Original Global Development

From East to West: A global expansion that started in Asia

Today, the Otsuka Group operates in 28 countries and regions in Asia, Europe, North America and the rest of the world. Based on a global outlook, Otsuka is demonstrating the value of its unique approach while respecting the diversity of cultures in which it operates. We are determined to keep contributing to better health for people worldwide.

Otsuka made its first expansion outside of Japan by entering the Thai market in 1973. At that time, most Japanese pharmaceutical companies were focused on development in Western countries. However, Otsuka believed that as an Asian company it should focus first in the Asian region. So, Otsuka quickly started to expand in Asia. For example, Otsuka became the first Japanese pharmaceutical company to establish a joint venture in China — China Otsuka Pharmaceutical Co., Ltd. After that, we headed westward to Europe and the United States, offering highly original products in the areas of pharmaceuticals, medical devices, nutraceuticals and cosmedics. Today, Otsuka Pharmaceutical has 29 affiliated research institutes worldwide, along with 136 production sites. Researching and developing products that promote health, supplying local and neighboring markets, and implementing global sales efforts, Otsuka employees are taking on creative challenges wherever they work.

Asia, the Middle East and OceaniaOIAA: Otsuka’s focus in Asia and
the Middle East

The OIAA (Otsuka International Asia/Arab) Division was established in 2001 as the managing office for our business in Asia and the Middle East.

Expansion of Otsuka’s pharmaceutical business into Asia and the Middle East began in 1973, with the establishment of Thai Otsuka Pharmaceutical Co., Ltd. and its I.V. business. Then in 1974, P.T. Otsuka Indonesia and Taiwan Otsuka Pharmaceutical Co., Ltd. were established, followed by Arab Otsuka Pharmaceutical Co., S.A.E. (currently Egypt Otsuka Pharmaceutical Co., S.A.E.) in 1977.
In 1981, China’s Ministry of Health sought bids for the construction of a production base for quality I.V. solutions. As a result, Otsuka became the first Japanese pharmaceutical company to establish a joint venture in China — China Otsuka Pharmaceutical Co., Ltd. Today, Otsuka (China) Investment Co., Ltd., which oversees Otsuka’s pharmaceutical business in China, is making effective use of human resources and technologies, while making investments in various areas in order to maximize synergies among the group companies there.
After 1981, Otsuka expanded into other areas including South Korea, Hong Kong, the Philippines, and Vietnam. Currently, Korea OIAA, Co., Ltd., located in Seoul, is in charge of marketing and application development for Asia and the Middle East. It considers the healthcare systems across these regions, along with the business environments for products, and then establishes and promotes sales strategies specific to each market. Korea OIAA also works to increase the added value of Otsuka products. In 2014, Otsuka Australia Pharmaceutical Pty Ltd was established as Otsuka’s first pharmaceutical sales company covering the Oceania region.

POCARI SWEAT, one of Otsuka’s global nutraceutical products, was launched in Hong Kong and Taiwan in 1982. Since then, the sales area for this ion (electrolyte) supply beverage has expanded along with the establishment of production sites in China, South Korea, Taiwan, and Indonesia. By 2015, POCARI SWEAT is now available in 20 countries and regions worldwide.
Based on the Soylution concept, Otsuka’s global brand SOYJOY was launched in Japan, the US and China in fiscal 2006. Since then we have been offering new ways to enjoy the goodness of soy that match the preferences of different food cultures, including unique new flavors for the Chinese market. In March 2012, Otsuka launched its UL•OS brand of men’s skin care products in South Korea, marking the first expansion of the Cosmedics business outside Japan. We believe our unique style of growth will enable us to meet the needs of different cultures and customs.

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North and South AmericaFocus region for international expansion and
pharmaceutical clinical development

Otsuka’s pharmaceutical business in the US is managed by three companies: Otsuka America Pharmaceutical, Inc., Otsuka Pharmaceutical Development & Commercialization, Inc., and Otsuka Maryland Medicinal Laboratories, Inc. Respectively, they perform pharmaceutical sales, clinical development, and basic research. Established in 2007, Otsuka Pharmaceutical Development & Commercialization serves as a base for international expansion strategy and pharmaceutical clinical development worldwide. The company aims to provide patients with medicines that offer unprecedented new value. Otsuka Canada Pharmaceutical, Inc. was set up in 2010 to serve as a sales presence in that country.

In 2002, the antipsychotic drug, ABILIFY, was launched in the US. We are also actively working in the areas of oncology and cardiovascular disease through sales of Busulfex, a drug for the pre-conditioning of bone marrow transplantation, and Samsca, an oral vasopressin V2-receptor antagonist. In 2013, marketing began in the US for Abilify Maintena, a once-monthly extended-release injection of ABILIFY. In 2014, sales of the product also began in Canada and 18 European countries. After acquiring Astex Pharmaceuticals, Inc. of the US in 2013, Otsuka also acquired America’s Avanir Pharmaceuticals, Inc. of the US in 2015, which has the world’s first and only approved treatment for the neurologic disease pseudobulbar affect (PBA). Otsuka will continue to expand its business in the neurologic disease area where treatment satisfaction is insufficient.

In our U.S.-based nutraceutical business, Pharmavite, LLC, a leader in the supplement industry, manufactures and sells Nature Made supplements, which has been the number-one national brand sold in U.S. stores for eight consecutive years.* In 2014, the Otsuka added FoodState Inc., a pioneer of natural food-based supplements in the US, and the Otsuka is working on further business expansion. The global brand, SOYJOY, originated in Japan but is also sold in the US Original product flavors have been developed for this market, offering a new way to enjoy the goodness of soy as part of American food culture. In 2014, the health and functional food company Jasmine also joined the Otsuka Group as its first subsidiary in Brazil.

* Pharmavite calculation based in part on data reported by Nielsen through its Scantrack ® service for the Dietary Supplements category in dollar and unit sales, for the 52-week period ending 4/12/2014 in US Food Drug Mass channels; and for the 52-week period ending 1/3/2015 in US xAOC channels. c2015 The Nielsen Company.

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EuropeStrategic base for further international expansion

Establishing Otsuka Pharmaceutical Europe Ltd. in the UK in 1998 as a regional headquarters, we have been expanding our pharmaceutical business in Europe with operations in France, Germany, Italy, Scandinavia, Spain, and elsewhere. In 2013, Otsuka Europe Development and Commercialisation Ltd. was launched and tasked with ensuring the successful development and commercialization of our products in the region.

Interpharma Praha, a.s. in the Czech Republic is Otsuka’s first research, development, and manufacturing base of active pharmaceutical ingredients and nutritional products in Eastern Europe. In 2013, Otsuka also acquired Astex Pharmaceuticals, Inc. of the US. This company’s research center in Cambridge, UK, is conducting unique drug discovery research using fragment-based molecular design technology for drug discovery.

The major European nutritional food products company, Nutrition & Sante SAS (N&S), became a wholly owned subsidiary of Otsuka in 2009, and now serves as the production and sales base for our nutraceuticals in Europe. Otsuka Pharmaceutical sells the leading N&S brands, Gerblé and Gerlinéa, in Japan, and in 2011, N&S began to market SOYJOY in France, Belgium, Italy, and Spain. This marked the first introduction of one of our Japanese nutraceutical brands in this market, and represented a new step in our European expansion.