Eisai’s Materiality (Material Topics)

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.

 

*1 Value Maximization, Stakeholder Theory, and the Corporate Objective Function (Michael C. Jensen, 2001)
  • *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 IFRS 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

1. Realization of Social Good in the Dementia Area
Long-term objectives, KPIs, and risks

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FY2024 Progress

Early establishment and maximization of value for the LEQEMBI®*1 business
• Approved and launched in five regions: Japan, Americas*2, China, EMEA*3 and EAGS*4
• Contributed to approx. 23,000 people a year globally and generated social impact in the U.S. at approx. 53 billion yen
• Approved for an intravenous infusion maintenance treatment in the U.S.
• Completed submission of an application for a subcutaneous formulations maintenance treatment in the U.S.

FY2025 targets and KPIs
Early establishment of LEQEMBI® business and its value maximization
• Early realization of approval and launch in all five regions*5 
• Contribute to approx. 35,000 people living with AD a year globally and generate social impact of approx. 80 billion yen in the U.S.*6
• Approved for intravenous infusion maintenance and subcutaneous formulations
• Collaborate with partners to quickly realize the use and dissemination of blood-based biomarkers as the definitive diagnostic tool for AD
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.
• Develop next-generation dementia treatments following LEQEMBI®, initiate late-stage clinical trials, and submit for multiple projects including the anti-MTBR tau antibody E2814*7
• Provide new solutions that contribute to health and prevention of disease, supporting the daily lives of approx. 10 million people a year globally affected by the disease in collaboration with other industries
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

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
• Risk of not achieving expected profits due to discontinuation or delay in development of nextgeneration dementia treatments
• Risk of delays or inefficiencies in R&D, manufacturing, and commercialization activities due to disagreements with partners

*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 North America
*3 Europe, Middle East, Africa, Russia, Oceania *4 East Asia Global South, South Korea, Taiwan, India, ASEAN, Central and South America, South Africa.
*5 The "early realization of insurance reimbursement" in all 5 regions, disclosed in Value Creation Report 2023, was revised in Value Creation Report 2024 in light of insurance reimbursement plans in each region
*6 Revised in view of LEQEMBI®’s contribution in fiscal 2024
*7 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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FY2024 Progress

Value maximization of Lenvima®
• Contributed to approx. 80,000 people a year globally
• Global sales revenue of 328.5 billion yen

FY2025 targets and KPIs

Value maximization of Lenvima®
• Submit for approval of new indications for KEYTRUDA®*1 and other treatment combination therapies
• Contribute to approx. 90,000 people a year globally and aim for annual product sales at 300 billion yen level, in addition to the upside expected from new indications*2

FY2030 targets and KPIs

Contribution to patients with refractory cancers through new projects subsequent to Lenvima®
• Early submission for MORAb-202 and E7386*3
• Early clinical introduction of new projects based on efficient drug discovery approach, utilizing Deep Human Biology Learning (DHBL), to submit for early approval
• Acquire products or co-develop and co-commercialize with partner companies to enhance pipeline and maximize its value

Goal

Cure of refractory cancers by creating innovative treatments, expansion of access, and realization of prevention based on a predictive model of cancer onset

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
• Risk of delays or inefficiencies in R&D, manufacturing, and commercialization activities due to disagreements with partners


*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 Due to primary endpoint of clinical study for non-small cell lung cancer, etc., not being achieved, the "product sales at the 500 billion yen level" disclosed in Value Creation Report 2023 was revised in Value Creation Report 2024
*3 Regarding BB-1701, because it was agreed that future global expansion and promotion will be implemented by Bliss Biopharmaceutical Co. Ltd., on its own, and Eisai decided not to exercise the option for a strategic partnership agreement, this has been removed

3. Realizing Social Good in the Global Health Area
Long-term objectives, KPIs, and risks

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Progress until FY2024 

Lymphatic filariasis (LF)
• Provided a cumulative 2.52 billion DEC tablets free of charge, generating a social impact of approx. 478 billion yen
• Expanded and strengthened support for elimination activities through provision of DEC tablets free of charge, holistic initiatives and completed mass drug administration (MDA) in 15 countries

Malaria
Initiated clinical study of a new drug candidate

FY2025 targets and KPIs

LF
• Expand and enhance support for elimination activities in India, the world’s largest LF-endemic country, through the free provision of DEC tablets and holistic efforts. Complete MDA in 19 other countries*1,2
• Generate approx. 520 billion yen (4.5 billion USD) / year*3 in social impact by contributing to approx. 29 million people through the provision of DEC tablets

Mycetoma
• Complete regulatory submission for E1224 in Sudan. Conduct epidemiological surveys to establish journey for patients with mycetoma, a disease with immature understanding

Malaria
• Initiate clinical studies of a new drug candidate

FY2030 targets and KPIs

LF
• Complete MDA in a total of 30 countries*1,4 including India, through free provision of a total of 3.9 billion DEC tablets
• Create approx. 560 billion yen / year*3,4 in social impact by contributing to approx. 31 million people with the DEC tablets

