Shionogi Follows Up: Value, Returns Strategy Unveiled

Shionogi & Co., Ltd. has outlined a strategic plan to increase corporate value by focusing on capital costs and stock prices, building on its strong drug discovery capabilities. The company aims to improve its Price-to-Book Ratio (PBR) and Price-to-Earnings Ratio (PER) through enhanced corporate communication. Key financial targets for STS2030 Revision include a revenue of 800.0 bn yen and a 15% overseas sales CAGR starting from FY2025. For STS Phase 2 (up to FY2025), revised targets include a revenue of 530.0 bn yen and EBITDA of 196.0 bn yen.

The strategy involves significant investments, with a total cash allocation funding source of 1.3 T yen for FY2023-FY2025. This includes 300.0 bn yen for research and development (with 211.2 bn yen already spent by FY2024), and 880.0 bn yen for further growth. Shareholder return policies include a DOE target of 4% or higher for FY2025 (FY2024 result: 4.0%), with planned dividends of 120.0 bn yen (92.6 bn yen spent by FY2024) and share buybacks of 75.0 bn yen. The company’s core HIV business is expected to grow steadily, while overseas business, driven by cefiderocol, continues to expand.