Japan stock market week to March 23, 2009

Tokyo extended its gain for a second week in the review period to March 23 (only four trading days as March 20 was a national holiday in Japan).  The Nikkei 225 advanced 6.6%, recovering the 8,200 level, while the  Topix index rose 6.7%. Investors' sentiment was brightened by government  moves worldwide to improve their economies and ease monetary constraint.  The US Federal Reserve Bank decided to purchase long-term Treasury  bonds, while the Bank of Japan chose to give massive funding in  subordinated loans to support the banking sector. The move, in addition  to Japan's expected additional economic stimulus package, encouraged  players to buy-back financial stocks as well as economy-sensitive  issues, including real estate, trading, marine transportation and  machinery. The pharmaceutical index was up 3.5% but underperformed the  market.

Takeda rallied with a 6.3% gain, after the Japanese launch of launch  Ecard, a fixed-dose combination of the company's angiotensin receptor  blocker Blopress (candesartan cilexetil) and a low-dose diuretic  (hydrochlorothiazide) for hypertension. The fixed-dose combination is  recommended by the Guidelines for the Management of Hypertension in  Japan. It is expected that the treatment will reduce adverse events of  thiazide diuretics and enhance anti-hypertensive effect as shown in a  Phase III clinical trial. Takeda's share action was also assisted by the  filing of a New Drug Application with the Ministry of Health, Labor and  Welfare for Lampion for secondary eradication of Helicobacter pylori  (page 20). Lampion is a single-pack containing the firm's proton pump  inhibitor Takepron (lansoprazole), Amolin (amoxicillin) and  metronidazole. In the event that the first eradication of H. pylori was  not successful with the standard triple therapy (PPI, amoxicillin and  clarithromycin), a triple therapy replacing clarithromycin with  metronidazole has been used, while Lampion containing these three drugs  is expected to provide improved compliance for the secondary eradication  of H. Pylori.

Eisai recovered with a 6.3% rise, reflecting that its subsidiary in the  Philippines had received approval from the Bureau of Food and Drugs for  Revovir (clevudine) for the inhibition of virus replication in chronic  hepatitis B. Eisai obtained exclusive rights to develop, manufacture and  market clevudine in eight Asian countries from Bukwang Pharma of South  Korea, and the Philippines is the first country to market the drug among  the countries. Clevudine has an effect on DNA polymerase for the  treatment of chronic hepatitis B.