Mycetoma
• Facilitate cross-sectoral collaboration to establish a journey for patients with mycetoma
• Obtain approval of E1224 in Sudan and establish a sustainable delivery method
• Contribute to people living in endemic countries other than Sudan by providing E1224

Malaria
• Submit for new treatments and achieve clinical proof of concept (POC) of one other drug candidate

Goal

Contribute to the eradication of diseases and reduction of health disparities through the creation of new treatments and expanded access

Major risks

• Risk of delays in elimination activities due to the deprioritization of LF countermeasures in endemic countries
• Risk of delays in elimination activities, drug development, review processes due to new infectious disease pandemics or conflicts
• Risk that duration of clinical trials would be longer than planned due to inadequacies in the clinical trial environment characteristic of neglected tropical diseases and malaria

*1 Based on the WHO LF elimination target by 2030
*2 Revised the fiscal 2025 target based on the latest WHO updates reflecting the suspension and delays of MDA due to the deterioration of political conditions and the spread of COVID-19 in LF-endemic regions

*3 In Value Creation Report 2024, we showed the social impact from MDA implementation as impact from DEC tablets proportionally distributed under the assumption of administration of two drugs, in light of the addition of new treatments (three-drug administration) to the WHO treatment guidelines, the combined drugs in achieving LF elimination, and the importance of the various partnerships, we have made the change to show the whole social impact from MDA implementation, and not just the social impact from DEC tablets

*4 Plan to revise KPI in response to expected changes to the LF elimination roadmap to 2030 by the WHO in 2025


 

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4. Maximization of Value of Human Resources
Long-term objectives, KPIs, and risks

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Fiscal 2024 Progress

Penetration of the corporate concept hhc
• 95% penetration of corporate concept

Increased employee engagement
• Percentage of employees who are highly engaged to the company in the Global Engagement Survey: 85%

Enhancement of women’s participation to incorporate diversity
• Ratio of female managers in Japan: 13.6%

Employee Impact
• Human resource investment efficiency: 82%

FY2025 targets and KPIs

Penetration of the corporate concept hhc
• 100% penetration of corporate concept

Increased employee engagement
• Percentage of employees who are highly engaged to the company in the Global Engagement Survey: More than 90%

Enhancement of women’s participation to incorporate diversity
• Ratio of female managers in Japan: 15%

Employee Impact
• Human resource investment efficiency: 82%

FY2030 targets and KPIs

Penetration of the corporate concept hhc
• 100% penetration of corporate concept

Increased employee engagement
• Percentage of employees who are highly engaged to the company in the Global Engagement Survey: More than 90%

Enhancement of women’s participation to incorporate diversity
• Ratio of female managers in Japan: 30%

Employee Impact
• Human resource investment efficiency: 87%

Goal

Enhancement of corporate value through solutions and innovation brought that maximize the strengths and characteristics of diverse human capitals

Major risks

• Risk of difficulty in succession for important global positions
• Risk of difficulty in securing and developing human resources that match company management directions

5. Financial Strategies
Long-term objectives, KPIs, and risks

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Fiscal 2024 Progress

Optimal capital structure and financial soundness
• Ratio of equity attributable to owners of the parent: 60.7%, Net DER: -0.12, Credit rating*1: AA-

Achieve both stable dividends and investment for growth
• Investment in growth of LEQEMBI® and maintain dividend of 160 yen

FY2025 targets and KPIs

Expansion of intrinsic corporate value (social impact + financial value) by expansion of contribution through LEQEMBI® and DEC tablets
• Impact on equity*2: 0.65 times level

Pursue an optimal capital structure while ensuring financial soundness
• Ratio of equity attributable to owners of the parent: 60% level, Net DER: - 0.3 – +0.3, Credit rating: single A level

Achieve both stable dividends and investment for growth
• In principle, pay dividends within the range of free cash flow on a multi-year level and aim to maintain a dividend of 160 yen

FY2030 targets and KPIs

Maximization of intrinsic corporate value while the company is in rapid growth
• ROE: 25% level, DOE: 15% level
• Impact on equity*2: 2 times level

Increase financial robustness and secure growth investment capacity
• Equity attributable to owners of the parent: more than 1 trillion yen, ratio of equity attributable to owners of the parent: 70% level, Net DER: - 0.3 – +0.3

Goal
Maximize mid- to long-term intrinsic corporate value
Major risks

• Risk of not earning the expected revenue from LEQEMBI® and Lenvima®
• Risk of not earning the expected revenue due to discontinuation or delay of development plans for the subsequent products
• Risk of impairment of goodwill and intangible assets acquired through acquisitions and the introduction of products and development

*1 Rating by Rating and Investment Information, Inc. (R&I) (as of May 30, 2025)
*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