Strategic Alliance with Roche | Investor Relations | CHUGAI ...

The Roche Group contributes to medicine through its two business segments of pharmaceuticals and diagnostics. Successful new business model featuring management ... Home InvestorRelations StrategicAlliancewithRoche Newbusinessmodelthatimplementsmanagerialautonomy In2002Chugaicompletedastrategicalliancewiththeglobalpharmaceuticalcompany,Roche,makingusamemberoftheRocheGroup. InOctober2002,ChugaimergedwithNipponRochebasedonastrategicallianceagreementwithRoche,oneoftheworld’sleadingpharmaceuticalcompanies,andRocheacquiredamajorityofChugai’sstock.ChugaibecameamemberoftheRocheGroup. AboutRoche Establishedin1896andheadquarteredinBasel,Switzerland,RocheistheNo.1pharmaceuticalcompanyintheworldbyrevenues,withbusinessoperationsinmorethan150countries.TheRocheGroupcontributestomedicinethroughitstwobusinesssegmentsofpharmaceuticalsanddiagnostics. SuccessfulnewbusinessmodelfeaturingmanagementautonomyandnochangeincompanynameorCEO. Rocheholds 59.89% ofChugai’soutstandingsharesbasedonthestrategicallianceagreement. (61.16%ofthetotalnumberofsharesissuedexcludingtreasurystock)However,unliketypicalmergers,thecompanynameandCEOofChugaiwerenotchanged,andtheagreementallowedChugaitomaintainitsmanagementautonomy.Inaddition,bothpartiesagreedtocooperatetokeepChugaialistedcompanyonthePrimeMarketoftheTokyoStockExchange. AboutlimitsonRoche’sholdingofChugaistock AboutlimitsonRoche’sholdingofChugaistock Period MaximumShareholdingPercentage Oct.1,2002–Sept.30,2007 50.1% Oct.1,2007–Sept.30,2012 59.9% Oct.1,2012andthereafter CooperateinmaintainingChugai’slisting ThenewrevenuebaseenablesChugaitoconcentrateinvestmentsonhighlyinnovativetechnologies. ThestrategicalliancegivesChugaitheexclusiverighttodevelopandmarketRocheproductsinJapanandallowsChugai’sownproductstoreachglobalmarkets ThroughthestrategicalliancewithRoche,ChugaigainedexclusiverighttodevelopandmarketRocheproductsinJapan.Atthesametime,Chugaigainsaccesstotheglobalmarketforitsin-houseproductsbyout-licensingthemtoRoche.Thisstableearningsfoundationisasignificantadvantageofthestrategicalliance. Meanwhile,RochecanmarketChugaiproducts–whichwecreatethroughhighlyinnovative,specializedresearch–intheglobalmarket.Itisawin-winrelationship. Agreementonproducts Agreementonproducts ChugaihasfirstrefusalrightstodevelopandsellRocheproductsinJapan RochehasfirstrefusalrightstodevelopandsellChugaiproductsinallcountriesoftheworld excludingJapan,SouthKoreaandTaiwan allofitsproductstoRocheattheachievementofearlyPoC* Chugairetainsco-promotionrightsintheUnitedKingdom,GermanyandFrance(aco-promotionrightinChinaistobediscussedonaproduct-by-productbasis) *Ademonstrationthatthetherapeuticeffectconceivedintheresearchstageiseffectiveinhumans.EarlyPoCmeansthatinadditiontosafety,signsofefficacyorpharmacologicaleffecthavebeenconfirmedinalimitednumberofcases. ThestableearningsfoundationallowsChugaitoconcentrateinvestmentonhighlyinnovativeproprietarytechnologiesanddrugdiscovery. Sincethestrategicalliance,thein-licensingofRocheproductshasexpandedourproductlineupandourdevelopmentpipeline.ChugaihasgainedtheNo.1shareoftheoncologymarketinJapan.* InadditiontoR&D,otherbusinessoperationswerestrengthenedaswell,andproductsfromChugai’sownresearchwereabletogrowintoglobalproductsthroughtheRocheGroup’snetwork.ThisstableearningsfoundationallowedChugaitoconcentrateinvestmentonhighlyinnovativetechnologiesanddrugdiscovery. *Copyright©2022IQVIA.Source:JPM2021.Reprintedwithpermission.Unauthorizedreproductionorcopyingprohibited.ThescopeofthemarketisdefinedbyChugai. ChugaireportsitsresultsonaCorebasisfrom2013inconjunctionwithitsdecisiontoadoptIFRS.CorebasisresultsaretheIFRSbasisresultsadjustedbyexcludingnon-Coreitems.Theitemsregardedasnon-CorebyChugaimaydifferfromthoseconsideredassuchbyRocheduetodifferencesinbusinessscaleandrangeaswellasotherfactors. ThesuccessofthealliancehashelpedChugaitoestablishworld-classantibodyengineeringtechnologyandpursuethedevelopmentoftechnologiesformid-sizemoleculedrugsdiscovery. ThestablerevenuesgainedthroughthestrategicalliancewithRochehasenabledChugaitoestablishworld-classantibodyengineeringtechnologiesandstrivetocreatethecapabilitiesformid-sizemoleculedrugs. Also,sincethestrategicalliancebeganwithRoche,productsdiscoveredbyChugaihavereceivedwideacclaim,includingbreakthroughtherapydesignationsbytheU.S.FoodandDrugAdministration(FDA). TostrengthencollaborationwithRochefromtheearlystagesofresearchanddevelopment,ChugaiandRochemadeapartialamendmenttothelicensingagreementinAugust2014withregardtotheout-licensingofChugai’sin-houseproductstoRoche. Forfurtherdetails NewsRelease“AmendmentofBusinessArrangementsRegardingtheConditionsforOut-LicensingChugaiProductsBasedontheStrategicAlliancebetweenChugaiandRoche(August28,2014)”[PDF178KB] ViewinJapanese SeehowChugaicomparestoothercompanies Home InvestorRelations StrategicAlliancewithRoche AboutChugai MessagefromtheCEO Chugai’sFiveStrengths CompanyOutline OurVision OurStrategy HistoryofChugaiPharmaceutical ChugaiGroup R&D DigitalTransformation"CHUGAIDIGITAL" Videos&Advertisements PressRoom News MediaConference InvestorRelations ManagementPolicy FinancialResults Reports&Downloads ShareholderInformation CorporateGovernance ESGatChugai MainProducts/DevelopmentPipeline SeehowChugaicomparestoothercompanies StrategicAlliancewithRoche Chugai’sFiveStrengths Events&Presentations Contacts&Information FAQs Recruitment ChugaiRecruitingSite Sustainability BasicPolicy(CreationofSharedValue) SustainabilityandBusinessStrategy SustainablePatient-CentricHealthcare GlobalHealth HumanResourcesandDiversity&Inclusion EthicsandCompliance SupplyChainManagement HumanRights SocialContribution GlobalEnvironment HealthandProductivityManagement Governance ExternalEvaluations ActivityReports Data Chugai'sTransparencyGuidelines Youarenowmovingtoanexternalwebsite. 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