report - daiichi sankyo brasil · the report covers all operations of daiichi sankyo brazil and was...

200 9

Sustaintability

Report

Building a sustainable organization

Dear reader ,

The production of our Sustainability Report for the second consecutive year gives me great satisfaction. Through it, we can present in a transparent way our social and environmental activities, results and targets, as well as the highlights of Daiichi Sankyo Brazil’s management.

The report’s preparation allows us to improve our management, guiding our actions in the three aspects of sustainability: environmental, economic and social development.

We take care of our company like a large garden. And for that garden to become even more beautiful, we must plant new flowers and cultivate those that are already part of it. So, in 2009, while maintaining the reliability of our work, we initiated partnerships to disseminate new drugs, thereby expanding the alternatives for the medical treatment of cardiovascular diseases.

The essence of our business is to provide better quality of life to society, always offering first-class products. Because of that, an important goal for the year 2010 is to launch new medicines, primarily in cardiology.

An important achievement in 2009 was the leadership of the Olmesartan molecule in prescriptions of cardiologists. Developed by Daiichi Sankyo, Olmesartan is the active principle of our flagship product, Benicar.

The period was also marked by the conclusion of some stages of the factory expansion project, which resulted in the production process optimization and an improvement in the employees' quality of life. We aim to finish the expansion this year, thereby significantly increasing production capacity.

Throughout 2010 we will

continue to act so that we achieve results that integrate human needs, nature conservation and generation of wealth. Thus, our organization aims to find sustainable solutions beneficial to all stakeholders with whom we interact.

President's Message (1.1)

Daiichi Sankyo Brazil publishes its second Sustainability Report regarding the year of 2009, and intends to publish the report annually.

The report covers all operations of Daiichi Sankyo Brazil and was defined based on the positive and negative impacts of the organization’s activities and on the needs of its stakeholders. Twenty-seven stakeholders were consulted – 14 employees, 7 suppliers, 5 doctors and Daiichi Sankyo Brazil’s partner, GlaxoSmithKline. Those consulted expressed their expectations related to the themes that will be discussed in the document.

The themes of most interest were, in order of preference:

1. Organization strategy (55.2%)

2. Daiichi Sankyo (48.3%)

3. Pharmaceutical Industry and changes in 2009 (44.8%)

4. Market presence (44.8%)

5. Employees’ education and training (41.4%)

6. Organization’s structure (37.9%)

7. Health and safety of the customer (34.5%)

If you have any doubts, suggestions or information, contact the communication department at: [email protected]

About the report (3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 3.12, 4.14, 4.15)

Mission, Vision and Values

"To contribute to the Enrichment of Quality of Life around the world through the creation of Innovative Pharmaceuticals and through the provision of Pharmaceuticals Addressing Diverse Medical Needs."

The managerial task is to optimize the three values:

"To become a Global Pharma Innovator by 2015. ‘Global’ refers to the international scope of corporate activities. ‘Pharma Innovator’ means a company that continuously develops innovative drugs.”

Innovation “Our Imperative”

1.To create first-in-class and best-in-class drugs

2.To take a global perspective, and respect local values

3.To foster intellectual curiosity and strategic insight

Human Values

Attractive working environment

To motivate employees, enabling them to seek new challenges and innovation

To encourage employees to contribute to the community (society)

Support for career development

Integrity “Our Strength” 4. To provide the highest quality medical information

5. To provide a stable supply of top-quality pharmaceutical products

6. To be an ethical, trusted, and respectful partner

Social Values

Sustainable environmental management

Compliance with laws and standards of conduct

Pharmacovigilance

Contribution to society

Accountability “Our Culture” 7. To be accountable for achieving our goals

8. To demonstrate professionalism, respect for others and teamwork

Economic Values

Operating profit

Market value

Value of shares

Sales

Mission (4.8)

Vision

Our Management Values

Our Three Corporate Values and Eight Commitments

Index

Daiichi SankyoDaiichi Sankyo

Daiichi Sankyo’s social and environmental performance Daiichi Sankyo Brazil

Benicar leadership and hypertensionPharmaceutical portfolio increase

The factory’s expansionThe change in managementThe economic performance

Goals 2010

The Brazilian pharmaceutical industry Traceability and pharmaceutical traceability

Advertising Goals 2010

Responsibility for the productProducts

Hypertension and adherence to treatmentEfforts to raise awareness of patients and the general population

Clinical inertia and awareness of the medical profession Research and development

Quality, health and safety of the product Customer service

Goals 2010

08091010101111111213

14151617

181919192021222325

EmployeesWages and BenefitsTrade union relations and collective agreement Profit and Results Sharing Program Evaluation and feedback to employee Education and training Workplace safetyMedical control and occupational health programStaff associationChild and forced labor 2.0 Selection process – This job is mine! Employment program for first job (Monte Azul association) GiiMiiPediaProgram for Innovation Quality - PIQ Knowledge ActivistsGoals 2010

Environment and social programs Environment Social action Goals 2010

Global Reporting Initiative (GRI) Index Glossary

26282828292930303030303131313233

34353839

4042

Daiichi Sankyo8 Daiichi Sankyo Brazil

Daiichi Sankyo (FS3.4, FS3.5, FS3.6, FS3.7)

General information

• 3rd biggest pharmaceutical company in Japan and 22nd in the world• Net sales* – Y 952.1 billion • Operating income* – Y 95.5 billion • R&D investment* - Y 196.8 billion • Employees – 28,895 • Global reach – 56 countries

Daiichi Sankyo is a pharmaceutical company headquartered in Japan which has developed over a century, concerning itself with offering safe pharmaceuticals and providing people with quality of life.

The organization is striving to become, by 2015, a global and innovative pharmaceutical industry, basing its actions on three pillars:

• Extending its global reach;• Innovations in science, technology and

business model • Fulfilling unmet medical needs.

Unmet medical needs drive scientific innovation in pharmaceutical industries, which consists of research of new molecules to develop new pharmaceuticals. These innovations will result in an increase in portfolio and expansion in global market. Thus, Daiichi Sankyo’s three pillars of action unify the activities to achieve its goals.

Global expansion has achieved 60% of sales revenue outside Japan, as a result of the company’s activities in developed and developing countries and emerging markets.

Daiichi Sankyo also aims to expand market share in Japan, to reinforce its US marketing base, to increase productivity in Europe, and to extend its involvement in China, Hong Kong, Taiwan, South Korea, Thailand, Brazil and Venezuela.

In addition, the company acquired in 2008 the Indian generic medicines company, Ranbaxy Laboratories Ltd, which extended Daiichi Sankyo’s presence to other regions of the world such as India, Eastern Europe, Western Asia and Africa.

Ranbaxy Laboratories, founded in 1961, has more than 12,000 employees and marketing bases

in 49 countries. While the company strategy is prominent in the field of generics drugs, it also has been conducting research on diseases prevalent predominantly in developing countries. Currently, the laboratory has an anti-malaria drug in the third phase of clinical trials (to learn more about the phases of clinical trials, see page 21).

With this addition, Daiichi Sankyo entered the market for generic drugs that generate constant revenue in the long term and continues to work on developing proprietary drugs, making its business a hybrid and innovative business model.

To meet other medical areas, the organization also conducts innovations in science and technology. Currently, 23 drugs to treat cardiovascular disorders, cancer, diabetes, infectious diseases, bone diseases and autoimmune diseases, are undergoing clinical trials (see products). In Europe and the United States, Daiichi Sankyo launched the anti-platelet agent Effient (Prasugrel), providing a new treatment for patients with acute coronary syndrome (ACS).

