Chugai
Chugai is expected to show record sales growth over the next five years, initially driven by the consolidation of Nippon Roche's products and then by the launch of up to six new products by 2008.
As part of the Roche Group, Chugai has gained the backing of a far larger parent company with not only a strong pipeline but also the financial support to fund future strategic moves.
One limiting factor of Chugai's alliance with Roche is that it will further concentrate Chugai's sales in the Japanese market, forcing it to expand its domestic sales in a difficult operating environment and at a time when most Japanese companies are looking overseas for future growth.
Chugai's traditional focus has been on its hematology, cardiovascular and oncology franchises. The merger with Nippon Roche has further increased its focus on oncology, while new product launches and licensing deals will enable it to penetrate the hepatitis and osteoporosis markets.
Chugai's key product is the anemia drug Epogin, which generated sales of $528m in 2002. Sales will continue to grow to $575m in 2005 but decline slowly thereafter as it loses market share to Kirin's NESP and also potentially to generic erythropoietin.