Takeda
Takeda is the largest pharmaceutical company in Japan and the 16th largest globally. It experienced strong ethical sales growth of 8.9% (excluding sales of vitamins) to $6,357m in 2002. However, sales growth is forecast to slow, increasing year-on-year by just 0.2% between 2002 and 2008. A Future growth is at risk due to Takeda's weak late stage pipeline and mature portfolio of marketed products. Some 55.5% of Takeda's sales were at risk of generic competition in 2002. With only one pipeline product expected to be launched by 2008, the company must increase its investment in in-licensing.
Takeda is currently an attractive licensing partner for smaller Japanese companies with negligible overseas presence. However, as these firms expand their international operations, they will seek alternative licensing partners and attempt to launch their drugs themselves, reducing licensing opportunities for Takeda.
Partnerships and joint ventures have driven Takeda's growth over recent years, with TAP, the joint venture with Abbott in the US, playing a major role. However, Takeda is now expected to operate increasingly independently. With the creation of Takeda Pharmaceuticals North America, the company has already signaled its intention to go it alone in the US.
Takeda has adequate funds to implement several major strategic moves, with $6,610m of cash and short-term investments of $2,704m in 2002. It also has relatively little debt, with total liabilities of S3,602m.
Takeda's largest franchise is diabetes and endocrinology, sales of which reached $ 1,671m in 2002 and accounted for 26.3% of the company's consolidated ethical sales. Actos dominates the franchise but its sales will decline by 2008 as the glitazone class becomes less popular and the drug loses patent protection in 2006.
The company's only phase III compound, the insomnia drug TAK-375, will not be launched until at least 2006 and will struggle to erode the competitive advantage gained by Pfizer/Neurocrine with their earlier launch of indiplon.