Present research by the organization focuses on seven major areas. Four of these (thrombotic diseases, malignant neoplasm, diabetes mellitus, and autoimmune diseases/rheumatoid arthritis) are new for Daiichi Sankyo, while in three (hypertension, hyperlipidemia/atherosclerosis, and bacterial infections) the company already boasts a strong performance. Among these areas, the high priority projects are:

• Thrombotic Diseases (Effient (Prasugrel)

and Edoxaban); • Hypertension (CS-8635) and • Skeletal System (Denosumab).

Explore Daiichi Sankyo’s history of innovations in Daiichi Sankyo Sustainability Report 2008, accessing www.daiichisankyo.com.br.

* Combined results from April 2009 to March 2010 - Japanese fiscal year

Sustaintability Report 2009 9

Daiichi Sankyo’s social and environmental performance

Present on several continents, the units of the organization are engaged in carrying out social activities that meet the needs of the country, while respecting their cultures and customs.

In addition, the organization maintains strict compliance with environmental laws and regulations, seeking alternatives to minimize negative impacts to the environment.

The following environmental policies were implemented in 2009:

Prevention of global warming: by reducing CO2 emissions in Japan and worldwide.

Implementation of social and environmental programs: by directing the disposal of household and industrial waste, always focusing on the preservation of the environment. Also, the organization practices a strict control over the production of waste products and promotes the three Rs (Reduce, Reuse and Recycle), for environmental and financial benefits.

Daiichi Sankyo Brazil (1.2, 2.1, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8, 2.9, 2.10)

General information

Net Sales – R$114 million Employees – 317 Regional reach – 15 countries

Awards received

MAKE Award CIEE award for 50 best companies to offer

traineeshipsBest Symposium of the Brazilian Society of

CardiologyThe most innovative companies in Brazil

(Época Negócios magazine, together with FGV-Eaesp and FNQ – the National Quality Foundation)

Sindusfarma Award for Excellence in Management of Health and Safety in the Workplace

The company is a result of an innovative and successful history which begun in 1962 and is characterized by a continuous growth in production capacity and number of employees.

Daiichi Sankyo Brazil Pharmaceutical Ltd, a subsidiary of Daiichi Sankyo, is located in São Paulo with a factory in Barueri and sales representatives around Brazil. Although it does not have sales representatives in the North of the country, its pharmaceuticals are available there. The company exports to Argentina, Mexico, Panamá, Peru, Colombia, Venezuela, Ecuador, Chile, Costa Rica, El Salvador, Honduras, Nicaragua, Guatemala and Dominican Republic.

With a focus on pharmaceuticals for hypertension treatment, the business growth was driven by the launch of Benicar®, Benicar® HCT and Benicar® Anlo, in 2004, 2005 and 2008 respectively, and also by the growth in exports.

Benicar leadership and hypertension

The molecule that constitutes Benicar consolidated its credibility among cardiologists in 2009, when it achieved prescription leadership in the BRAS (angiotensin receptor blockers)*

category. The success of Benicar is the result of the sales

representatives work with the doctors in the awareness of hypertension and the necessity of continuous treatment.” Despite the company’s progress in raising awareness of hypertension treatment, there are still many patients who do not adhere to treatment or do not control their blood pressure. This fact underlines the need to continue education programs in conjunction with doctors, and also incentivizes the company’s search for new medicines relating to cardiology.

10 Daiichi Sankyo Brazil

* See Glossary

Pharmaceutical portfolio increase

Daiichi Sankyo Brazil, following its main office’s strategy, aims to amplify its pharmaceutical portfolio for hypertension treatments and other medical specialties.

For hypertension treatment, into the second half of 2010 the company is in the arrangement to launch Effient (Prasugrel), an antiplatelet agent.

The medium and long-term planning to enlarge the portfolio includes other therapeutical areas such as oncology and autoimmune diseases.

Another objective is to expand in Brazil the pharmaceuticals, exempt from medical prescription, portfolio – either through the company’s head office or on licence from other pharmaceutical manufacturers.

A further strategy is to conclude comarketing* agreements. In these agreements, the efficacy of a compound is disclosed, thereby offering more options to the specialty area of the organization, reaching more patients. One such agreement was made with GlaxoSmithKline for the promotion of an oral antidiabetic agent, and it will be intensified in 2010.

The main office entered the area of generic pharmaceuticals with the acquisition of Ranbaxy, which has a branch in Brazil. Both companies, Ranbaxy and Daiichi Sankyo Brazil, still remain independent in the local market.

aiichi Sankyo believes that making more medicines available to people is one of the most important and significant aspects of its social performance, which contributes to the possibility of saving lives.

The factory’s expansion (FS3.1)

The expansion project of the plant is necessary to meet the growing demand of the Brazilian and Latin American pharmaceutical market. Moreover, the expansion also aims to transform it into a flexible plant that can help the new administration to broaden the diversity of products. This undertaking, begun in 2008, has required significant human and material resources.

In 2009, the project has achieved the goals of the year with the completion of the cafeteria, the new quality control lab, and two of the first steps of the production area.

The new cafeteria is an innovative project. The building, known as Patio, gives employees a pleasant area, which represents a remarkable improvement in their quality of life. The Patio is also aligned to sustainability by reducing energy consumption and promoting water reuse.

The conclusion of the laboratory and the two stages of production area resulted in significant improvements: the flow of people and materials, better employee ergonomics, and better layout of the facilities, optimizing both the production process and the work of the Quality department. There was no increase in production as yet, but with the end of the expansion, in 2010, the productive capacity of tablets is expected to multiply to 350 million tablets a year in two shifts.

The change in management (4.1, 4.2, 4.3, 4.4, 4.5, 4.9, 4.10, FS3.3, HR4)

In early 2009, Daiichi Sankyo Brazil underwent a major change in management with the entry of Eloi Bosio as president.

The management is guided by head office directives, and is obliged to submit each year the plan and budget for the period, and each month to report the company’s results.

Three formal committees provide local management and the president participates in each. They are:

Executive committee

Currently the highest level of management, the executive committee carries out the analysis and measurement of results and defines goals and strategic plans, by group decision.

Group members meet monthly and adopt targets aligned with the general strategies of the organization, which include the stakeholders. The results influence the variable remuneration under the Profit and Results Sharing Program.

DOAR group (Objectives and Results Liaison)

This group, created in 2009, made up of leaders and opinion makers from many parts of the organization, meets with the president every three months for discussion and analysis of results.


* See Glossary

Communication with employees (4.4, HR4)

Transparent and open dialogue among all employees is encouraged through a number of tools, such as: suggestion box, proximity to the managers, Open Space, and dialogue with the president. No case of discrimination was reported in the period.

Each month, the president transmits a message to employees through the organization's blog, communicating about important facts and themes that occur in the period.

Staff meeting

This occurs every six months, with the aim of announcing the objectives and results of the period to all internal employees.

In 2010, the Adminstration Council will be formed, composed of the president of Daiichi Sankyo Brazil, the president of ASCA (Asia, South America and Central America) and one other from Japan. The aim of this committee is to align the strategies of subsidiary and main office.

The economic performance (EC1, EC4, FS2.4)

The Executive Committee prepares annually a budget for the coming three years. This budget information is sent to headquarters and presented by the president of the Brazilian subsidiary to Japan. After any necessary revision is made, it is then presented officially to the board of directors in Japan, during the month of May.

The main economic performance indicators are monitored and compared monthly to the budget and the best estimate of results, data that is formalized in monthly meetings of the Executive Committee.

In 2009, the organization’s economic performance exceeded estimates by the national market. However, the overall economic performance was negatively impacted by lower than expected exports to Daiichi Sankyo Venezuela. It is noteworthy that there was no financial assistance from the Brazilian Government.


