The Leverkusen-based Bayer Group makes half its sales in Asia-Japan. Source: AP
TOKYO / FRANKFURT. The globalization of the pharmaceutical market will be felt – especially in relations between Japan and Europe. The Japanese push into Europe, the Europeans in Japan. The result: sharper competition with generic drugs – and more real innovation.
For Japan’s drug manufacturers, it is the "year 2010 problem" for foreign competitors a chance to new market opportunities: This year, running many drug patents from Japanese companies. Foreign suppliers can use this gap and make the same time wide on the promising Japanese generics market by seeking alliances with Japanese competitors. "Such mergers are likely to continue for longer, because they can bring benefits to both sides," said Mitsuo Sawai, head of Sawai Pharma.
The consolidation of the market is in full swing. The most recent example is the French of Sanofi-Aventis. The French pharmaceutical giant, announced a few weeks ago to enter into an alliance with the Japanese pharmaceutical company Nichi-Iko Pharmaceuticals to sell generic drugs in Japan.
Others think, at least in research and development in the search for partners. "The way to go has its own limitations," warns Yasuchika Hasegawa, president of the largest Japanese manufacturer Takeda. Hasegawa So will the budget for the search for new drugs to double to 20 billion yen (178 million €) points, while also working with American and European companies. Nichi-Iko is already one step ahead. The company will Sanofi-Aventis in June to offer 1.52 million shares via a private placement. The French will spend about five billion yen to gain a share of five percent of Nichi-Iko. The two companies will also enter into a joint venture.
It is a lot of money
The new Japanese government is currently pushing the expansion of generics in the face of increasingly expensive health care system. Generic medicines are, however, produced cheaper copycat drugs. Make medicines in Japan for around one fifth of the total health care costs. Given the demographically oldest society in the world Japan has always been considered promising sales base. The prescription market is there every year with just under nine trillion yen, the second largest in the world. There is also the area of OTC drugs, the ten billion euros will be great.
Last summer, the Japanese government has abolished the binding pharmacies for non-prescription drugs. Since then, supermarkets may sell light drugs. How important is that the Japanese market, shows and sales of the Asia Division of Bayer. Japan brings Germans around 1.09 billion euros, as much as the entire rest of the Asia region.
Generics manufacturers entering the Japanese market
While Germany have prevailed in the now largely generic with a market share of 60 percent, in Japan only 20 percent. The ruling party wants to expand this share to 30 percent by 2012. Not least because of these prospects, the world leader in pharmaceuticals, PfizerAlready built up a dedicated division for Japan and wants to sell generic drugs in 2011.
The Israeli-Japanese joint venture Teva Kowa Pharmaceuticals offers generic products already in Japan. Boehringer Ingelheim also look at this market: the beginning of the year the Group has announced to buy the Japanese pharmaceutical company SSP.
The Japanese companies are looking again to replace their dwindling home market and abroad. Daiichi Sankyo, Number two in Japan, aims among others to India, but also Europe – as well as Takeda. Recently, Takeda has sought permission to sell in Europe from 2012, his blood pressure-lowering TAK-491st The drug follows Blood Press, whose patent expires in 2013. Astella Pharma wants from Japan, however, especially in the U.S. make profits and to the U.S. company OSI . Do Astella also suffers from the "year 2010 problem": the patents for Prograf (transplantation) and Flomax (prostate funds) have already expired.
The smaller Japanese manufacturer sees Sawai Pharmaceutical Although the growth pressure, Sawai CEO responds to questions about alliances but rather forbidding. If an offer would come, "I explain to our shareholders that we can rely on our own strength," says the manager.
As Daiichi Sankyo the European business expands
With new drugs for cardiovascular and cancer wants the Japanese Pharmaceutical Companies Daiichi Sankyo its pharmaceutical business in Europe and North America driving. He is preparing to become the most important competitor for the German pharmaceutical company Bayer and Boehringer in the field of blood pressure-lowering and antithrombotic prophylaxis to be.
Daiichi Sankyo – The equivalent of 7.3 billion euro revenues from the number three in the Japanese pharmaceutical industry and the worldwide number 17 – is in its expansion in Europe to a great extent on their own forces. The domestic rivals Takeda, Astellas, and Eisai had recently purchased strengthened to broaden the portfolio and expand access to key markets like the U.S.. Daiichi Sankyo had a majority in 2008 acquired the Indian company Ranbaxy, a maker of off copycat drugs (generics).
Organic growth rather than major new acquisitions
In the core business of original drugs, the Japanese company, however familiar its own products and research projects. This is also true for the European business, for, the Japanese have done in its latest medium-term plan an expansion of last around 760 million euros to around 1.2 billion euros in sales in 2012. This represents an above-average growth rate of over 16 percent.
According to forecasts by market research institute IMS Health are developed pharmaceutical markets like Europe grow in the coming years between three and six percent. "These expansion plans are based exclusively on organic growth," said European head Reinhard Bauer Handelsblatt.
Focal point is the deal with cardiovascular drugs, in which Daiichi Sankyo looks better positioned than almost all competitors. By the end of the decade, says Bauer, "we had a good chance to become the leading provider of cardiovascular therapies to be". High hopes also rest on an appropriation for the prevention of thrombosis and heart attacks, with the Daiichi Sankyo Over the next few years, inter alia, similar substances from Boehringer and Bayer wanting to travel.
The fact that the two German competitors have one or two years ahead, farmer with his plans a little frightened. "We believe we have improved the substance and the more informative study design."
Buying a Munich-based biotech company pays off
Japan’s pharmaceutical companies face in drug development back on a great tradition. Several important classes of compounds were first explored by Japanese companies. Lack of own presence in western markets, they could market them in the past, many of these products in North America and Europe, but only with the help of local distributors. These shortcomings try the Japanese for several years to remedy by building their own distribution networks. We feel are Daiichi Sankyo with twelve subsidiaries in Europe now strong enough to market the product key Edoxaban alone.
Another mainstay of the pharmaceutical company to be built over the next few years in the field of cancer therapy. For a potential lung cancer drug that the Group developed in cooperation with the U.S. company ArQule, the partners were able to present recent good clinical test data.
A number of other interesting projects has Daiichi Sankyo two years ago acquired the Munich-based biotech firm U3 Pharma. With this acquisition, the Group was completely satisfied, "said Bauer. U3 deliver more drug candidates than we could handle themselves in clinical development.
Nonetheless, the oncology a work area in which the Japanese company sees further expansion needs. Where exactly should go to the trip, lets European head open Bauer. The management have a good concept for the development of this business, he says simply. "And we now plan the next step in our broad in this area set up.
Tags: sanofi aventis, drug patents, generic medicines, japanese pharmaceutical company, bayer group
