Takeda Entering New Product Cycle

Kunio Takeda, president of Japan's Takeda, has described the group'sperformance in fiscal 1997 as "excellent," largely as a result of the overseas performance of TAP Holdings. This compensated for the impact of the weaker domestic pharmaceutical market, a result of drug price reductions. The nonpharmaceutical business also suffered from a worsening business environment.

Despite these conditions, consolidated net sales improved by 0.4% to $6.4 billion, with the overseas affiliates posting a 14.4% increase in net income to $618 million. However, Mr Takeda noted that the situation in Japan is becoming so critical, particularly with regard to delays in the approval of new products, that the group is implementing a revised management plan for 1998-2000, to replace the earlier five-year plan (1995-2000). This will entail a restructuring of the product portfolio in Japan, as well as moves to streamline the drug discovery process and boost efficiency.

Overseas, the formation of Takeda America Holdings in the USA at the end of 1997, as well as marketing subsidiary Takeda Pharmaceuticals America in May 1998, will boost marketing efforts while operating in tandem with the existing Takeda Abbott Pharmaceuticals joint venture. The new marketing system is now in place, in readiness for the launch of Takeda's fourth international strategic product, pioglitazone for diabetes, which will be copromoted by Eli Lilly and is scheduled for launch in 2000.