Santen Announces FY2025-2029 Medium-Term Management Plan
May 21, 2025 - Osaka, Japan - Santen Pharmaceutical Co., Ltd. (hereinafter Santen) today announced its new Medium-Term Management Plan covering the five-year period from fiscal year 2025 through fiscal year 2029.
1. What Santen aspires To-be in 2035
Santen has steadily implemented structural reforms and other measures outlined in the medium-term management plan “MTP2025,” announced in fiscal year 2023, achieving the numerical targets for fiscal year 2025 ahead of schedule. Santen has now formulated a vision for what it aspires to be in 2035 and its medium-term management plan for the fiscal years up to 2029 (2025-2029), under which it will seek to achieve a new growth trajectory through the implementation of long-term strategies and by further strengthening its revenue base. As a global company specialized in eye health, the company pursues steady global growth through highly accurate product development and reliable revenue generation, conducting business activities with a keen focus on providing optimal ophthalmic care based on maximization of product value and innovation born from a deep understanding of both the field of ophthalmology and patient needs.
Santen’s Business Model
2. Growth Strategy
Over the next five years (fiscal years 2025-2029), Santen will leverage its accumulated strengths to further reinforce the Santen business model across all regions. The company will pursue six initiatives to build its reputation as a leader in the ophthalmology market and establish foundations for sustainable growth.
Establishing sustainable growth foundations: 6 initiatives
- Short- to Mid-Term Sales Growth
- Establish leadership positions in ex-Japan markets (EMEA, Asia and China): Santen will strengthen its presence through revenue growth that exceeds market growth rates in all regions, including Japan. While maintaining its leadership position in Japan, the company will seek to achieve a 58% overseas business sales ratio in fiscal 2029 through strong growth in markets outside of Japan.
- Create markets for myopia and ptosis and expand globally: Santen will seek to create Rx markets for the new areas of myopia and ptosis and develop environments in which doctors and medical institutions can proactively provide treatment aligned to local market needs. Myopia: by establishing a market for an eye drop treatment that curbs myopia progression, the company will seek to slow the progression of myopia in pediatric patients, reducing the burden on their daily lives while alleviating future eye-related concerns. Ptosis: the company will seek to enhance awareness of ptosis as a condition that is treatable with eye drops, promote the adoption of new treatment concepts, and establish a market for its non-invasive ptosis eye drop treatment.
- Mid- to Long-Term Sales Growth
- Strengthen Rx portfolios and pipelines: The company will accelerate approvals for the current pipeline and continue to promote life cycle management (LCM) that will contribute to sales during the medium-term management plan period. To expand Rx portfolios and pipelines for sustainable growth beyond fiscal year 2030, the company will strengthen business development target selection and capability enhancement while also taking on the challenge of developing new ophthalmic drug formulation technologies and modalities.
- Continuous strengthening of business foundation
- Strengthen stable supply & supply chain: In anticipation of increased demand for new products, the company will strengthen its stable and flexible product supply system by expanding in-house production capacity and reviewing its production network.
- Continuously optimize costs: The company will thoroughly promote multifaceted COGS-related initiatives and optimize SG&A through business process streamlining.
- Strengthen people/organization and Digital/IT: Santen’s most important asset is the talents who embody the company’s Core Principle and Vision and contribute to growth; as such, the company will promote the creation of a highly productive organization that improves and leverages their abilities. To achieve sustainable mid-to-long term growth, Santen will improve business productivity and stability by effectively leveraging digital technology and by strengthening company-wide IT and security infrastructure.
3. Targets for fiscal year 2029
| Revenue | 400 billion yen |
|---|---|
| Core operating profit | 80 billion yen (EBITDA：90 billion yen) 1 |
| ROE | Over 14% |
| EPS Growth rate | Double-digit growth2 (EPS: 160 yen or more) |
| Shareholder returns | • Minimum annual dividend of 38 yen with dividend hikes targeting 40% payout ratio • Opportunistic buybacks as a function of share price and surplus cash3 • Further ROE, EPS improvements |
- Reference range
- 2024 results - 2029 target CAGR
- Define necessary working capital as 45 billion yen and use retained surplus cash over a fixed period as the source for implementation
4. Capital Allocation including Shareholder Returns Policy
In addition to cash generated from operations, the company will maximize investment capacity by reducing working capital, utilizing surplus funds within the group, and raising funds in line with capital needs. As growth investments for the future, the company will prioritize investments in facility upgrades to expand production capacity and in research and development and business development to create innovation. Regarding shareholder returns, the company will continue to provide cash returns to shareholders through its progressive dividend system, maintaining the current minimum annual dividend of 38 yen and increasing dividends in line with profit growth. Santen will optimize its capital base through flexible share buybacks with the aim of improving ROE and EPS.
5. Sustainability
To contribute to society and achieve sustainable growth, Santen will vigorously promote the following 13 materialities (including four most important materialities). Specific initiatives and other details will be disclosed through Santen’s corporate website and other channels in the future.
Sustainable growth of society and business
- Generating products and services contribution to eye health *
- Ensuring product quality & stable supply *
- Penetration of products and market creation *
Strengthen business foundation
- Enhancing the value of working at Santen & strengthen people/organization *
- Business operations with high ethical standards
- Transparent disclosure of information
- Promoting Diversity, Equity & Inclusion (DE&I)
- Respect for human rights
- Sustainable procurement
- Ensuring Information security
- Promoting digital transformation
- Measures against climate change
- Environmental load reduction
- Four most important materialities
Collaterals and presentations
https://www.santen.com/en/ir/document/presentation
About Santen
As a specialized company dedicated to eye health, Santen aspires to contribute to the realization of “Happiness with Vision” by providing products and services to patients, consumers, and medical professionals around the world. Since its establishment, and guided by its CORE PRINCIPLE, “Tenki ni sanyo suru,” Santen has been committed to helping people maintain and improve their eye health for more than 130 years. Santen is engaged in the global research and development, manufacturing, and sales and marketing of pharmaceutical products in the field of eye care, supporting the eye health of approximately 50 million people in more than 60 countries and regions worldwide. Santen’s mission is to provide essential and significant value to patients and society in the prevention, diagnosis, and treatment of eye diseases through products and services created from its expertise in the ophthalmology field and from the patient's perspective. To create a future in which as many patients as possible can lead happy and fulfilling lives, Santen is committed to doing its utmost to realize a society in which people around the world can experience “Happiness with Vision.”
For more information, please visit Santen’s website https://www.santen.com/en.
Contact
Corporate Communications
Santen Pharmaceutical Co., Ltd.
E-mail: communication@santen.com
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