R$ 133,4 Million

R$ 114,9 Million

R$ 23,4 Million (28% of liabilities)

R$ 84,9 Million

R$ 61,5 Million(72% of liabilities)

Gross Operating Revenue

Net Operating Revenue

Current Liabilities and Long Term Liabilities

Liabilities

Equity

R$ 22,3 Million

R$ 84,9 Million

Retained Earnings

Assets

Goals 2010

1. To expand the portfolio in cardiology treatment with Effient’s (Prasugrel) launch.2. To finish the planning to launch new drugs in 2010.3. To identify new opportunities for licences and strategic partnerships.4. To finish the plant expansion.5. To put into operation the new production processes resulting from the expansion of the factory.6. To start using the new machinery for the manufacture of medicines.7. To implement the Administration Council.8. To carry out constant economic and financial analysis, to identify tools and mechanisms that offer

competitive advantage to Daiichi Sankyo Brazil.9. To develop feasibility and return on investment studies that can support and ensure the sustained

growth of the organization.10. To establish a technology infrastructure adequate to Daiichi Sankyo Brazil and ensure it is

applied.


36.4 Million

114.9 Million

26.2 Million

0

83.7 Thousand

16.6 Million

Operating Costs

Revenues

Employee wages and benefits

Payment to providers of capital

Community investments

Payment to government

Direct economic value generated 114.9 Million

79.2 Million

35.7 MillionEconomic value retained

Economic value distributed

Direct economic value Daiichi Sankyo Brazil 2009 - Reais (R$)

The Brazilian pharmaceutical industry (4.13, SO5, FS1.2, FS2.7)


The pharmaceutical industry is a strong regulated sector in Brazil and in the world because it produces and sells products that directly affect human health. In our country, the health monitoring system (ANVISA – National Agency for Sanitary Vigillance) regulates and supervises the pharmaceutical industry at the federal, state and municipal levels. (For more information visit ANVISA www.anvisa.org.br)

A new regulatory system was established in 2009, with 16 new laws that have impacted the pharmaceutical industry. There were regulation simplifications, for example, product changes deemed to be of lesser impact can be registered only under History of Product Change, not requiring prior approval of ANVISA. There were also additions of procedures, such as new tests for the permeation of ointments, and the creation of new directions for use of medicines, with simplified information for patients and the obligation to provide printed directions in Braille upon request to the Customer Service Hotline.

The changes most critical in terms of implementation are:

Traceability and pharmaceutical traceability (Resolution 59, 2009 ANVISA)

A pilot project was successfully carried out with distributors, pharmacies and pharmaceutical companies to track products through the application of a two-dimensional barcode 2D (Unique Medicine Identifier) on product packaging, in order to control their production, importation, distribution, transport, storage and dispensing, avoiding in this way, forgery and theft of cargo.

However, ANVISA published Resolution 59, which established that the 2D code would be printed in security seals issued by Casa da Moeda (the Brazilian Government company that prints Brazilian currency).

Given the huge impact that this change will cause, the pharmaceutical industry, represented by entities such as Sindusfarma and Interfarma, still advocate to ANVISA the most efficient and adequate way to implement the traceability system.

When effectively implemented, the program will require pharmaceutical companies to track their product to the distributor, who will assume responsibility for the information from then.

In pharmacies, customers can obtain information on the drug by code readers of the security seal.


Advertising (Resolution 1996 of 2008 of ANVISA – published in 2009 and came into force in 2010)

In this resolution, ANVISA introduced new rules for the promotion and distribution of advertising for medicines, both under prescription and exempt from prescription. Among them, ANVISA:

• Established a new way of presenting promotional material;

• Prohibited the distribution of free gifts to doctors (only institutional gifts permitted);

• Defined rules for the conduct of organizations at medical congresses or scientific events;

• Demanded that the free sample has at least 50% of the amount contained in the medicine’s original commercial package; and

• Established that the CMED – Câmara de Regulação do Mercado de Medicamentos (Board that regulates the pharmaceutical market) will take over the regulation of advertisements for medicines, price reduction programs, and discount cards or coupons for the purchase of medicines.

Although these government measures have economic impacts, the organization believes that the industry will benefit from these changes, because they promote greater transparency and credibility within sector and regulatory agencies.


Besides the regulation and control by the government, there are associations and entities in the sector to promote dialogue between society, government and businesses on various issues related to the pharmaceutical market in Brazil. The organization is a member and actively participates in discussions and actions of the following industry associations:

• Sindusfarma - Sindicato da Indústria de Produtos Farmacêuticos no Estado de São Paulo (Pharmaceutical Industry Union of the State of São Paulo)

• Interfarma - Associação da Indústria Farmacêutica de Pesquisa (Association that promotes researches in the Pharmaceutical Industry)

It is worth remembering that Daiichi Sankyo Brazil does not act directly on public policy development and lobbying.

Performed. Participation in committees of regulatory affairs with, Sindusfarma and Interfarma. Participation in the Congress of the Brazilian Society of Pharmaceutical Medicine.

To monitor regulatory trends.

Use of electronic systems for information flow.

Studies to reduce regulatory impacts.

Performed. Enhancement of the IRIS - Integrated System of Regulatory Information.

Performed. Several feasibility studies for drug registration were made, as well as studies to implement the new regulations.

Goals 2009 Results

Goals 2010

1. To link IRIS to the electronic system that enables management of regulatory information for new records of pharmaceuticals.

2. To train staff on regulatory affairs expertise to support the new strategy’s implementation.


Responsibility for the product


Products (2.2)

A total of six drugs are produced by Daiichi Sankyo Brazil and two are promoted in partnership with GlaxoSmithKline.

Hypertension treatment: BENICAR, BENICAR HCT, BENICARANLOAnalgesic and Anti-inflammatory: LOXONINBruises, varicose veins and edema: HIRUDOIDIntestinal Regulator: LACTULONA

The main product is Benicar, of which the active molecule is Olmesartan. This molecule is also sold in a licence partnership between Daiichi Sankyo Brazil (brand name Benicar), and Pfizer (brand name Olmetec). In 2009, Olmesartan has become the most prescribed medication for hypertension of BRAS (blockers of the renin angiotensin system) among cardiologists. Furthermore, Benicar ® was the No. 2 product in maket share of prescription.

This year, we carried out an important partnership with the pharmaceutical company GlaxoSmithKline to promote two oral anti-diabetic medicines. This allows the two drugs not to be restricted to the area of endocrinology (a specialty of Glaxo), but also to be part of the prescription of cardiologists, benefiting a larger number of patients through the better medical knowledge of the product.

The main goal of Daiichi Sankyo Brazil for 2010 in respect of its products is expanding and diversifying its portfolio of pharmaceuticals available to society, promoting options for safe and effective treatments to restore health.

Hypertension and adherence to treatment

Hypertension is commonly known as high blood pressure, a disease that affects a large number of people worldwide, caused by heredity or by sedentary lifestyles, stress and obesity, among other factors.

Many hypertensive patients are unaware that they have the disease, or do not undergo proper treatment, running the risk of serious cardiovascular problems that can lead to death. Today we know that 40% of deaths from cerebrovascular accident (CVA) and 25% for coronary heart disease are caused by hypertension.

Although hypertension has no cure, high blood pressure can and should be controlled throughout life, through healthy habits and continuous use of medication. However, many people do not follow the proper treatment. Through research, Daiichi Sankyo Brazil identified that people do not carry out continuous control of hypertension for several reasons:

• Unknown risks and complications;• High cost of the drugs; • Dissatisfaction with medical care; • Medical inertia.

