Zeneca Goes It Alone In Japan

Following the termination of a 20-year distribution agreement in Japan with Sumitomo Pharmaceuticals, Zeneca Yakuhin on January 1 started its own distribution. The agreement to drop their arrangement was reached in 1991.

Under the new arrangements, Zeneca Yakuhin will continue to operate as a joint venture between Zeneca (60%) and Sumitomo (40%). Although the Japanese pharmaceutical market is dominated by Japanese companies, Zeneca Yakuhin ranks among the top nine foreign-owned companies, and is the largest UK-based drugmaker operating in Japan, according to the company. Zeneca had sales of around L380 million ($593.0 million) in 1993 and a market share of just under 1%. Over the last ten years the company's sales have grown three-fold.

Zeneca is moving to self-distribution because of the benefits it will bring to the business in terms of managing the relationship with its key wholesalers, and it has been involved in many discussions with wholesalers to ensure their partnership, it says.