Daiichi Sankyo

Summary

To primarily overcome the challenges presented by global competition, Daiichi Pharmaceutical and Sankyo signed an agreement to integrate their businesses on 13th May 2005. The joint holding company of Daiichi Sankyo was created on 28th September 2005, followed by the integration of pipelines from both companies and the start of a sales collaboration, in October 2005.

In fiscal 2008, for the first time since the company's inception, Daiichi Sankyo experienced a decline in sales. The company markets a number of dated products which during this period, managed to offset the gains made by Daiichi Sankyo's growth drivers, such as Olmetec/Benicar, Cravit and Loxonin. Despite this decline, re-organisation of the combined company following the merger has managed to achieve significant cost reductions. Consequently, Daiichi Sankyo's operating and net income experienced double-digit growth.

With a very dated product portfolio, it is perhaps unsurprising that Daiichi Sankyo has announced plans to enter the generic pharmaceuticals business via the acquisition of Ranbaxy Laboratories. This purchase, valued between US$3.4 million and US$4.6 million, is a major move for Daiichi Sankyo and is expected to have two key benefits: firstly, as mentioned, it will expand the company's pharmaceutical profile, with the company now offering both branded and generic products. Secondly, the move will considerably expand Daiichi Sankyo's global presence. Ranbaxy is based in India, one of the world's fastest growing pharmaceutical markets, however, it also has sales forces around the globe. During fiscal 2008, Daiichi Sankyo's presence outside of Japan continued to rise, with nearly a third of its sales now generated overseas. The purchase of Ranbaxy should further expand the company's global profile and should help it escape the confines of a difficult domestic market.

With its three core growth drivers, a strong pipeline, which contains a number of promising in-licensed compounds (prasugrel, rivoglitazone and denosumab in particular) and the acquisition of Ranbaxy, Daiichi Sankyo seems well placed to maintain its position as one of Japan's leading pharmaceutical companies.

Contents

• EXECUTIVE SUMMARY
  • A detailed and comprehensive overview of current financial position, company strategy, product and pipeline analysis
• THERAPEUTIC AREA FOCUS
  • Key product analysis and forecasting
• Cardiovascular
  • Artist (carvedilol)
  • Mevalotin/Pravachol (pravastatin)
  • Olmetec/Benicar (olmesartan medoxil)
  • Plavix (clopidogrel sulfate)
  • WelChol (colesevelam)
• Infection
  • Cravit (levofloxacin)
  • Gracevit (sitafloxacin hydrate)
• Bone and Joints
  • Evista (raloxifene)
  • Loxonin (loxoprofen)
• Metabolism
  • Venofer
• Immunity and Allergy
  • Zyrtec (cetirizine)
• Cancer
  • Topotecin (irinotecan)
• OPERATIONAL DATA
  • A wealth of background and detail
  • A full 5-year financial performance assessment
  • Key agreements
  • Infrastructure
  • Subsidiaries and joint ventures