This is a question that prompts the work of sales representatives with physicians to find ways to raise patients’ awareness, as well as the implementation of programs that allow access to the medicine.

Efforts to raise awareness of patients and the general population (FS1.1)

Daiichi Sankyo Brazil aims to raise public and, mainly, patients’ awareness of the risks of hypertension. To achieve this goal, many programs were developed to disseminate information about the disease and the importance of its treatment.

Pharmaceutical Assistance Program: When patients get in touch with CHS employees, the patients are informed about the risks of hypertension and the need for continued treatment. They also raise awareness among people about the benefits of having healthy eating habits and physical activity, explain hereditary issues, and advise on the need for physician monitoring and the correct use of medication. This program reaches not only Benicare Life Program’s patients but also other patients.

Benicare Life Program: Benicare Life is a benefit for patients who adhere to continuous treatment. With the goal of ensuring access to medicine, the Benicare Life Program offers information to hypertension patients as well as significant discounts on the purchase of regular Benicar®.

By the year 2008, Benicare Life cards were given to doctors who recommended them to patients. In 2010, the CFM - Conselho Brasileiro de Medicina (Brazilian Council of Medicine) - banned the participation of physicians in the distribution of membership cards and discount programs. So, Daiichi Sankyo Brazil, respecting


* See Glossary

CFM’s decision, chose not to give doctors the card. Now, if the doctor understands that the patient can be benefited by Benicar Life Program, the patient can contact Customer Service Hotline.

Clinical inertia and awareness of the medical profession (PR2, PR6, PR7, FS2.3, FS5.4)

It is the doctor who really directs the patient to appropriate treatment that will result in better living conditions. In many cases, however, the physician remains passive when confronted with a patient who neglects treatments because of the reasons already mentioned.

With the aim of supporting physicians in the awareness of their patients about the need for treatment for hypertension, Daiichi Sankyo Brazil promotes continuing medical education through various activities.

Letter from Itaparica: This was one of the actions initiated by the organization in 2008 that alerted 200 doctors to the difficulties of adherence to treatment and the consequences for health. This document brought excellent results in the engagement of health professionals willing to reverse the complications caused by lack of control of hypertension. Through regional meetings, in 2009 the organization has reached 1,600 physicians in 16 meetings. These meetings stimulated reflexion about the difficulty of adherence to treatment and on ways to improve the scenario.

DIRETHA – Intra-regional Discussions on the Treatment of Arterial Hypertension: this program conducts regional meetings, involving 8-10 doctors, with a speaker to discuss scientific issues and clinical cases. Some 3,000 doctors have taken part throughout Brazil.

Congress: Participation in the 64th Brazilian Congress of Cardiology held in Salvador on March 13, 2009, for publicity and awareness of physicians about the risks of hypertension. Daiichi Sankyo promoted a Satellite Symposium. The aim of the symposium was to deepen the scientific knowledge of the physician on hypertension and on the lesions that the disease causes to the blood vessels, with serious consequences to the kidneys and heart. Titled "Is arterial hypertension the biggest enemy of the kidney and the heart?”, the symposium was elected voluntarily by doctors as the Best Satellite Symposium of the Congress, resulting in an award presented by the Brazilian Society of Cardiology.

Besides these events, 119 sales representatives regularly visit 9,500 doctors throughout the country, cultivating valuable relationships guided by ethics and exchange of knowledge.

The main specialties of the physicians visited by sales representatives are cardiology and general medicine, areas related to hypertension and type 2 diabetes. During these visits, representatives establish an open dialogue with physicians in order to find ways of acting together to educate patients about the importance of correct treatment of hypertension, with the aim of preventing serious cardiovascular diseases. Communication and the actions of Daiichi Sankyo Brazil with the medical profession follow the rules of ANVISA regarding the commitment to always act within the ethical principles that govern the pharmaceutical industry, ensuring the quality and reliability of information provided to physicians. It pleased the organization that, as a result of this practice, it had not received any complaint in the last five years, relating to its marketing of pharmaceuticals.

The sales representatives are educated about the pharmaceuticals and other technical information, enabling a positive dialogue with the medical profession. For this purpose, the following training is provided:

Cardiovascular manual: delivered to all new sales representatives, the manual discusses the cardiovascular system, the mechanism of the product’s action, competitors, clinical studies and other subjects.

National sales meeting: held at the beginning of 2009, it aimed to share experiences in the health area, promote understanding of hypertension, and other topics.

E-learnings: various technical training held throughout the year.

Rapid learning: focuses on recent issues that need to be informed to the representatives quickly. This is accomplished through narrated electronic presentation.

Retina Project: based on Carl Jung’s Insights theory (Psychological Types), allows the representative to know him/herself and identify types of personalities in other people, to better relate to and interact with the doctor.

Evaluations and feedback: sales representatives receive feedback regarding their personal skills and techniques to know what points he/she needs to improve.


Research and development (PR1)

Today, the focus of Daiichi Sankyo's research is hypertension, thrombotic diseases, oncology and infectious diseases, without forgetting the commitment to innovation that enables it to offer more medicines in other medical areas, as well as to further develop its expertise in medicines for hypertension, atherosclerosis and bacterial infection.

The increased investments in research and development aim to make available, with the aid of the medical profession, innovative medicines which may contribute to quality of life. In 2009, Daiichi Sankyo had 23 drugs at the clinical research stage, constituting a breakthrough in the development of new products and in the attention to unmet medical needs.

The research on thrombosis allowed Daiichi Sankyo to launch an antiplatelet agent, Effient (prasugrel), in the United States and Europe in 2009. It is scheduled to be released in Latin America in the second half of 2010.

With the development of these drugs, Daiichi Sankyo expects to achieve leadership in the field of anti-thrombotic agents.

In oncology, the organization has made acquisitions and partnerships that strengthen the research into medicines focused specifically on carcinogenic molecules.

Research phases for drug development

The first step of research is the selection of new molecules that act effectively in the treatment of certain diseases due to their physical and chemical properties.

Then, the company evaluates the pharmacodynamics of the compound, and a methodology for large-scale production is established as well as formulations and specifications of applications of the new drug.

Before a new medicine destined for commercial sale can be put into production, Daiichi Sankyo invests huge resources and time to complete the following procedures:

Careful selection: allows only 1,000 of 10,000 molecules to reach the pre-clinical phase, where the molecule is checked for effectiveness, safety and tolerability. Also the analysis of absorption, distribution, metabolism and excretion of the active ingredients are made. This pre-clinical study is carried out first in vitro and then in animals.

Clinical research: from the 1,000 molecules tested on animals, only 10 are approved for the clinical research phase, a phase in which the drug can be tested in humans. Approximately 10,000 patients are monitored and examined. This phase of research in humans is divided into four phases:

Phase I

The drug is administered to healthy human beings to observe the reaction of the body and side effects, and to determine the best method of administering it.

Phase II

The company evaluates the effectiveness of the drug in certain diseases to guage its toxicity and safety. Only if the results are satisfactory is the drug accepted for the next stage.

Phase III

A comparison of the drug with existing treatments is made. Usually, patients are divided in two groups: the control group (receiving standard treatment) and the investigational group (receiving the new drug).


Phase IV

Long-term pharmacovigilance is carried out to verify the drug’s efficacy and safety in a large proportion of the sick population. At this stage, the drug has been approved for commercial production.

The research procedures comply with local legislation and are in accordance with international codes such as the International Conference on Harmonisation, Good Clinical Practice, and Good Laboratory Practices.

The Consumer Service Hotline allows the strengthening of direct contact with patients and the tracking of their products in the marketplace (pharmacovigilance), enabling the detection of accidental adverse occurrences and medicinal interactions not previously observed. Reports of adverse events are sent to the head office in Japan and to ANVISA, which allows the company to change and update the directions of use, or even to initiate new studies to test the product's safety.

