Sankyo
As the second largest Japanese pharmaceutical company, Sankyo\s pharmaceutical division reported a 5.2% increase in sales over the period 2001-02, up from $3,368m to $3,542m. This growth was driven by ethical sales, which rose by 6.1% and accounted for 74.3% of the company's total sales.
As Sankyo's best selling product, Mevalotin accounted for 41.7% of sales in 2002 but generic competition entered the Japanese market in mid-2003. Generic pravastatin is expected to reach the US in 2006.
Therapeutic expansion is a key part of Sankyo's strategy, with both in-house development and in-licensing broadening the company's focus into new areas, such as diabetes and respiratory disorders.
Sankyo has used partnerships and licensing extensively over recent years to supplement both its late and early stage pipeline, with nine new agreements signed since the beginning of 2002. The company's early stage licensing activity highlights a willingness to fund a number of first-in-class products.
The company has suffered from declining profitability over the last five years. Sankyo does not have the financial strength to undertake any major strategic moves at present, although it is able to continue to fund its licensing strategy.
The bile acid scqucstrant WelChol's main advantage in a market dominated by statins is its non-systemic mode of action. However, the high pill burden associated with the drug and its potential for unpleasant side effects will limit sales growth to around $328mby 2008.
After delays triggered by safety concerns, both Lipovas and Calblock were approved in 2003. Although these products have lower sales potential than originally expected, they should go some way towards replacing lost sales of Mevalotin.