Tanabe
In 2002, 88% of Tanabe's revenues were generated in Japan. The company must establish a more direct presence overseas to escape the downturn in the Japanese economy and ongoing domestic price cuts.
In April 2000, Tanabe initiated 'Bridge 2?, a three year reform plan. By reducing staffing levels and closing and integrating certain manufacturing facilities, it has been able to contain costs to achieve a 3.6% increase in operating profit.
Most of Tanabe's products have lost patent protection and are experiencing decreasing sales. In 2002, 68% of the company's ethical sales were derived from products that were already in decline, mainly due to the loss of patent protection.
Sales of Tanabe's current lead product, Herbesser, are falling due to competition from generic versions of diltiazem and the increasing use of second generation calcium channel blockers and angiotensin II receptor blockers.
By 2008, sales of the arthritis, immune and inflammatory disorders franchise will have increased as Remicade achieves uptake in arthritis and Crohn's disease markets. The predicted success of this product should improve Tanabe's in-licensing prospects in this therapy area.
Despite expanding its therapeutic focus by investing in new therapy areas, Tanabe has a weak R&D pipeline with only six projects in development.