Shareholder value creation in Japanese pharmaceuticals

Shareholder Value Creation in Japanese Pharmaceuticals

Personnel Expense Optimization

Many Japanese pharmaceutical companies are significantly behind the Global Top level in terms of sales per employee

(Figure 8). In some companies, labor productivity is more than 50% lower.

Sales Representatives' Productivity Improvement

Furthermore, in terms of sales per sales representative, there is a gap in productivity of about five times

even among Japanese pharmaceutical companies (Figure 9). It can be said that it is urgent to improve sales

representatives' productivity by optimizing personnel placement.

Source: Annual reports and IR materials, SPEEDA

*1: weighted average

100

150

200

Global Top

Sales per employee (Weighted average index with 100 as Global Top, FY21)

FIGURE 8: PRODUCTIVITY PER EMPLOYEE COMPARISON OF JAPANESE PHARMACEUTICAL COMPANIES

AND GLOBAL TOP LEADERS

Japanese C

Japanese I

Japanese D

Japanese L

Weighted average

of Global Top

Japanese A

Japanese J

Japanese F

Japanese B

Japanese O

Japanese M

Japanese E

Japanese G

Japanese H

Japanese K

Japanese N

の

加

重

平

均

値

Source: Annual reports and IR materials, SPEEDA

Average

100

150

200

250

Sales per sales representative (Index with 100 as average, FY21)

FIGURE 9: PRODUCTIVITY PER SALES REPRESENTATIVE COMPARISON OF

JAPANESE PHARMACEUTICAL COMPANIES