Japanese drugmakers a growing presence in M&A

Japanese drugmakers have resorted to M&A to cushion the blow in earning due to patent losses and lower drug prices.

Astellas Pharmas in particular has projected a 26% gain in full-year net profit despite of the industry wide downturn. This can be attributed to the $4 billion purchase of US drugmaker OSI Pharmaceuticals by the Japanese no.2 drugmaker by market capitalization which has proven to be a good catch: For the latest nine-month period through December, Astellas saw the sales of OSI's Tarceva cancer drug jump 55%. The company has also been streamlining its expenditure to reduced losses in profits due to expired patents, an effort which also precipitated its success besides its M&A strategy.

Meanwhile, the spotlight is now on Japanese pharma giant Takeda Pharmaceuticals after its headlines-grabbing $13.7 billion mega-deal to buy Swiss drug maker Nycomed. Cost-controlling has been underway since then to compensate for the large initial cost which has halved its full-year net profit. Emerging market sales more than quadruple following the integration of Nycomed's earnings from the October-December quarter, a positive sign to better things to come.

The verdict on Takeda’s acquisition remains. Will it pay off? How will Takeda and Astellas fare in the future and what would this mean to the growing Japanese pharmaceutical industry?

Takeda and Astellas will be some of the pharmaceutical giants present at the 5th annual BioPharma Asia Convention 2012. Mr Ken Araki, Senior Director, Takeda Pharmaceuticals will be speaking on “Positioning your company for merger and acquisition to obtain the best deal value” at Pharma Partnering and Investment World Asia. Mr Tetsuomi Takano, Senior Director, Head of Asian Development Strategy, Asian Development will be speaking on “Accelerating regulatory approvals for clinical trials in Asia” and “Panel: Exploiting the favourable clinical trial environment in East Asia” at Pharma Trials World Asia. So do come down to hear them speak.

Register online today to reserve your seat or contact Huisan Soh at +65 6322 2770 or huisan.soh@terrapinn.com

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