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## Astellas’ Business Environment 

There are signs that the global economy is recovering gradually. Prescription drug markets around the world are expected to grow steadily, with increasing medical needs as a background. In recent years, the number of new drugs gaining regulatory approval in the U.S., Europe and Japan has also been very stable. 

Yet, the fact remains that the pharmaceutical industry still faces various challenges. Controlling the cost of health- care is a critical issue for governments worldwide, and both developed and emerging countries are promoting cost-saving measures such as cutting drug reimbursement prices or promoting greater use of generics. Regulatory authorities are introducing stricter safety criteria and dem- onstrating added value of new drugs compared to existing therapies is more demanding than before. This requires more activities in development and marketing for pharma- ceuticals each year. 

The business environment surrounding the pharmaceu- tical industry is changing faster than ever before. There is a trend toward business restructuring on a global level as a way of surviving fierce competition. To realize sustainable growth amidst constant change, we need a business model to maximize our strengths coupled with the flexibility to respond to change. 

## Astellas’ Raison d’Être and Long-Term Value Creation 

At Astellas, our stated business philosophy is to “contribute toward improving the health of people around the world through the provision of innovative and reliable pharma- ceutical products.” Our unchanging identity is to turn inno- vation into value and to deliver this for patients worldwide. 

Our business is creating new medicines that will con- tribute to better health for people around the world, and I believe it is highly connected to social value. We also  recognize that the healthy development of society is a 

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prerequisite for the sustainable growth of Astellas and the entire pharmaceutical industry. Therefore, since its incep- tion, Astellas has practiced CSR-based management based on a strong awareness of its social responsibilities. This means that we aim to grow our business through contributing to human health and be recognized as a valued corporate citizen by society in general. We will continue to implement CSR-based management by constantly moni- toring all of our corporate activities from a CSR perspective and taking appropriate action where necessary. 

There are two aspects to Corporate Social Responsibility (CSR) at Astellas. The first is “value protection,” which enables the sustainable growth of society and the Company through measures such as environmental activities and rigorous compliance. The second aspect is “value  creation,” which is to create stakeholder value by solving social issues and, at the same time, create enterprise value by assimilating such a process into our business growth and future business opportunity. At Astellas, we see our core business of discovering new drugs as a source of enterprise value creation that underpins CSR. 

In line with this concept, we have been supporting the United Nations (UN) Global Compact since October 2011. We have incorporated its ten principles covering the four fields of human rights, labor, the environment and anti- corruption into our daily business activities. Through this endorsement of the UN Global Compact, we have enhanced the quality of our CSR-based management. 

## Business Model for Continuous Value Creation 

We are pursuing a Global Category Leader (GCL) business model at Astellas to continuously generate value. Based on our R&D capabilities, we aim to establish a competitive edge across multiple therapeutic areas with a high level of unmet medical needs by supplying the global market with high-value-added products. This is the way we aim to build 

* For further details, please refer to pages 63–64. 

