IMS Company Profiles - Report Buyer

IMS COM PANY PRO FILES TAKEDA
prod ucts for hyperlipidemia, ath ero scle ro sis, can cer, schizo phre nia, de pres sion, and con sti pa tion-type
inflammatory bowel syndromes.
Fu ture Pros pects
• Chal lenge of pat ent losses with PDUFU de lays
Takeda pres i dent Yasuchika Hasegawa has ac knowl edged that the next year or two will be a test ing time
for the com pany while its four main stay global stra te gic prod ucts lose pat ent pro tec tion over the next five
years and re views of their suc ces sors are de layed. Prevacid (lansoprazole) loses pat ent pro tec tion in No -
vem ber 2009 fol lowed by Actos (pioglitazone) in 2011 and then the an gio ten sin II re cep tor blocker
Blopress (candesartan) in 2012 and Leuplin (leuprorelin) in 2014. The pat ent ex pi ra tion of Actos and
Prevacid alone is ex pected to amount to an nual losses of over Yen500 bil lion in 2009 through 2011 and
Takeda has said it will work to pri or i tize re sources for launch ing the new prod ucts and deal ing with the dif -
fi cult sit u a tion. In its 2006-2010 me dium-term man age ment plan, Takeda has set it self a goal of achiev -
ing sales of in-house eth i cal prod ucts of Yen1.4 tril lion in fis cal 2010 (end ing March 2011), as an in terim
goal on the way to Yen2 tril lion by the year end ing March 2016. More over, Takeda plans to in vest a tem -
po rary re cord break ing amount in R&D, al most Yen500 bil lion, al though has stressed that the in crease
will be tem po rary In Feb ru ary 2009, fol low ing the re lease of its nine-month re sults, Takeda pro jected
that sales for the full year (end ing March 2009) will reach Yen1.6 tril lion, a 13.5% in crease over the pre vi -
ous year while net prof its are set to de cline 45.1% to Yen195 billion, incorporating a number of
Millennium merger related costs.
Al though the larg est com pany do mes ti cally, Takeda is a min now by global stan dards with sales around a
quar ter that of Pfizer’s, and Takeda hopes that the lat est ac qui si tions will boost it into the top 15 US phar -
ma ceu ti cal com pa nies. Re al iz ing this need to grow, Takeda has been among the most ac quis i tive of the
do mes tic com pa nies in re cent years and its lat est bold ac qui si tion rep re sents the need of Jap a nese
pharma to es cape from a mar ket pinched by price cuts in search for growth from the US. The strength of
the Yen ver sus the dol lar has also made US com pa nies par tic u larly at trac tive tar gets and the ac qui si tion
of Mil len nium came in the midst of a Jap a nese spend ing spree of for eign firms. This started with Eisai’s
$3.9 bil lion take over of MGI Pharma in the USA in De cem ber 2007 through to Shionogi’s Oc to ber 2008
$1.4 bil lion merger with Sciele. Eisai’s pur chase closely fol lowed two pre vi ous US in vest ments of
Morphotek and Ligand that ex panded its on col ogy fran chise while an other ma jor Jap a nese player
Astellas, pur chased Agensys for $0.5 bil lion in 2007. Takeda’s move to buy into the lu cra tive on col ogy
set ting re flects other re cent sim i lar strat e gies, in clud ing Eli Lilly’s $6.5 bil lion pur chase of ImClone Sys -
tems to ob tain Erbitux (cetuximab) and a pipe line of early-stage on col ogy prod ucts. The ac qui si tion of
Mil len nium has been de scribed as the most sig nif i cant and stra te gi cally transformative deal in Takeda’s
history and will help it realize its goal of becoming one of the top three oncology companies.
Al though an a lysts crit i cized the deal for be ing too ex pen sive, six months on, it looks to have been a
well-planned move as sales of Velcade topped $1 bil lion, boosted by the June 2008 ap proval as a first-line
ther apy for mul ti ple myeloma. The ad di tion of Velcade may be Takeda’s lone bright spot how ever as the
pat ent ex pi ra tions of Actos and Prevacid near with lit tle other than Velcade to fill the gap fol low ing un for -
tu nate missed PDUFU dates for the fol low-on prod ucts, DPP-IV in hib i tor SYR 322 (alogliptin) un til June
2009, and Kapidex (TAK 390 MR) for pep tic ul cers, which fi nally re ceived ap proval in Jan u ary 2009. This
ap proval made lit tle im pact on Takeda’s share price and with slow ing US sales, an a lysts are con cerned
about the risk from de creas ing sales of Actos in the US to gether with the de lays in ap proval of SYR 322
which could help to off set that risk. Al though the de lay to ap proval of alogliptin, which now lags well be -
hind Merck’s Januvia is a huge blow for Takeda, ap proval of a pill com bin ing alogliptin with Actos is ex -
pected in the sec ond half of 2009 which could be a sig nif i cant ad di tion to its di a be tes fran chise. The lat est
ap prov als of Kapidex and Uloric (TMX 67) for gout (ap proved in Feb ru ary 2009) will give TPNA two new
drug launches in the first half of 2009 and further strengthen Takdea’s presence in the US.
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