00:00On the yen, what do you make of it?
00:02Because your company is among Japanese companies
00:05which have benefited from a weaker currency.
00:10Thank you for having me.
00:12So with regard to the exchange rate,
00:14basically the weaker yen, a stronger dollar
00:19is an advantage for top-line growth.
00:23But on the other hand,
00:25Daiichi Sankyo is spending a lot of expenses
00:29such as clinical trials outside of Japan.
00:33So those expenses have a negative effect.
00:37So when it comes to the bottom line,
00:39the change of exchange rate is neutral.
00:44So there's no reason for you to review your numbers,
00:48so to speak.
00:49I mean, we did have the authorities,
00:50both from the U.S. and Japan,
00:52saying they will do what it takes to support the currency.
00:55More intervention could come.
01:00So we will be watching carefully
01:03how the exchange rate will develop.
01:07But in the coming three quarters from now onwards
01:12for the fiscal year 2026,
01:14we set the 155 yen to one U.S. dollar.
01:21So that is the very good rate for us
01:26to be trusting on our annual forecast.
01:34So would 155 be the threshold for you?
01:37You're comfortable for the currency to be at that level,
01:41Okuzawa-san?
01:43So as I said, we are the neutral in terms of the bottom line.
01:50So therefore, how the exchange rate will be changing
01:55would not affect to our business, basically.
02:02The other challenging environment is actually
02:04the tariffs being imposed by the U.S. on drug producers.
02:09How are you assessing the possibility of that 100% tariff next year,
02:15200% the following year?
02:16What's your take on it?
02:17And how are you positioning for it?
02:22Yes.
02:22The numbers such as 100% or 200% tariff was reported.
02:29But my understanding is that those high rate of tariff
02:33will be applicable for the generic medicines in the United States.
02:40So Daiichi Sankyo is the global innovative pharmaceutical industry company.
02:46So that means our innovative products
02:50would not have such a negative impact
02:53from the tariff at the moment.
02:55That's my understanding.
02:57So tariff exclusion for Daiichi Sankyo, correct?
03:04So our flagship product, like NHATU that always,
03:09ADC product, antibody drug conjugate.
03:13And so far, what we have heard
03:16from the United States administration is
03:19these ADC products will be exempted from the tariff.
03:25So that is good news for us.
03:29Okuzawa-san, we know that Daiichi Sankyo
03:32has a strong relationship with AstraZeneca,
03:35which is now, according to some reports,
03:38mulling a merger with Bristol-Myers.
03:41What's your take on the news that we're hearing right now?
03:47So I'm aware of those reports,
03:51but let me decline the comments.
03:54Just I would like to say
03:56our relationship between Daiichi Sankyo and AstraZeneca
04:01for our ADC products and NHATU that ways
04:05has been going very well.
04:08So therefore, whatever AstraZeneca would develop their future
04:15with any other company,
04:17I'm very much happy to collaborate continuously with AstraZeneca.
04:24Might the merger reshape the relationship
04:27that Daiichi Sankyo has with AstraZeneca
04:30because that potential merger would produce
04:33one of the largest drug makers in the world?
04:39I don't think the potential merger of AstraZeneca
04:44would have negative impact to our ongoing relationship
04:48because the both parties, Daiichi Sankyo and AstraZeneca,
04:52are so happy about the great success
04:55of our partnership for NHATU and Datraway.
05:00My conviction is AstraZeneca
05:03will continuously be trusting Daiichi Sankyo
05:07because these two partnered programs
05:10are very much important for them and for us.
05:14If it is an important relationship,
05:17are you looking to expand that relationship?
05:21It depends on the development program.
05:25So we have a lot of new pipelines
05:29and depending on the size or markets
05:33or technology, etc.,
05:36we have always the option to develop
05:39together with a strong partner like AstraZeneca
05:42or we develop by ourselves
05:46and commercialize the products by ourselves.
05:49Those are always the strategic options for us.
05:54And Okuzawa-san,
05:55we know that in terms of cancer drugs,
05:58there is a huge race
06:00to produce the next new cancer drug.
06:03How do you say competitive?
06:05How do you stay ahead of your rivals,
06:07especially those in China,
06:09which is scaling so quickly?
06:13So we are aware that China
06:16is emerging as an innovation country
06:20because of the very much intensive
06:24the innovation creation
06:26by Chinese pharmaceutical companies.
06:30and I think this is a great opportunity
06:33for Daichi Sankyo
06:34because the many Chinese companies
06:37are working in the ADCs,
06:40which is our great advantage
06:43because Daichi Sankyo is the originator
06:46of our unique DXD ADC technology.
06:51And further,
06:52our discovery research team
06:54is working on the new generation ADC
06:57that would have the different payload,
07:00different technology.
07:03So therefore,
07:04we would like to explore
07:06any kind of opportunity
07:08to work with the emerging,
07:11innovative Chinese companies.
07:16What's crucial when it comes to Chinese drugs
07:18is that those oncology drugs
07:20produced by China
07:21are often launched
07:22at 30 to 70 percent discount.
07:25How do you defend
07:26the kind of premium pricing
07:28you have at Daichi Sankyo?
07:33So primarily the answer
07:36is our technology advantage.
07:40And based upon our DXD ADCs,
07:44the products like NHAT-2
07:46or Datraway
07:47have been delivering
07:50the fantastic clinical data.
07:54So these clinical data
07:56are always the base
07:58for the new indications
08:02with which we can deliver
08:04our innovative advantage
08:07to the patients.
08:09So therefore,
08:09whatever Chinese companies
08:11would bring their innovation
08:13in the future,
08:15Daichi Sankyo is ready
08:17to fight against
08:18in terms of science and technology.
08:22And as far as we can deliver
08:24continuously the cutting-edge technology
08:26that could lead
08:28to the advancing
08:30the clinical data
08:31that we can explore
08:34and we can secure
08:35our competitive position,
08:37I believe.
08:38You talked earlier
08:40about possibly partnering
08:41with Chinese drug makers.
08:44Where are you with that?
08:45Are you in conversations?
08:46Can we expect a partnership
08:48in the next 12 to 24 months?
08:51So let me decline
08:53the comments on that.
08:55But we are always looking
08:57for the opportunities
08:59to collaborate
09:01with the pharmaceutical companies
09:04in the United States,
09:06in Europe,
09:06and now also in China.
09:09We have a very strong
09:11business development team
09:12that is always looking
09:15for the opportunities
09:16for in-licensing
09:18and also the out-licensing.
09:21So in that sense,
09:22I'm very much looking forward
09:24to talking to
09:25the Chinese companies
09:27and discussing
09:28the potential collaboration
09:30for future.
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