Mission and strategy
Mission to build well-being
Orion’s mission is to build well-being. Orion builds well-being by bringing to markets drugs and therapies from which patients get help for their illnesses. An effective drug or therapy also creates added value for patients by improving their quality of life.
Orion’s strategy implementation is supported by global healthcare megatrends that have material impact on the consumption and price level of drugs as well as on pharmaceutical research. These megatrends include:
- Ageing of population: as population ages, the prevalence of various diseases increases, causing increased demand for drugs and treatments.
- Increasing healthcare cost burden: the share of healthcare costs of available funds continues to increase, both at national and individual level, creating needs for cost-effective drugs and treatments.
- Advances in science: personalised medicine, increased genetic and epigenetic data and developments in drug dosing and diagnostics create possibilities and markets for new treatments and therapies.
- Increased personal responsibility for own health and pets' health: growing awareness and understanding of the factors affecting personal well-being increase the demand for health-promoting and illness-preventing products and pets' health products.
- Sustainability: sustainability and compliance in all business sectors increasingly guide the actions and decisions of consumers, authorities and investors.
Preconditions for strategic success
Orion has determined the following areas where it must succeed in order for the company to achieve strategic success:
- Quality and safety. High quality and safety of operations and products and regulatory compliance are preconditions for a company's existence in the pharmaceutical industry.
- Competitive and dynamic product portfolio. Orion invests in product development and commercialisation and product life cycle management. Success requires that we constantly develop new products and discontinue unsuccessful ones.
- Strong corporate culture of working together. Our working together is based on work that is valuable and important for the customer. Orion wants to be an excellent workplace and a responsible and attractive employer that continuously develops the well-being of its personnel at work and their expertise.
- Building strong partnerships. Orion's operations are based on utilising global partnerships and networks. Finding the right partners and managing partnerships with skill give the company a competitive edge.
- Productivity and flexibility. Attaining competitiveness and the desired level of profitability requires constant productivity improvements in all business operations. Flexibility to respond rapidly to changes in the operating environment is also required. Due to its size, Orion can be more agile than large companies and gain a competitive advantage from this.
The following strategic targets and their achievement are monitored in the Company with clearly defined indicators:
Growing more rapidly than the growth in the market. The key objective in the coming years is to persistently strive for growing faster than the markets. The objective is to increase net sales to EUR 1.5 billion by the end of 2025. Growth enables the Company to develop and take manageable risks. The target of growing faster than the markets should be achieved by the Company as a whole and in the geographic and product areas in which Orion operates.
Orion’s solid balance sheet supports the Company’s chances to grow and achieve its financial goals. Orion is currently working on numerous projects that target growth. The Company continues to invest in its own research and development activities, for example by investing in new clinical trials, and actively evaluates in-licensing opportunities of products in the late stage of development. At the same time, the solid balance sheet strengthens Orion’s equity position and ability to continue achieving its dividend distribution objective.
The single most important growth project in the next few years is the commercialisation of the Nubeqa® prostate cancer drug in partnership with Bayer. Other than this, growth in the near future will be sought especially from the Easyhaler® product portfolio and possibly through product acquisitions.
Providing patients with new innovative and cost-effective drugs and treatments. Developing and strengthening the product development pipeline both in early research stages and clinical development phase projects. Besides Orion's own product development, we strive to strengthen our product development pipeline by in-licencing development projects.
Working together to benefit the customer. Our objective is to continuously develop our own understanding of customer needs and of the progress made in therapy areas. We recognise new opportunities by relying on our scientific competence and customer knowledge.
Continuous improvement of performance in sustainability. Patient safety is the most vital aspect of Orion's corporate responsibility, and managing the environmental responsibilities is an important part of the Company's sustainability. Orion is committed to making its own operations carbon neutral by 2030. In addition, Orion aims to continuously develop the well-being of its personnel, including occupational safety and well-being at work.
Strong development of profitability
Through financial objectives Orion aim to develop the Group’s shareholder value and ensure financial stability and profitable growth.
Orion’s financial objectives are:
- Growing net sales more rapidly than growth of the pharmaceuticals market. Achievement of this objective requires continuous investment in development of the product portfolio.
- Maintaining profitability at a good level. The aim is operating profit that exceeds 25% of net sales.
- Keeping the equity ratio at least 50%.
- Distributing an annual dividend that in the next few years will be at least EUR 1.30 per share, and increasing the dividend in the long term.
In the short term what actually happens may deviate from the objectives.