About Ono

Management Policy

(1)Corporate philosophy and policy

The Group is "Dedicated to Man's Fight against Disease and Pain." Under this corporate philosophy, we are committed to fulfilling unmet medical needs. We aim to develop innovative new drugs that deliver true benefit to patients. We are highly aware of our responsibility as a pharmaceutical company dealing in medicinal drugs upon which human lives depend, and we are working to further strengthen our level of compliance to ensure that all our actions not only fully comply with all legal regulations but also are based on higher ethical standards.

(2)Business Model

ONO is an R&D-based pharmaceutical company specializing in prescription medicines. We focus our management resources on our drug discovery effort. In order to achieve sustainable growth, we believe in holding tight our finite management resources and focus on developing new drugs. Not only do we take up the challenge of discovering and developing our own innovative drugs, we also in-license promising new candidate compounds from around the world. This is ONO’s business model.

. In-House Drug Discovery: Compound-Orient
We have pursued our unique Compound-Orient approach to developing novel drugs by identifying priority areas such as bioactive lipids and enzyme inhibitors, instead of targeting specific disease areas, by collecting a “library” of compounds that act on diverse targets, and by finding drugs that are useful for treatment of diseases from the library. Meanwhile, we are also putting efforts into development of innovative and novel drugs in areas that are new to us, for example, biopharmaceuticals. We have identified the areas of oncology and supportive care in cancer as key strategic areas, and are moving ahead with research in these areas.

. In-House Drug Discovery: Open Innovation
We are driving drug discovery in different areas through the adoption of world-leading technologies and knowledge in various fields. We will continue promoting the industry-academia open innovation strategy to accelerate collaboration with leading research institutions at home and abroad, with the aim of developing creative pharmaceuticals in areas with unmet medical needs and innovative drugs in oncology.

. Licensing Activities
We will vigorously pursue in-licensing of new drug candidates for stable expansion of our development pipeline for the future. The disease areas we concentrate on include oncology and supportive care in cancer, diabetes, and niche areas. In these areas, we aim at in-licensing of new drug candidates that have high value in terms of corporate strategy and efficiency. For global business (excluding Asia) of in-house developed new drug candidates, we adopt a basic strategy of licensing out on a per-developed-compound basis to our partners which have outstanding development and commercialization capacities.

(3)Growth Strategies

In order to sustain ONO's growth trajectory, we must maximize the product value of drugs. By doing this, we will achieve dramatic growth in Japan. We will boost our R&D capability so that we can discover innovative new drugs. To expand our overseas business, we intend to engage in the following actions.

● Maximizing Product Value
Through active R&D efforts, company-wide collaboration and enhanced HR training capacity, we will achieve expedited market launch and additional indication approval and peak sales in the shortest period from launch. In addition, we will develop a strategy formation that constantly ensures competitive advantage by adjusting with agility to environmental changes in each stage of the product life cycle. We will thereby maximize the potential of every product we offer.

● Game-changing R&D
Together with drug discovery achieved through Compound-Orient, we will identify priority domains for research such as oncology and focus management resources to enhance our specialism. We will enhance research and drug discovery alliance with external partners so that we can strengthen our highly original pipeline and aim to develop first-in-class drugs. We will drive forward activities in areas with great medical needs, by in-licensing innovative compounds and acquiring technologies.

● Globalizing Business
We want to supply the world with new drugs that we have created. We are reinforcing overseas business expansion in anticipation of our own overseas marketing of specialty products such as anticancer drugs and other specialty medicines. In South Korea and Taiwan, we have set up wholly owned subsidiaries and have started selling our products. We are looking to engage in sales in Europe and America and will make preparations by improving and strengthening our development system.

● Strengthening Corporate Infrastructure
We will continue to reinforce our operational infrastructure, which we need to achieve in order to expand our overseas business and to beat off the intense competition with other companies. We need to adapt to diverse changes in our business environment and eliminate competition. For this purpose, we must train human resources and encourage diversity so that we can have a stronger framework for development. We have identified priority areas for CSR activities: corporate governance; innovative pharmaceutical products; human resources and human rights; the environment; fair operating practices; and society. We will fulfil our social responsibility towards all stakeholders through our activities.

(4)Basic Policy Concerning Dividends

ONO considers the redistribution of profits to shareholders as a one of vital management policies. We will prioritize stable dividend distribution in the medium to long term while taking account of our business results and general social conditions, making appropriate distribution of our profits in line with our business performance.