Takeda's Japanese Sales Driving Optimism on 2004 Results

According to international reports, leading Japanese drugmaker Takeda is expected to exceed its own profit target this year, despite weak sales in the US. Estimates indicate that strong sales in its home market could drive the company's 2004 revenue to JPY298bn (US$2.89bn). Takeda had forecast a full year result of JPY290bn (US$2.81bn).

Official statistics indicate Japan's prescription drug market grew 1.5 percent between April and September, despite government efforts to curb costs. Meanwhile, in common with many local drugmakers, Takeda is reported to have reduced R&D spending, effectively offsetting a 4 percent fall in domestic drug prices over the year. The company also noted strong sales of its Blopress hypertension treatment and its Basen diabetes drug, as well as steady bulk exports.

However, there remain two principal areas of concern for Takeda, namely the company's flagging US sales and its limited R&D pipeline. The Japanese producer recently doubled its medical representatives in the US to roughly 4,000, in an effort to reverse a decline in local sales, which are led by the company's Actos diabetes therapy. The company already has some 2,000 representatives at its joint venture with US drugmaker Abbott Laboratories. Meanwhile, Takeda was recently forced to halt development on a compound intended as a successor drug to Actos. A diabetes drug development partnership with US pharmaceuticals company Eli Lilly is also yet to announce major new products.