Identifying Our Materiality
At Eisai, in order to clearly identify priority issues to be addressed to maximize corporate value over the medium to long term through the realization of our corporate concept, we are identifying materiality to effectively realize social good in accordance with our Articles of Incorporation, amended in June of 2022.
The horizontal axis for materiality is “Eisai’s Intrinsic Corporate Value (social impact + financial value)”, as we understand the importance of creating social impact and creating financial value by working toward the effective realization of social good.
The vertical axis is “Stakeholders’ Interests”. Based on the concept that it is efficient to focus on long-term investors, who are the beneficiaries of residual income, in order to sustainably maximize corporate value in a way that satisfies all stakeholders*1, we have adopted a method of identifying and prioritizing the interests of long-term investors. At the same time, for this materiality, we have set the vertical axis so that it can be correctly understood that it is intended to create long-term benefits not only for long-term investors, but also for a wide range of stakeholders.
In accordance with the above two axes, we have identified 15 material topics. Among them, we have identified five topics of great interest to our stakeholders, especially long-term investors, that have a positive social impact and correlation with PBR, which we believe will enhance our intrinsic corporate value through our accelerated efforts, and we have established long-term objectives, KPIs, and risks for fiscal 2030. The new materialities and long-term goals, KPIs, and risks were set after deliberation and approval by the Executive Board (as of fiscal 2023*2) and with confirmation by the Board of Directors. Every year, we conduct reviews on the progress of these activities and aim to ensure their promotion through the PDCA cycle.
Furthermore, every year we conduct an analysis of our material topics in light of the business environment and social issues. We review progress in our efforts in accordance with our action plans, and revise our material topics and KPIs as needed.
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*2 Changed name to Growth & Operating Committee (GOC)
Process of Identifying New Material Topics to Effectively Realize Social Good
*3 Sustainability disclosure standards provided by the Value Reporting Foundation that identify material topics by industry
*4 Indicators that concretely visualize the abstract concept of sustainability by the NPO Global Reporting Initiative, whose mission is to set international standards for sustainability
*5 Global framework launched in 2000 to realize sustainable growth
*6 Private sector-initiated Task Force on Climate-related Financial Disclosures (TCFD)
*7 International indicators chosen by the United Nations in September 2015, and set forth in the 2030 Agenda for Sustainable Development
*8 ESG indexes of U.S. company S&P Global to evaluate the sustainability of companies
*9 Toward realizing our corporate concept, spending time with patients and the people in the daily living domain or sharing experiences with them such as eating or working together in order to learn how they feel
*10 An initiative to conclude collaborative agreements with local governments and groups to create projects to identify and relieve the anxieties of local residents regarding people affected by dementia
Materiality Toward Effective Realization of Social Good through the hhc Ecosystem
*1 Stakeholders: Long-term investors (shareholders), patients and their families, employees, and the community
*2 For the material topics other than 1 to 5, the importance of the material topics within the same quadrant are equal
Related pages
- Realization of social good in dementia area
- Realization of social good in oncology area
- Realization of social good in global health
- Maximization of the value of human resources
- Financial strategies
- Enhancement of corporate governance (Enhancement of management oversight function)
- Enhancement of information disclosure
- Enhancement of information security
- Stable supply of high-quality products
- Compliance and risk management
- Protection and enhancement of intellectual property
- Business activities based on respect for human rights
- Environmentally friendly business activities
- Safety management on products
- Ethical and transparent drug discovery activities
1. Realization of Social Good in the Dementia Area
Long-term objectives, KPIs, and risks
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| FY2023 Progress |
Early establishment of LEQEMBI®*1 business and its value maximization |
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|---|---|---|---|
| FY2025 targets and KPIs |
Early establishment of LEQEMBI® business and its value maximization
• Early realization of approval and launch in all five regions*2
• Contribute to approx. 100,000 people living with AD a year globally and
generate social impact of approx. 260 billion yen in the U.S.
• Approval of subcutaneous formulations and maintenance dosing regimen
• Collaborate with partners to quickly realize the use and dissemination of blood-based biomarkers as the definitive diagnostic tool for AD
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| FY2030 targets and KPIs |
Realization of a society where people can live with peace of mind when they are diagnosed with AD
• Expand access to LEQEMBI® to contribute to approx. 900,000 people living with AD a year globally. Generate social impact of approx. 1.8 trillion yen in the U.S.
