Mission and strategy
Mission to build well-being
Orion’s mission is to build well-being. To this end, Orion provides pharmaceuticals that help patients to effectively treat their diseases. Effective drugs also provide added value for patients by improving 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
- advances in science: personalised medicine, increased genetic and epigenetic data and developments in drug dosing and diagnostics
- the increasing cost burden of healthcare, need for cost-effective treatments and drugs
- increased personal responsibility for own health
- digitalisation and value-adding solutions in medication
The crucial focus areas for implementing the strategy are:
- Quality and safety. High quality, product safety and complying with requirements of authorities are indispensable in the pharmaceutical industry.
- Competitive product portfolio requires continuous renewal of the portfolio. Orion invests in product development, manufacturing, acquisition and effective launching of products and management of their life cycle.
- Strong corporate culture of working together, the basis of which is valuable and important work 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.
- Partnerships. Orion’s operations are based on utilising worldwide networks. Well-managed partnerships and collaborations are a competitive advantage for the Company.
- Productivity and flexibility. Price pressure on drugs requires cost awareness and seamless co-operation between different parts of the Company to achieve the targeted profitability level. Flexibility to react rapidly to changes in the operating environment is also needed. 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 faster than the markets. 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 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.
The single most important growth project in the next few years is the development of the prostate cancer drug darolutamide and launching the product in cooperation with Bayer. Other than this, growth in the near future will be sought especially from the Easyhaler product family for the treatment of asthma and COPD. Growth will also be supported through various digital projects and tools that ease the daily medical care.
The sale of the Orion Diagnostica division in 2018 and the resulting capital gain will allow Orion to futher focus on growth and achieving 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 capital gain strengthens Orion’s equity position and ability to continue achieving its dividend distribution objective.
- Providing new innovative and cost-effective drugs and treatments for patients. The product development pipeline has balanced numbers of proprietary products and generic projects in different phases. In its research the Company aims for the best input/output ratio in the field.
- Working together to benefit the customer. Orion’s personnel are committed and understand the needs of customers. The working atmosphere, customer satisfaction and Company image are outstanding.
- 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. In addition, Orion aims to continuously develop the personnel’s occupational safety and ability to cope with their 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.
R&D projects that have made promising progress will probably somewhat increase the Company’s research expenses in the next few years. However, agreements already made relating to research projects and their good progress, and possible new agreements with partners relating to other projects are expected to generate material milestone payments in coming years. Successful projects will have a positive effect on Orion’s net sales and especially operating profit even before possible approval of new proprietary drugs and before the actual commencement of product sales.