2012 Scrip 100: Survival of the fittest
This article was originally published in Scrip
It’s finally here. For a while, a dark cloud has been looming ominously over the industry and, on this occasion, when it rains, it pours. Billions of dollars in revenues are set to be washed away from the P&L sheets of leading pharmaceutical companies as some of their most prized assets, their blockbuster drugs, suffer the consequences of patent expiry.
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Japan’s pharmaceutical industry is in the midst of a defining period. The sector has evolved dramatically over the past decade, as companies attempt to gain ground on their western peers in meeting the demands of global healthcare markets. While the top ten companies in Japan pharma are dominant within their domestic market, generating more than half of overall prescription pharma revenues in Japan, a range of factors have provided the impetus for companies to expand their global footprint.
While neither Takeda Pharmaceutical nor Nycomed have confirmed that they might be engaged in takeover talks, the continued strength of the Japanese Yen in the global economy, fast-approaching generic pressures and a strong strategic rationale all contribute to the validity of this rumored deal. And at a price mooted at between $10bn and $12bn, such a transaction would be the largest acquisition in Takeda's history, surpassing its $8.8 billion purchase of Millennium.