Quality, health and safety of the product (PR1, FS2.11)

As a result of constant efforts to maintain the safety and reliability of its products, the organization was awarded the Certificate of Good Manufacturing Practices issued by ANVISA, in addition to other certifications from Latin American health authorities.

The company passed quality and good practice auditing this year by Daiichi Sankyo’s main office, ANVISA, the health surveillance of Venezuela, Pfizer, and Schering Plough.

The following processes, carefully performed by staff in each area, guarantee the safety and quality of the medicines:

1. Analysis of raw materials, finished products and packaging materials.

2. Research and development of products, raw materials and packaging materials.

3. Validation of analytical methods, processes and computerized systems.

4. Equipment qualification.

5. Release of finished products to the market.

6. Assessment of quality deviations.

7. Assessment of change control.

8. Annual review of products.

9. Risk analysis.

10. Study of stability (determines the expiry date).

11. Action in conjunction with the Customer Service Hotline and other related areas to detect and solve any problems.

12. Internal audits, qualification and certification of suppliers, taking into account (among others): infrastructure, inventory control, storage conditions, production control and irregularities, quality control.

13. Training. During 2009 there was no registration of

changes, or complaints, relating to information of the medicines to be contained in the packaging. For next year, according to the ANVISA RDC 47/09 resolution, the printed directions of use of medicines will be changed, eliminating technical and scientific language.

First Encounter with Quality and Shared Audit Group

The First Meeting of Quality took place over two days at the Museu da Bíblia (a museum in Barueri-SP), with the participation of all employees of the factory and some invited from the office. Aiming to raise awareness about the importance of drug quality, the meeting exceeded the expectations of the organization by becoming also a motivational factor for employees. The quality evolution in Daiichi Sankyo Brazil and the impact of quality on users of the drugs were some of the topics addressed.

The Shared Audit Group is formed from four pharmaceutical companies (Daiichi Sankyo Brazil, Chiesi, Crystal, Johnson & Johnson) and its goal is to optimize the qualification process for suppliers. For that purpose, the participating companies share audits performed on suppliers with each other.


Customer service (PR2, PR8, FS2.1, FS2.2, FS5.2)

The Customer Service Hotline maintains a direct relationship with the consumers of the medicines. Those answering the phones all have a background in health. They receive initial training and continue to refresh their knowledge, always being informed and updated about new drugs or about changes to internal procedures. Meetings are held monthly to discuss newly published articles relating to medicine, technical information, and changes planned or underway in the pharmaceutical industry.

The CSH allows patients to make complaints, offer suggestions or inform the organization about drug side effects. This latter activity is called pharmacovigilance and it is essential for the responsible areas to take appropriate action and give feedback to the patient through the CSH. The department also enables the organization to better understand consumers and their health issues.

Regarding service to patients, no complaints were reported in relation to violation of privacy and loss of customer data.


55.346Total Events

Total Calls 88.671

83.204(93.83%)

5.467(6,17%)

Benicare Life Program

Daiichi Sankyo’s products


6,305 Benicare Life Program (program rules, lack of medicine in the participating drugstores, services management).

Complaints

Suggestions

Compliments

107 quality deviations (after exchanging the pharmaceutical for the patient, all products are sent to Quality Assurance, where they are analyzed, investigated, the appropriateness of the complaints verified, and then corrective measures are taken)

58 consultations, distributors and commercial presentation

Type os Service Quantity Subject in order of predominance

Pharmacovigilance

12

164

542

12 Benicare Life Program’s improvements

Effectiveness of the product, service and Benicare Life Program

204 Benicar149 Benicar HCT172 BenicarAnlo 7 Loxonin 4 Monotrean 2 Clozal 1 Lactulona 3 Hirudoid

6.470

Performed. National Sales Meeting 2009 in the auditorium of the Center of Cardiology Dante Pazzanese (São Paulo-Brazil). We visited the Heart Institute (Incor); the League of Hypertension, the Kidney and Hypertension Hospital, Dante Pazzanese’s Hospital and the Coronary Unit of Hospital das Clinicas.

Not achieved. The partnership project with the universities did not occur in 2009. Validation tests were made because of the PIPA project.

To attend Health Institutions meetings in which representatives and physicians discuss scientific issues

To increase expertise (partnership with universities, validation tests, among others).

Equipment calibration (increased awareness and control)

To increase productivity

Multidisciplinary training in quality

Commercial activity in the North region

To achieve a conscious dialogue with

To make Benicar® the leading product in market share of its class of anti-hypertension

Performed. The activity was the responsibility of Engineering. Many improvements were made, among them: improving the management of calibration, the creation of a multidisciplinary group to evaluate the criticality of the instruments, and improvements in operational procedures.

Not achieved. The productive capacity will be expanded in the end of the expansion project in late 2010. With this project, there will be improvements in ergonomics, ease and speed of cleaning, and a more automated process, which will also contribute to increased productivity.

Performed. The Quality Meeting was held with the objective of disseminating knowledge among the various areas

Not achieved. There are no representatives in the North region of Brazil, but the medicines are available in the North region local pharmacies.

Achieved.

Not achieved. But the molecule of the drug is the first in market share in its class.

Goals 2009 Results

Goals 2010

1. To perform the first audit of the Shared Audit Group. 2. To implement the Second Meeting with Quality. 3. To simplify the printed directions of use of medicines to suit the patient. 4. To raise physicians’ awareness of the importance of adherence to prescribed treatment. 5. To participate in the initiative "I am 12/8" of the Brazilian Society of Cardiology. 6. To launch new medicines (both exempt from and requiring prescription). 7. To form new partnerships to promote products. 8. To increase employees’ awareness of pharmacovigilance, through training and internal

communications. 9. To create training for sales representatives via mobile phone. 10. To maintain the awareness dialogue to change the scenario of 300,000 deaths from cardiovascular

disease in Brazil. 11. To stimulate interaction and discussion between experts of clinical cases, with the aim of

producing a book at the end of the year. 12. To participate in major cardiology congresses of Brazil: Brazilian Congress of Cardiology,

Congress of the State of São Paulo and the Brazilian Congress of Hypertension. 13. To create conditions for access to treatment of hypertension, seeking to improve adherence to the

treatment.


Employees26 Daiichi Sankyo Brazil

President

Directors

Department Manager s

Medium Managers

Junior Manager s

Coordinators

Sales Force

Administrative Positions

21

6

1

2

90

119

4

14

Technical Positions

Operational Positions

4

39

Trainees17

Employees by level

Employees - Gender Trainees - Gender

Women - Age Women - Education

Men - Education

This period was marked by an adaptation phase due to restructure of the organization, as much by existing employees as by the new ones. For 2010, the vision of expansion of the portfolio will drive the organization to train and develop its employees to meet these new challenges.

Of the total 317 employees, 115 work in the factory located in Barueri-SP, 66 in the administration office and 119 are sales representatives. 9 trainees work in the office and 8 in the factory. The organization had, in December 2009, 35 outsourced workers in the areas of cleaning, catering, and reception.


female

male

165

152

female

male

9

8

Elementary School - Not Complete

Elementary School - Complete

High School - Not Complete

High School - Complete

University - Not Complete

University - Complete

4

1

18

110

2

30

Elementary School - Not Complete

Elementary School - Complete

High School - Not Complete

High School - Complete

University - Not Complete

University - Complete

1

1

1

24

27

987

67

43

1

34

16-19

20-29

30-39

40-49

50 and Over

Men - Age

16-19

20-29

30-39

40-49

3

76

63

18

50 and Over5

In 2009, Daiichi Sankyo Brazil, through the commitment of its employees, has achieved the following accomplishments:

• CIEE award for 50 best companies to offer

traineeships • Sindusfarma Award for Excellence in

Health Management and Workplace Safety• MAKE Award

Wages and Benefits (EC5, LA3, LA14)

The minimum wage level is the Apprentice, equivalent to the minimum wage of the category and 67% above the Brazilian minimum wage (at December 2009).

