Message from Top Management

We are entering an era of intensifying geopolitical instability, in which the growing complexity of risk assessment has significantly undermined predictability. I believe there has never been a more important time to reflect on the resilience of nations and societies. In his later years, Professor Ikujiro Nonaka articulated the idea that a nation’s comprehensive power consists of Diplomacy, Intelligence, Military, and Economy, with Soft Power later added to these elements. From these initials, he described resilience as DIME+S. From our perspective, it is essential to take a comprehensive view of DIME+S in all our decision-making. Eisai’s business centers on human health, which lies at the core of soft power, and it is therefore essential to articulate and give meaning to our contributions from the standpoint of strengthening societal resilience. In this sense, defense spending and healthcare-related spending should never be viewed as being in a trade-off relationship. Both are indispensable to enhancing national resilience, and there can be no compromise in the healthcare domain.

　

Since 2013, approximately three billion tablets of diethylcarbamazine (DEC tablets), a treatment for lymphatic filariasis, have been manufactured at Eisai’s Vizag plant in India and provided at price zero to 33 countries in the Global South. This initiative has contributed to the elimination of lymphatic filariasis in eight countries.

　

While this effort has delivered the significant benefit of disease elimination, its impact extends well beyond this outcome. It also contributes to strengthening the resilience of maritime nations involved in critical sea lanes in Asia, including those connected to India — sea lanes that are essential for trade and transport of key resources such as oil.  In Pacific island nations, the initiative has diplomatic significance, contributing to trust‑based relationships and cooperative engagement that are consistent with Japan’s broader commitments to global health and international cooperation. In this way, this initiative demonstrates the strength of soft power. Furthermore, as future economic growth is expected to be driven by regions such as Africa and South America, this initiative also contributes to expanding the productive population in these regions, thereby strengthening societal resilience.

　

As conflicts continue to occur across the globe, the need to strengthen military capabilities has intensified, and the importance of national defense is increasingly emphasized in government budgets and across industries. However, in line with the concept of national resilience embodied in DIME+S, it is equally vital to simultaneously strengthen and prioritize the soft power dimension— IT, entertainment, information, culture, and healthcare. We strongly believe that efforts to reinforce military and intelligence capabilities must not come at the expense of weakening soft power.

　

Looking at Japan’s demographics, concerns have been raised about the decline in the working-age population due to a declining birthrate and a rapidly aging society. However, I question the assumption that those aged 65 and over should no longer be considered part of the productive population. Rather, we should view this as the emergence of a “mature society” and focus on maintaining and enhancing the health of this generation. The leading causes of death in Japan have undergone a significant structural shift— from cardiovascular and respiratory diseases in the 1990’s to cancer and dementia, particularly among the elderly¹. While both the public and private sectors have made progress in addressing these challenges, especially in the field of cancer, two key legislative frameworks—the Cancer Control Act (Act No. 98 of 2006) and the Act on Promotion of Cancer Registries (Act No. 111 of 2013)—have produced notable outcomes, including the development of treatment systems and publicly funded screening programs for major cancer types².

　

In contrast, in the field of dementia, initiatives under the Basic Act on Dementia to Promote the Realization of an Inclusive Society (Act No. 65 of 2023), including publicly funded screening programs, are only just beginning to take shape. Since Eisai launched the Alzheimer’s disease treatment ARICEPT^® in the United States in 1997, we have continued to pursue research and development as a pioneer in the field of dementia. After nearly a quarter of a century, these efforts culminated in the successful launch of LEQEMBI^®, a novel therapy that targets the underlying cause of Alzheimer’s disease. Throughout this journey, we have been consistently encouraged by—and remain deeply grateful for—the support of patients, their families, and healthcare professionals. The ability to treat dementia and pursue the possibility of a future cure has a profound impact on enhancing societal reassurance and security. In addition to enabling people living with dementia to continue participating in society, preventing the lost employment opportunities among family members who serve as caregivers also has a substantial social and economic impact³.

　

Another important contribution to sustainability management is ensuring the stable supply of medicines. Pharmaceuticals that are essential to life and quality of life must be delivered reliably to those who need them. To achieve this, it is imperative to establish a robust and resilient supply chain. For many years, pharmaceuticals have effectively been traded on a tariff-free basis under international agreements among major countries. Recently, however, they have increasingly been exposed to the risk of tariffs due to geopolitical factors. In addition, companies must be prepared to respond to a wide range of risks, including natural disasters, cyberattacks, and human error. Even when additional production is implemented at an existing manufacturing site, securing supply requires at least two to three years to complete stability testing and obtain regulatory approval.

　

Beyond issues at individual facilities, it is also essential to maintain appropriate inventory levels and ensure that back-up manufacturing sites are always in place. This requires continuous monitoring and sustained investment. When quality issues occur, they can lead to production suspensions, plant shutdowns, or product recalls, ultimately disrupting the stable supply of medicines. In today’s pharmaceutical industry, ensuring stable global supply has become a management priority of the highest order.

　

The pharmaceutical supply chain comprises raw material procurement, active pharmaceutical ingredients, formulation, packaging, inspection, and distribution. By combining in-house manufacturing with contract manufacturing to leverage the strengths of each, companies establish geographically diversified supply chains. At Eisai, in addition to our own manufacturing sites in Japan, India, China, and the United Kingdom, we also utilize production capabilities of business partners and contract manufacturing organizations with specialized technologies. As pharmaceutical modalities continue to evolve, production lines must be updated accordingly. This requires investment decisions that reflect market forecasts, geopolitical considerations, and the prioritization of technological capabilities. In this regard, Eisai is committed to contributing to sustainability by fulfilling, in a modern context, our enduring principle that “We are manufacturer”.

　

The importance of sustainability continues to grow and now encompasses key contemporary management priorities. Eisai remains firmly committed to advancing sustainability as one of its highest-priority management imperatives.