Japan stock market week to July 14, 2008

Tokyo suffered another setback in the week to July 14. The Nikkei 225 fell 2.6% to close at the 13,000 mark, a psychologically-important level, following seesaw movements, while the Topix index was off 2.4%. Investors refrained from positive action due to nervousness about forthcoming quarterly earnings reports from US and UK financial companies. Meanwhile, the market was temporarily encouraged by the news on the last trading day of the review week that the US Treasury Department and the Federal Reserve Bank had outlined measures to rescue the two leading US mortgage companies, including purchasing shares in these companies, if necessary. The pharmaceutical index dropped 3.6%, underperforming the market.

Daiichi Sankyo lost 4.9%, without reacting to its launch of Loxonin tape, the new tape formulation of the anti-inflammatory agent loxoprofen sodium hydrate. The new product is a percutaneous absorption-type analgesic and anti-inflammatory agent jointly developed with Lead Chemical of Japan, containing the same constituents as Loxonin pills and powder (first launched in 1986). The pap formulation of Loxonin was marketed in 2006. The company is aiming to capture a 5% share in the tape formulation anti-inflammatory product market which is estimated at 88.0 billion yen ($827.2 million) with the top share being taken by Hisamitsu. The share performance was not aided either by a report that its affilate, Luitpold Pharmaceuticals, together with its subsidiary, American Reagent, announced that they had entered into an agreement with Fresenius Medical Care of an exclusive sublicense of Venofer (iron sucrose injection) for the treatment of end-stage renal disease. The agreement also includes a sublicense for the new generation of IV iron product, Injectafer (ferric carboxymaltose injection) for the enhancement of anemia treatment in end-stage renal disease. Luitpold in-licenses Venofer from Vifor Pharma of Switzerland.

Takeda dropped 4.8%, even though it submitted a New Drug Application to the Ministry of Health, Labor and Welfare of an anti-tumor drug, panitumumab (recombinant) for the treatment of progressed and/or relapsed colorectal cancer. The drug was originated by Amgen and is marketed in the USA and European Union under the brand name Vecitibix. In Japan, the clinical development of panitumumab has been undertaken by Takeda Bio Development Center, a subsidiary conducting clinical development of the products licensed from Amgen.