The wage policy does not differentiate between gender, color or race, as everyone has an equal opportunity to meet the requirements of the organization.

* Those taken on permanently were contemplated in admissions

Trade union relations and collective agreement (LA4, LA9)

The dialogue of employees with their unions is supported by the organization, always respecting and observing the agreements made.

All employees are covered by the collective agreement between the relevant unions and the employer, which includes:

• Salary adjustment;• Security of salary; • Overtime regulation; • Health and safety training; • Personal protection equipment.

Profit and Results Sharing Program

The profit and results sharing program (PLR) motivates employees to achieve targets set, as much for their individual performance as for the entire organization. Approximately 50% of the bonuses come from the achievement of individual goals and about 50% from the organization’s goals.

All employees in the administrative area and the factory were covered by the PLR, the value of which ranged from 1 to 3 (monthly) salaries, according to position held. This range excludes the management team.

The sales team is not part of the criteria for evaluating individual and organizational performance, because they receive monthly sales awards and profit sharing according to their union agreement.


55

9

Promotions

Horizontal Transferences

FactoryOfficeSales

Trainees

Total

FactoryOfficeSales

Trainees

Total

29231930

101

28191035 (*12 taken on)

92

Admissions - 2009 Layoffs - 2009

• Dental plan• Health plan • Meal – R$19.50 per day for sales representatives & office employees• Supermarket – R$70.00 per month• Life Insurance• E-pharma – allowance for drugs • EAP Assistance EAP – employee assistance program • Quality of Life Program (50% gym subsidy)

• Professional Development Program (70% subsidy) • Financial assistance for Exchange Program• Factory canteen – breakfast, lunch and snack • Breakfast – office • Chartered bus – factory • Assistance with fuel (for management positions and sales team)• Keep-fit session (factory) • Quick Massage once a week (factory and office)

Benefits for the employees:

Evaluation and feedback to employee (LA12)

Each area manager conducts twice-yearly evaluations of the performance of team members, presented in his or her presence, with the aim of promoting professional growth through awareness of their strengths and weaknesses. Thus, the employee is made aware of his or her potential and commits to achieve new goals.

When necessary, the Professional Development Program is applied, offering an educational grant to undergraduate, graduate, and language courses to improve skills needed by the employee.

Training Hours - By Occupation

Education and training (FS2.6, LA10)

For Daiichi Sankyo Brazil, continual training is essential in order to maintain the standard of work and the quality of the finished product.

A total of 4,000 hours were offered, as a benefit, in short-term training, keeping employees updated on various issues related to their duties.

The organization also invests in continuing education through the implementation of the Professional Development Program, which benefited 76 employees with 70% of the value of undergraduate, postgraduate and foreign languages courses, related to the activities that the employee performs (benefit limited to R$ 500 monthly per course).

Course's TypeLevels


Coordinators

Trainees

Medium Managers

Directors


Junior Manager s

Sales Force

Administrative Positions

Technical Positions

Operational Positions

211

16

2174

531

178

339

104

296

75

40

Directory


Sales Force

Administrative

Technical

Operational

Coordination13

2

1

51

5

2

1Technical Course

Undergraduation

Postgraduation or Specialization

Languages

MBA4

6

50

14

2

Workplace safety (LA6, LA7)

The internal safety committees strictly follow the Brazilian standards and legal guidelines and are formed by employees from different areas, properly trained and qualified to ensure accident prevention:

• Internal Commission for the Prevention of Accidents (CIPA), consisting of 12 employees

• Laboratory Safety Committee (5 members)

• Fire Brigade Committee (17 members) Daiichi Sankyo Brazil was awarded

the Sindusfarma Award for Excellence in Management of Health and Safety in the Workplace, which recognizes the organization that meets all safety requirements.

Even with all the efforts of the safety committees, there was an accident involving an employee, which resulted in a five-day absence from work.

The rates of injury and of attendance were zero*.

Medical control and occupational health program (PCMSO)

The Medical Control and Occupational Health Program was developed to provide regular medical and laboratory examinations as well as perform admission and dismissal examinations related to the tasks performed by employees.

Staff association

The staff association is a vehicle for the integration of employees in the areas of sport, culture and leisure. It is organized for its 106 members by a committee of nine people, who arrange internal events and encourage participation in external events. The association organized the June Festival and the “Fraternization Festival”, which aided the integration of the employees of the factory and the office. The June Festival was also attended by families of the employees. The association also organized a DVD library, and various activities such as happy hours, a draw for gifts among those having birthdays in the month, and the distribution of ice cream in the summer.

Child and forced labor (HR1)

Child labor and forced labor are not accepted under any circumstances: Daiichi Sankyo Brazil conducts external audits with suppliers to make sure that they do not adopt this practice. The employees of Daiichi Sankyo Brazil are over 18 years, except those contracted by the Government Program Apprentice.

2.0 Selection process – This job is mine!

Daiichi Sankyo Brazil, an innovative company in several areas, introduced a new selection process for the traineeship vacancy in the area of Knowledge Management and Innovation. The candidate should have a bold profile, with a good knowledge of technological tools, digital media and computing, without needing to have had any specific training. This innovative process has had excellent results, as the selected intern made several improvements in his area.

Although this is not a selection process that can be expanded – after all, not all jobs require this type of profile – it once again demonstrates the innovation of the organization.

This process involved the following steps:Disclosure: the traineeship offer was

reported at universities, and via Orkut, Twitter and Facebook, resulting in the enrollment of 80 candidates, from several courses and cities.

Discussion on Orkut: many topics were proposed for discussion, in order to select the most engaged candidates.


*Do not include sales staff.

Group dynamic: a different and unconventional dynamic was staged at Ibirapuera Park. The candidates were asked to take along an object with which they identified themselves. After each candidate talked a little about him or herself, and how he or she identified with the chosen object, there were debates on knowledge management and how they could bring innovation to the area. In this phase, as well as in discussions among the Orkut community, other innovative people from several areas of the organization also participated.

Interview: Finally, interviews were held with department heads, and the candidate selected was the one considered most able to bring about innovations in the organization.

Employment program for first job (Monte Azul association)

The aim of this program is to encourage young people from disadvantaged social classes to experience their first job.

Young people are recruited from the community with the assistance of the Monte Azul Community Association (which is located in a deprived neighborhood in São Paulo), so that they can experience the working environment.

The program was attended by a young woman who worked through the departments of Knowledge Management and Innovation, and Information Technology. Today the girl is no longer with Daiichi Sankyo, but she had the opportunity to learn about the area in which she wanted to pursue a career, Information Technology.

Among the company’s outsourced staff, there is an employee who also attended this program in previous years. Currently she is the factory receptionist.

GiiMiiPedia

GiiMiiPedia is a free encyclopedia built on the Wiki model (the same as Wikipedia) which aims to transfer know-how. This initiative encourages employees of the organization to contribute knowledge that can be useful in various contexts, optimizing the time of training employees. This year, the layout of GiiMiiPedia underwent some changes, with new categories added, such as

market news, videos, and topics of interest to all departments.

Daiichi Sankyo Brazil won the title of 5th Most Admired Company in Knowledge Management in Brazil and the Multinational Most Admired in Knowledge Management in Brazil, at the Brazil 2009 MAKE Awards, by virtue of the GiiMiiPedia success story.

