current conditions, the market is in need of new ideas not grounded in outdated industry customs. As a participant from a different industry, we have the ability to present original ideas. We will aim to be a company that pioneers a new path for the pharmaceutical drugs industry.

Arima:: We want to remain a company that is kind to patients. This passion is expressed in our slogan of being a company that is serious about the pharmaceuticals people need. Pharmaceutical drugs on the market today are all effective products. We want to continue delivering current pharmaceuticals in the format that patients require. Our goal is to pursue what we believe to be kindness to patients.

Kawasaki:: I want us to be a company that contributes to medicine in ways beyond pharmaceuticals. For example, I hope we can engage in markets such as medical technology and therapeutic medicine. Through our continued growth as a pharmaceutical company, I want to engage in various activities without becoming fixated on frameworks or fixed concepts.

Sato:: I want to contribute to creating an enjoyable society. Some countries have regions that are unable to receive needed drugs. That is why I want to engage in overseas markets. Not all problems can be resolved with pharmaceuticals so I also hope to engage in medical care. Everything will lead to the realization of a more enjoyable society. In the future, regardless of the domains in which we engage, I want to protect this vision.

Eiji Sato

Chairman of the Board and Representative Director

Auditor of Taiwan Taiyo Ink in 2001. Assumed role of director at Taiyo Holdings in 2008. Became executive officer and Group CFO in 2009. President and CEO since 2011. Assumed current role as Chairman of the Board and Representative Director of Taiyo Pharma in 2017.

Masao Arima

Representative Director and COO

General Manager of Sales Division at Taiyo Ink Mfg. in 2014. After serving as General Manager of the R&D Dvision at Taiyo Holdings in 2015, assumed role of New Business Development Department Manager before becoming President and COO of Taiyo Pharma in 2017.

Soichiro Kawasaki

Director

Joined Taiyo Holdings in 2016. Assumed role of director at Taiyo Pharma in 2017, also serves as Reliability Assurance Department Manager.

Osami Yamamoto

Director

Joined Taiyo Holdings in 2016. Assumed role of director at Taiyo Pharma in 2017, also serves as Quality Assurance Department Manager.

Last update date February, 2019

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Established Taiyo Pharma Co., Ltd.as a subsidiary of the medical and pharmaceutical business.