Japan stock market week to Mar 3, 2008

Tokyo retreated in the week to March 3, due to weak New York markets and the resurgence of the yen versus the dollar. The Nikkei 225 dropped 6.6%, to finish below the 13,000-mark, while the Topix index fell 6.2%. Investors were encouraged early in the period by US credit rating companies, such as Standard & Poor, affirming the top rating for leading American bond insurers. However, the positive view was eliminated later after the US Federal Reserve Bank's chairman warned about possible bankruptcy of small banks which have real estate investments. Investors worried about the prospect for global credit and financial markets. The pharmaceutical index was off 4.9%, but still outperformed the market.

Astellas lost 7.2%, without reacting to the news of its receipt of a positive opinion from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMEA) recommending the marketing authorization of the antifungal agent Mycamine (micafungin sodium; Marketletter March 3). The application was submitted in the European Union in April 2006. The company expects the marketing authorization around May this year. The drug is indicated for the treatment of invasive candidiasis; prophylaxis of candida infection in patients undergoing allogeneic hematopoietic stem cell transplantation.

Hisamitsu ended down 5.5% even though the US Food and Drug Administration approved the company's Salonpas Pain Relief Patch (FS-67) as an over-the-counter topical pain-reliever. The product contains methyl salicylate and l-menthol as active ingredients and can be used for the temporary relief of mild-to-moderate aches and pains of muscle and joints associated with arthritis, sprains, bruises and simple back ache. The product will be manufactured at the company's Japanese plant and marketed in the USA by its subsidiary.