Tokyo stocks to October 8, 2007

Tokyo continued a winning streak in the week to October 8 (four trading days only because the last was a national holiday in Japan). The Nikkei 225 rose 1.3%, following a climb to a two-month high of 17,100 level temporarily early in the week, aided by the yen's depreciation against major currencies and the strength of New York markets. The Topix index was up 2.5%. Investor sentiment improved on the view that the market might have largely factored in the negative impact of the US subprime mortgage crisis. High-priced, export-oriented issues and some domestic economy-based stocks, including banks, brokers and real estate companies, met buying by international investors. The pharmaceutical index was off 0.1%, underperforming the market.

Daiichi Sankyo gained 3.5% after it received approval from the US Food and Drug Administration for Azor (amlodipine and olmesartan medoxomil) for the treatment of hypertension. The drug is a once-daily, single-tablet combination of Pfizer's calcium channel blocker amlodipine and Daiichi Sankyo's angiotensin receptor blocker olmesartan (sold as Benicar in the USA). The company expects that the combination drug will provide doctors with a strong new treatment option for patients who are uncontrolled on other anti-hypertensives.

Ono inched up 0.2% on its announcement that Swiss drug major Novartis had received approval from the European Commission for its Exelon patch (rivastigmine transdermal patch) for mild-to-moderately-severe Alzheimer's disease. Ono in-licensed the product from Novartis and is conducting a Phase III trial in Japan. The patch's European clearance followed a similar action in the USA in July. The International IDEA study involving 1,200 patients showed the product's comparable efficacy to the highest doses of Exelon capsules and significant improvement in memory, as well as the ability to perform daily activities compared to placebo. Ther were also fewer cases of gastrointestinal side-effects.