Japan stock market week to April 13, 2009

Tokyo continued advancing in the period ended April 13, although the pace of the rise slowed significantly from the previous week's over 7%  gain due to profit taking. The Nikkei 225 gained 0.8%, to close at the  8,900 level after temporarily hitting the psychologically important  9,000 mark, while the Topix index ended up 2.2%. The market opened lower  with many investors sitting on the sidelines without fresh trading  incentives.  However, a rally was noted toward the end of the week as  investors took encouragement from a report that February machinery  orders rose 1.4% month-on-month against consensus projection of a  decline. Furthermore, the unveiling of an additional, large-scale  economy stimulus package led players to expect a positive impact. The  pharmaceutical index lost 0.3%, moving within narrow price range,  slightly underperforming the market.

Kissei rallied with a 2.2% gain, after US drugmaker Watson  Pharmaceuticals launched the anti-dysuria drug silodosin (US brand name  Rapaflotm and Urief in Japan) originated by Kissei (Marketletter April  13). Silodosin is a selective alpha 1A-adrenergic receptor antagonist  for the treatment of dysuria associated with benign prostatic  hyperplasia. The drug is expected to offer faster onset of  pharmacological effect than competitive agents and improves voiding as  well as storage symptoms of the ailment. Silodosin has been on the  Japanese market since 2006. Furthermore, the company awarded exclusive  development and marketing rights in India and Sri Lanka for the drug to  Eisai. The latter inched up 0.5%, reflecting the news that it had  out-licensed to Nobelpharma the exclusive rights to develop and  commercialize in Japan Gliadel Wafer (polifeprosan with carmustine  implant) for use during surgical procedures for malignant glioma  (Marketletter April 13). Eisai retains an option for the exclusive  commercialization right in Japan once the New Drug Application is  approved. Gliadel Wafer has been cleared in 18 countries, including the  USA and Europe. Early approval of the compound has been requested in  Japan, and it is now under review of the Investigational Committee for  Usage of Unapproved Drugs of the Ministry of Health, Labor and Welfare.