• Create next-generation dementia treatments following LEQEMBI®, initiate late-stage clinical trials, and submit for multiple projects including the anti-MTBR tau antibody E2814*3
• Provide new solutions that contribute to health and prevention that support the daily lives of people affected by the disease to 10 million people a year globally, in collaboration with other industries
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| Goal |
Establishment of a dementia ecosystem that supports and encompasses the people’s entire life from healthy to high-risk state, onset/treatment of disease, follow-up/prognosis by playing the role of a producer |
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| Major risks |
• Risk that LEQEMBI®’s market penetration would not be achieved as expected due to limitation of healthcare system infrastructure and increased competition in the market |
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*1 Antibody for Alzheimer’s disease produced as the result of a strategic research alliance between Eisai and BioArctic. Collaboration with Biogen. Generic name: lecanemab
*2 Japan, Americas, EMEA, China, Asia and Latin America
*3 Investigational. Discovered as part of research collaboration between Eisai and University College London
2. Realization of Social Good in the Oncology Area
Long-term objectives, KPIs, and risks
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| FY2023 Progress |
Value maximization of Lenvima® |
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|---|---|---|---|
| FY2025 targets and KPIs |
Value maximization of Lenvima® |
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| FY2030 targets and KPIs |
Contribution to patients with refractory cancers through new projects subsequent to Lenvima® |
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| Goal |
Cure of refractory cancers by creating innovative treatments, expansion of access, and realization of prevention based on a predictive model of cancer onset |
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| Major risks |
• Risk of not achieving the expected profits due to discontinuation or delay of the development of new indications for Lenvima® or the development plan of new projects |
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*1 KEYTRUDA® is a registered trademark of Merck Sharp & Dohme Corp., a subsidiary of Merck & Co., Inc., Rahway, NJ, USA. Projects for Lenvima® are under joint development with Merck & Co., Inc., Rahway, NJ, USA
*2 Investigational. Generic name: farletuzumab ecteribulin (FZEC)
*3 Investigational. Collaboration with PRISM BioLab
*4 Entered into a joint development agreement with Bliss Biopharmaceutical (Hangzhou) Co., Ltd. with option rights for a strategic collaboration
3. Realizing Social Good in the Global Health Area
Long-term objectives, KPIs, and risks
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| Progress until FY2023 |
Lymphatic filariasis (LF) |
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|---|---|---|---|
| FY2025 targets and KPIs |
LF Mycetoma Malaria |
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| FY2030 targets and KPIs |
LF Mycetoma Malaria |
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| Goal |
Elimination of diseases by creating treatments and expanding access, and contribution to reducing health disparities
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| Major risks |
• Risk of delays in elimination activities due to the deprioritization of LF countermeasures in endemic countries |
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A fixed exchange rate of US$1 = 115 yen is used to avoid overestimating/underestimating the social impact due to exchange rate fluctuations.
*1 In the 2024 Value Creation Report, the impact of DEC tablets used for two-drug regimen was calculated as half of the overall social impact of MDA implementation. However, the calculation method was revised to reflect the overall social impact of MDA implementation, rather than solely the impact of DEC tablets. This adjustment was made in consideration of the adoption of a new treatment regimen (triple-drug regimen) in the WHO treatment guidelines, as well as the importance of concomitant treatments and collaborative efforts with various partners in LF elimination. Accordingly, we have updated our social impact targets for FY2025 and FY2030.
*2 Based on the WHO LF elimination target by 2030
*3 Antifungal agent developed by Eisai
For details, please visit here.
4. Maximization of Value of Human Resources
Long-term objectives, KPIs, and risks
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| Fiscal 2023 Progress |
Penetration of the corporate concept hhc Increased employee engagement Enhancement of women’s participation to incorporate diversity Employee Impact |
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|---|---|---|---|
| FY2025 targets and KPIs |
Penetration of the corporate concept hhc Increased employee engagement Enhancement of women’s participation to incorporate diversity Employee Impact |
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| FY2030 targets and KPIs |
Penetration of the corporate concept hhc Increased employee engagement Enhancement of women’s participation to incorporate diversity Employee Impact |
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| Goal |
Enhancement of corporate value through solutions and innovation brought by maximizing the strengths and characteristics of diverse human capitals |
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| Major risks |
• Risk of difficulty in succession for important global positions |
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5. Financial Strategies
Long-term objectives, KPIs, and risks
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| Fiscal 2023 Progress |
Optimal capital structure and financial soundness Achieve both stable dividends and investment for growth |
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|---|---|---|---|
| FY2025 targets and KPIs |
Expansion of intrinsic corporate value (social impact + financial value) by expansion of contribution through LEQEMBI® and DEC tablets Pursue an optimal capital structure while ensuring financial soundness Achieve both stable dividends and investment for growth |
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| FY2030 targets and KPIs |
Maximization of intrinsic corporate value while the company is in rapid growth Increase financial robustness and secure growth investment capacity |
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| Goal |
Maximize mid- to long-term intrinsic corporate value
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| Major risks |
• Risk of not earning the expected revenue from LEQEMBI® and Lenvima® |
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*1 Rating by Rating and Investment Information, Inc. (R&I) (as of May 27, 2024)
*2 An indicator to evaluate whether the company is efficiently generating social impact; the sum of the social impact of LEQEMBI® and DEC tablets was divided by equity. Calculation was based on those two important products in which the estimation of social impact was completed