Therapeutic focus Takeda's largest franchise, and one of the fastest growing in the short-term, is diabetes and endocrinology. Sales reached $ 1,671m in 2002, representing 26.3% of the company's consolidated ethical sales. Actos dominated this franchise in 2002, with sales of $ 1,240m, but its sales will decline by 2008 as the glitazone class becomes less popular and the drug loses patent protection in 2006. Takeda has achieved strong growth for Actos primarily through international sales, which are boosted by a co-marketing agreement with Lilly in the US. Takeda's therapeutic focus is illustrated in the pie chart below. Major marketed products The table below summarizes sales...

Alliance activity The following figure illustrates Takeda's alliance network. Takeda has used partnerships and licensing as a key growth strategy, with the creation of TAP, a joint venture with Abbott, in the US. The company also used joint ventures to establish a presence in several European markets. TAP was established to exploit the potential of Takeda's portfolio in the US, using Abbott's market expertise to maximize drug penetration. The partnership has focused on marketing two highly successful drugs: the proton pump inhibitor Prevacid (lansoprazole), which posted revenues of $3,157m for TAP in 2002, and the prostate cancer drug Lupron (leuprolidc acetate), with sales of $876m. ...

Weaknesses Takeda suffers from a lack of potential in its late stage pipeline and a mature marketed portfolio. The company only has one product in phase III trials: TAK-375, a treatment for insomnia. This is forecast to achieve sales of $224m in 2008, representing only 3.5% of the company's sales in that year. Such a paucity of potential in its late stage pipeline is significant because a large proportion of Takeda's products have been on the market for some time. In fact, 59.1% of the company's sales in 2002 were derived from products that have been on the market for more than 10 years, and several such products are already losing sales to newer products and generics. Some 55.5% of Ta...

Summary 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. 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...

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 ...