Japan stock market week to Jan 28, 2008

Tokyo continued a pullback in the week ended January 28. The Nikkei 225 fell 1.8%, barely maintaining the 13,000 level at the close, while the Topix index edged down 0.1%. Tokyo opened the review week with a daily 5.6% tumble as part of the turmoil throughout global stock markets on fears that a US recession might cause a worldwide economic downturn. A robust recovery took place mid-week due to the US announcement of an emergency interest rate cut and a proposed economic stimulus package. However, the last trading day saw a steep decline, eliminating the earlier gain as a result of a decline in US and Asian markets and the yen's appreciation. The pharmaceutical index dropped 1.6%, slightly outperforming the market.

Shionogi gained 2.9% on the report that AstraZeneca, which licensed the firm's anti-hyperlipidemia drug Crestor (rosuvastatin), had begun a new clinical trial to compare the 40mg dose of the drug head-to-head with Pfizer's Lipitor (atorvastatin) 80mg to discover their efficacy in decreasing progression or inducing regression of atherosclerosis. The two-year study, named SATURN, will enroll 1,300 patients worldwide for completion in 2011 and is a part of AstraZeneca's GALAXY clinical trials program to find out the impact of rosuvastatin on the control of lipids, atherosclerosis and cardiovascular morbidity and mortality. Shionogi's share action was also aided by its launch of a new dry syrup formulation of the selective H1 receptor antagonist anti-allergy agent Claritin (loratadine) originated by USA-based Schering-Plough. The dry syrup formulation is for pediatric use for children aged three and older and is claimed to be easy to dispense because it is designed to suspend readily in water without forming. Claritin tablets have been marketed for the treatment of allergic rhinitis, urticaria and itching associated with skin diseases.

Takeda remained unchanged, without finding support from a report that TAP, the joint venture with Abbott, had reported encouraging results for the fourth quarter of 2007 in line with the expectation. Net income edged up 2.6% year-on-year to $243.0 million. Although turnover of the proton pump inhibitor antiulcerant Prevacid (lansoprazole) fell 22.4% to $550.0 million, sales of the prostate cancer drug Lupron (leuprorelin acetate) rose 4.3% to $171.0 million. TAP filed a New Drug Application with the US Food and Drug Administration of the anti-ulcer drug TAK-390MR, its successor to Prevacid, a modified-release form of dexlansoprazole, in December 2007, earlier than planned.