The MAKE (Most Admired Knowledge Enterprise) Award is promoted worldwide by TKN – The Know Network – an organization based in London for many years. The Brazil MAKE Award aims to encourage the exchange of experiences, reward the best initiatives, and place Brazil on the world stage in the field of Excellence in Knowledge Management.

In late 2009, the GiiMiiPedia statistics were: 1,130 articles, 6,000 pages created and 6,772 page “hits”. On average, each employee accesses GiiMiiPedia two times a month.

Program for Innovation Quality - PIQ

The Program for Innovation and Quality (PIQ) stimulates actions generated by unpublished ideas – related to technological innovation, personal development, socio-environmental issues, or company structure – that result in more income or less costs for the company. Employees who have an idea approved by the program are recognized and rewarded.


Knowledge Activists

The group “Knowledge Activists” is dedicated to the dissemination of new knowledge, methods and processes in various areas of the organization and to assist employees in using new tools of innovation.

Created in 2009, the group consists of 20 employees (10 from the office and 10 from the factory) from different areas, who are keen to collaborate and know how to train other employees in the use of GiiMiiPedia.

The group participates in a social network to discuss new ideas and feasible actions to improve the utilization and performance of GiiMiiPedia and of the Program for Innovation and Quality.

Projects approved in 2009

Fuel card: introduction of a fuel card to help calculate how much Daiichi Sankyo Brazil contributes to the environment as a result of control of fuel consumption.

Contribution to tree preservation: replacement of paper signs identifying processes with whiteboards, to reduce the use of paper.

Projects Implemented in 2009

Removable support: insertion of a removable support to optimize the granules used when processed in the granulator, avoiding unnecessary losses and increasing process yield.

Light sensor: installation of occupancy sensors to turn on and turn off the light in the changing rooms, with the aim of reducing energy consumption.

Waste reduction: implementation of new samplers in the granulation department to reduce losses during the sampling process. Approved in 2008.

Saving 300,000 cups: optimizing the use of disposable cups, encouraging the use of plastic “squeeze” bottles. Approved in 2008.

One less molecule of CO2: moving scales increasing the yield of each batch and generating less waste, avoiding incineration. Approved in 2008.


Achieved. Realization of innovative selection process - Web 2.0To review the process of attracting new professionals

To retain 70% of trainees and to create a traineeship program

To develop leadership training programs

Not achieved. In 2009, 12 of 24 trainees were hired, achieving 50% success rate. For Daiichi Sankyo Brazil to hire trainees requires the necessary headcount approved by headquarters, or an employee to be laid off. The traineeship program was not conducted but is a goal for 2010.

Not implemented. In 2009, the presidency changed. All leaders were evaluated for analysis and knowledge of their profiles and skills to assess the suitability of these employees to the company’s new era. Some (specific, short term) investments were made, such as participation in conferences and AmanaKey.

Goals 2009 Results

Goals 2010

1. To create a library in partnership with SESI (an organization that promotes training to employees of industry).

2. To develop employees, as well as recruit and retain talent, focusing on the sustained growth of the organization.

3. To develop leaders and trainees through specific programs.4. To carry out a campaign with the sales representatives for increase the use of GiiMiiPedia.5. To register the organization's processes in GiiMiiPedia.


Environment and social programs (FS4.1)


Residues

RecyclableTo IncinerationTo LandfillsTo Waste to energy

Emissions

Effluents

Residues: Creation and Destination

Materials

Active MoleculeOther Pharmaceuticals CompoundsCartridgePVC (Polyvinyl chloride)AluminiumPET (Polyethylene terephthalate)

Energy

GLPDieselEthanolGasolineEletricity

Water

Consumpiton

Environment

Materials (EN1)

Social and environmental responsibility is considered essential to business management. Following Daiichi Sankyo’s programs, the Brazilian subsidiary started new environmental monitoring.


Production

PackageAluminiumSteel Barrel (cask)TubesPrinted Directions of use for medicinesBoxesCartridgesPlastic CupsFlasksPVCLabelsCorks (stopple)

Phamaceuticals

Active CompoundsOther Components

Quantity Unity of MeasurementMaterial

27.918500

2.825.06910.440.000

399.49011.953.770

853.898850.608

54890.160809.100

Kg---

----Kg--

93.317698

KgKg

Energy (EN3, EN6)

There was a 7% reduction in energy consumption (from 3,010,211 kWh in 2008 to 2,800,870 kWh in 2009), although the company did not implement any specific program for this decrease.

Water (EN8, EN21, EN28)

Daiichi Sankyo Brazil used 7,776 cubic meters of water from SABESP – Companhia de Saneamento Básico do Estado de São Paulo, the principal Sao Paulo water company, in 2009.

The industrial process residue water passes through aeration and decantation processes in an Effluent Treatment Station before being sent to SABESP’s collecting network, from there the effluent is sent to SABESP’s final water treatment.

In 2009, the organization was fined due to a notice of violation issued by SAMEB (the sanitary surveillance authority of the city of Barueri), that alleged noncompliance with the established

standard operating procedure for sampling, testing and release of purified water.

Water for production processes goes through a procedure established by the health surveillance authority, in which all washes must be registered, until the water becomes pure. The water used in the washes was purified water, but due to a procedural error the washes were not recorded prior to purification. The procedure adopted by the company guarantees the final quality of purified water and did not pose a risk to product quality. However, despite a challenge to the violation notice, SAMEB denied the appeal and applied the fine.


0

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

3.500.000

2007 2008 2009

2.153.191

3.010.211 2.800.870(kw/h)

Energy

GLP (Liquefied Petroleum Gas) - Not Renewable

Diesel - Not Renewable

Eletricity - Renewable

Ethanol - Renewable

Gasoline - Not Renewable

Total Consumption EnergyTotal Not RenewableTotal Renewable

876.60490.062786.542

10,3%89,7%

Use Material Consumption

Energy Consumption GJ

GJ*/unit

Obs.Energy Resource

Boller

GeneratorsOffice and FactorySales Force’s FleetManager’s Fleet

39,75

2.6592.800.87035.470.9442.669.856

1.827

9710.083776.45988.139

45,958/ ton

0,138/ l0,004/ kwh0,022/ l0,125/ l

**

***********

* Gigajoule

** Data obtained from Steams its generation and uses. 41 edition. The Babcok & Wilcox Company: United States, 2005.

*** Data obtained from Global Reporting Initiative Guidelines

89,7%

10,3% Not Renewable Energy

Renewable Energy

Emissions (EN16, EN19, EN20)

From direct activities of the company (production and electricity) the emissions were 195 tonnes of CO2 equivalent. For management and sales representatives land transport, and employees air transport, there were 57,835 tonnes of CO2 equivalent emitted, with 53,091 of biomass. The data were calculated using the tool of the Brazil GHG Protocol Program.

The company does not emit gases that destroy the ozone layer, neither NOx nor SOx.

Disposal and recycling (EN22)


Suppliers and the environment

Audits are conducted on raw materials and packaging materials suppliers to confirm their sustainable practices as regards waste disposal, production, storage, transportation and environmental policies. Some 25 audits were carried out, including 16 in raw materials suppliers, 6 in packaging material suppliers and 3 in service providers.

The selection of suppliers of raw materials not directly related to drug production follows economic, social and environmental criteria. When there is a choice of suppliers, the organization chooses one that has sustainable performance.

420,757 printed materials and giveaways were ordered from vendors who work with social projects or products that impact more positively or less negatively on the environment and society. In 2009, Daiichi Sankyo Brazil started a program to buy only from graphics businesses that are certified by FSC (Forest Stewardship Council). This seal ensures that the paper used comes from managed forests that are socially fair, environmentally sound and economically viable.

