Picture this: Fujifilm as a pharma company
This article was originally published in Scrip
Fujifilm may be synonymous with photography products, but the diversified Japanese group is now looking to remake its own image - into a company with pharmaceuticals as a core business.
Facing flat or declining revenues and profits from its current mainstay imaging and document solutions operations, Fujifilm Holdings said that its medical systems and pharma activities provided the bright spots within the information solutions division (where they are grouped) in the fiscal first half ended 30 September.
At a presentation in Tokyo earlier this week on its long-term plans for the pharma sector, the company stopped short of setting specific sales targets for the business, within which the anti-infective-led sales of its Toyama Chemical subsidiary now account for close to half of revenues.
But it did unveil a 10-year outline designed to show it is serious about building up a presence across biologics - including biosimilars - oncology, contract manufacturing and "super generics" using advanced formulation technology, that it expects will drive a more than three-fold expansion in overall pharma revenues.
While the firm does not yet break out pharma sales, when combined with life sciences (functional cosmetics and supplements) and medical systems, the business saw solid revenue growth of 12% to ¥150.4 billion ($1.83 billion) in the period. Total group revenues meanwhile slipped by 2% to ¥1,061.6 billion.
Fujifilm has actually been reducing its exposure to traditional photography-related products for several years, in a strategic shift to healthcare that has seen the group acquire capabilities ranging from the contract production of biologics to antibody discovery.
It is now looking to further strengthen the "treatment" pillar of its healthcare operations to complement a strong presence in diagnosis through medical imaging systems and equipment, and its growing footprint on the prevention side, where it has supplements and functional cosmetics and is also looking to expand.
The total pharma business, which also includes a radiopharmaceuticals arm, the equally owned Fujifilm Kyowa Kirin biosimilars joint venture, and the antibody discovery firm Perseus Proteomics, is expected to become profitable as a whole by the end of March 2014, Fujifilm said.
Key short-term plans presented included the planned start of US clinical trials next year with FF-21101, an "armed antibody" radiolabelled with the beta-emitting yttrium isotope 90y, for the treatment of intractable solid tumors such as lung and pancreatic cancer.
Other high priority but still preclinical stage oncology projects include FF-10501, an oral small molecule for myelodysplastic syndrome, and FF-10502 for solid cancers.
Toyama, which is two-thirds held by Fujifilm and 34% by Taisho Pharmaceutical, is awaiting the approval in Japan of the antiviral for flu type A and B, favipravir (T-705), while a neuroprotective therapy for Alzheimer's disease, T-817MA, is in Phase II in the US.
A recurring theme across the business is the planned application of photo-derived technology (such as nanoparticle drug formulations) and production processes to cut synthesis steps, reduce manufacturing costs and improve profits. This approach has already "rapidly improved profitability" at Toyama, where an operating margin of more than 20% is expected this fiscal year, the firm said.
Fujifilm has already said the same approach will be used to cut the cost of goods at Fujifilm Kyowa Kirin, which has already unveiled adalimumab (FKB327) and bevacizumab (FKB238) as its first biosimilar targets, with other molecules to be added. Initial indications for the first two products are still undecided.
Fujifilm Pharma, which operates separately from Toyama, started independent sales in September of three older drugs acquired from Bayer in Japan earlier this year (scripintelligence.com, 28 June 2012), with a plan to launch its first "super generics" using value-added formulations within the next four years or so.