Daiichi
Daiichi is in a relatively weak financial position following a year of declining sales and one-off costs relating to the establishment of Daiichi Suntory Pharmaceuticals. Thus, it is not currently able to make any significant strategic moves.
Total sales declined by 3.2% to $2,572m in 2002. Such poor sales performance was due to reimbursement price cuts in Japan in 2002, increasing competition to core products and safety issues surrounding the antiplatelet drug Panaldinc.
Domestic sales accounted for 78.2% of Daiichi's sales in 2002. However, geographic expansion forms a key part of the company's growth strategy. As part of its 10 year plan, Daiichi aims to generate 40% of sales outside Japan. Growth is supported by the large number of trials being conducted overseas.
Daiichi focuses on infectious and cardiovascular diseases. The importance of these therapy areas to the company's sales will increase to 2008 following a decline in sales of non-core products.
Daiichi's lead product, Cravit, is patent protected in Japan until 2006 and in the US until 2010. Sales could rise to over S600m in 2005 but will decline thereafter as generic competition penetrates the domestic market.
The company has a strong R&D pipeline, with two late stage products forecast to achieve significant sales by 2008: the antibacterial DU-6859a (sitafloxacin), in registration in Japan and in phase III trials overseas; and the in-liccnscd antithrombotic clopidogrel, which is in phase III in Japan.
Daiichi's stated R&D focus is on the development of anti-infectives, anticancer drugs and cardiovascular therapies. Although its pipeline reflects this commitment to some degree, it has only one anti-infective in late stage development.