The Familiar Woes of Japanese Pharma


Published On: May 19th, 2009

Small WorldThough the mountains divide and the oceans are wide, it’s a small world after all. The problems of Japanese pharma — patent cliffs, troublesome acquisitions — sound mighty familiar to observers of the drug business in the U.S. and Europe.

As the FT points out, Takeda faces patent expiry on its diabetes drug Actos and its heartburn medicine Prevacid in the next few years; Eisai’s patent on the Alzheimer’s drug Aricept expires in 2010; and the patent on Astellas’s transplant drug Prograf recently expired in the U.S., and the drug will lose patent protection in Europe next month.

“Each company has its different issue – but this patent cliff issue is the biggest right now,” an analyst at Credit Suisse in Tokyo told the FT. “Although some of the US and European companies have gone through this painful experience for the last five to 10 years, Japanese companies have never been exposed to that much risk in the past.”

Daiichi Sankyo, one of Japan’s big drug makers, doesn’t face a big threat from imminent patent expirations. But the company took has taken some tough blows after it bought a majority stake in Indian generics manufacturer Ranbaxy last year. Ranbaxy has faced tough scrutiny and import restrictions in the U.S., and in January, Daiichi Sankyo took a write-down of nearly $4 billion on its Ranbaxy holding.

Photo: Associated Press


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The Familiar Woes of Japanese Pharma



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