Japan stock market week to Jan 12, 2009

Tokyo retreated in the week to January 12 (four trading days only because the        last day was a national holiday in Japan). The Nikkei  225 was down 2.3%, to close at the 8,800 mark, while the Topix index  fell 2.4%. The market opened higher but suffered a setback towards the  weekend, reflecting profit-taking of export-oriented issues and a dearth  of positive news. Investors continued to anticipate that forthcoming  October-December 2008 quarterly earnings reports of Japanese companies -  to be unveiled later this month - would likely involve some downward  revisions to their full-year guidance due to the impact of the global  economic downturn and the yen's strength. The pharmaceutical index  dropped 4.7%, underperforming the market.

Takeda was off 2.8%, without responding to a report the previous week  that it had commenced a Phase III clinical trial of ATL-962, a treatment  for obesity-related diabetes or dyslipidemia. The drug, originated by  the UK's Alizyme, has a mechanism of action for causing weight loss by  reducing digestion or the absorption of fat from the diet. Takeda  in-licensed the product in January 2004, acquiring exclusive rights to  develop, manufacture and market it in Japan and is to pay milestones and  royalties on future sales. Takeda's share performance was not aided  either by the receipt of Ministry of Health, Labor and Welfare approval  of an additional indication - concomitant therapy with biguanides - for  Actos (pioglitazone), its insulin-sensitizer antidiabetes drug.  Biguanides act primarily by reducing the amount of glucose produced by  the liver. In the comparative study, Actos/biguanides concomitant  therapy showed a statistically-significant difference from biguanides  monotherapy on improving HbA1c without increasing the risk of  hypoglycemia. Takeda expects that the concomitant therapy will offer an  additional option for superior glycemic control.

Meiji Seika lost 2.9%, despite a media report that the company is set to  release a new mid-term strategic plan for the fiscal years ending 2010  and 2012 targeting expansion of generic drug sales to 18.0 billion yen  ($201.6 million) from the estimated 10.5 billion yen in the current  fiscal year. The company also plans to expand sales of drugs in core  therapeutic areas such as antibiotics and central nervous system  treatments, expecting to receive an approval in Japan in the next fiscal  year for ME1211, an oral carbapenem antibiotic for the treatment of  respiratory tract infections, and Org3770, its antidepressant and  antianxyolitic. The firm's detailing force is to be increased to 800  from 700 at present. Overseas business will be strengthened, with the  planned introduction of the antibacterial drug Meiact (cefditoren  pivoxil) in newly-developing countries.