Investment (EN30)

Daiichi Sankyo Brazil invested R$30,000.00 in environmental actions:

• Incineration of hazardous materials.• Waste for energy (co-processing).• Removal of fluorescent lights that contain

heavy metal (fluorescent lamps are sent for decontamination and recycling of glass. The total sent was 520 units).

• Recycling of blisters.• All recyclable materials are sent to

partner companies, who process the recyclable materials, turning them into products, renewing the recycling chain. The proceeds of the sale of this material is passed on to the staff association

Recycling

Landfill

Incineration

Total

Waste to energy

Tonne DescriptionDestiny %

40%

29%

22%

9%

100%

29,33

21,10

15,80

6,20

72,43

The sale proceeds are passed on to the staff association.

The waste sent to landfill is class II, i.e. not inert, and can be disposed safely in accordance with the regulations of Brazilian Government Agencies.

Waste from pharmaceutical production can generate the greatest environmental impact, therefore receive special treatment: they are incinerated. For this process we have the authorization from the competent bodies and CETESB. This measure ensures the integrity of the environment and the organization’s image.

Waste to energy is a process that uses waste in cement kilns, thereby reducing the environmental impact.

At the end of 2009 Daiichi Sankyo Brazil had completed its activities with the Monte Azul Community Association. In 2010, the company will devote time and investments in new projects related to health, in order to integrate its expertise with its social actions.

Social action

Aware that social work can contribute to effective improvement of the company, Daiichi Sankyo Brazil had, until the end of 2009, a partnership with the Monte Azul Community Association.

Several projects of social integration and training were conducted, as well as the development of the association’s new site.

The Monte Azul Community Association has developed throughout its history a management model based on strong human values, becoming an example of work and professionalism in the nonprofit sector.

Their projects are possible due to the continuous efforts of its managers to strengthen its corporate image, supported by the credibility of completed works, which have as their mission to be socially just and environmentally responsible.

With the participation of government and private initiatives, Monte Azul Community Association conducts several projects in the following areas: Culture, Education, Ecology, Health, Income Generation, Public Policy and Social Development.

Daiichi Sankyo Brazil is part of that story. The creation of the new site and institutional material sponsored by the company allowed greater exposure of the association’s identity and work, not only in Brazil but also abroad. The response was so positive that in May 2010 the association’s communication manager will address the theme of the association’s professionalization at the Annual Meeting of Ex-Volunteers in Europe.

The association helps 1,200 children and youths and has over 220 employees and volunteers. The children who stay in the association full-time receive three meals a day.

For more information go to: www.monteazul.org.br


Goals 2010

1. To develop the design of a new effluent treatment plant.2. To develop a greenhouse gases emissions inventory. 3. To restructure social activities focusing on health.


In 2009 the goal was achieved.

Not performed. Will be done in 2010.

On the expansion project, the companies licensed by environmental and disposal bodies must submit documents and certification on the destination of waste

To survey environmental impacts generated: CO² , boiler CO and generators (diesel)

To reduce amount of material for incineration

To strength the partnership with the Monte Azul Community Association and the expansion of first job project

To reduce the amount of cardboard in packaging

To prepare a social and environmental education program for employees

To develop a code of conduct

Achieved. Reduction of approximately 100kg per month.

Not done. Due to management changes.

Achieved.

Not performed. Because of departmental restructuring.

Not performed. The project will be done in 2010, after the organization of the Compliance department.

Goals 2009 Results

1.1

1.2

2.12.22.3

2.42.5

2.62.72.82.92.10

3.13.23.33.43.53.63.12

4.1

4.2

4.3

4.4

4.5

4.8

4.9

4.10

4.13

4.144.15

3

10

101910

1010

1010101010

4444444

11

11

11

11

11

5

11

11

14

44

Strategy and AnalysisStatement from the most senior decisionmaker of the organization about the relevance of sustainability to the organization and its strategy.Description of key impacts, risks, and opportunities.

Organizational ProfileName of the organization.Primary brands, products, and/or services.Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.Location of organization’s headquarters.Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.Nature of ownership and legal form.Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).Scale of the reporting organization. Significant changes during the reporting period regarding size, structure, or ownership.Awards received in the reporting period.

Report ParametersReporting period (e.g., fiscal/calendar year) for information provided. Date of most recent previous report (if any).Reporting cycle (annual, biennial, etc.)Contact point for questions regarding the report or its contents.Process for defining report content.Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers).Table identifying the location of the Standard Disclosures in the report.

Governance, Commitments, and EngagementGovernance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.Memberships in associations (such as industry associations) and/or national/international advocacy organizations.List of stakeholder groups engaged by the organization.Basis for identification and selection of stakeholders with whom to engage.


Global Reporting Initiative Indicators Page

EC1

EC4EC5

EN1EN3EN8EN16EN19EN20EN21EN22EN28

EN30

LA1LA3

LA4LA6

LA7

LA9LA10LA12LA14

HR1

HR4

SO5

PR1

PR2

PR6

PR7

PR8

12

1228

353636363737373736

37

2728

2830

30

28292928

30

11

14

21, 22

20, 23

20

20

23

Economic PerformanceDirect economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments.Significant financial assistance received from government.Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.

Environmental PerformanceMaterials used by weight or volume.Direct energy consumption by primary energy source.Total water withdrawal by source.Total direct and indirect greenhouse gas emissions by weight.Emissions of ozone-depleting substances by weight.NO, SO, and other significant air emissions by type and weight.Total water discharge by quality and destination.Total weight of waste by type and disposal method.Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.Total environmental protection expenditures and investments by type.

Labor Practices and Decent Work PerformanceTotal workforce by employment type, employment contract, and region.Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.Percentage of employees covered by collective bargaining agreements.Percentage of total workforce represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs.Rates of injury, occupational diseases, lost days, and absenteeism, and number of workrelated fatalities by region.Health and safety topics covered in formal agreements with trade unions.Average hours of training per year per employee by employee category. Percentage of employees receiving regular performance and career development reviews.Ratio of basic salary of men to women by employee category.

Human Rights Performance Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.Total number of incidents of discrimination and actions taken.

Society PerformancePublic policy positions and participation in public policy development and lobbying.

Product Responsibility PerformanceLife cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship."Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes."Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.


BRAS (Renin Angiotensin Blockers): A class of antihypertensive, in which occurs the blockage of the receptor of angiotensin II.

Comarketing: use by a pharmaceutical company of a drug manufactured by another pharmaceutical company to develop its own product/brand.

Copromotion: marketing by a pharmaceutical company of the brand of another pharmaceutical company.

Glossary


Expedient

General Coordination:

Consulting:

Project, creation and production:

Print:

Circulation:

Digital version:

Thanks:

Address and contacts:

Social Responsibility:

Social Responsibility

Etika Consultoriaetika@etikaconsultoria.com.brwww.etikaconsultoria.com.br

Rachel ArrudaAline Melo

Mattaveli Gráfica e Fotolito Ltda.

1 thousand copies

www.daiichisankyobrasil.com.br/ResponsabilidadeSocial

We thank all the employees, former employees and organizations that participated in drafting the report.

Daiichi Sankyo Brasil Farmacêutica Ltda.Avenida Doutor Chucri Zaidan, 920 - 15º andar Vila Cordeiro - SP |CEP 04583-110

Phone +55 11 5186-4590responsabilidadesocial@daiichisankyobrasil.com.brwww.daiichisankyobrasil.com.br/ResponsabilidadeSocial

report - daiichi sankyo brasil · the report covers all operations of daiichi sankyo brazil and was...

Documents