Abstract
Mitsubishi Tanabe Pharma Corporation was created through the merger of Tanabe
Seiyaku and Mitsubishi Pharma. Tanabe is the surviving company, with each
share of Mitsubishi converted into 0.69 share of Tanabe' s common stock. The
new company is a consolidated subsidiary of Mitsubishi Chemical Holdings,
which holds the majority share.
Mitsubishi Tanabe Pharma' s initial focus is on the development and marketing
of products in the following therapeutic areas: Cardiovascular and
Respiratory; Neurology; Immunology and Inflammation; and Gastrointestinal and
Metabolism.
Market conditions in Japan are becoming increasingly fierce due to
governmental drug price revisions and incoming competition from non-domestic
major pharmaceutical companies. In the last two fiscal years, there have been
four mergers between Japan' s leading pharma businesses, with the creation of
Mitsubishi Tanabe being the latest. More recently, Kyowa Hakko and Kirin
Brewery have also announced plans to merge.
Superficially, Mitsubishi Pharma and Tanabe would seem to compliment each
other quite well, with both historically marketing products in similar
therapeutic areas and both bringing unique qualities to create a well equipped
merged company. Mitsubishi Pharma' s product portfolio was the most dated,
however, the company brings to the merger considerable resources and
infrastructure in biotechnology, mainly through its Benesis Corporation.
Tanabe has several lucrative licensing agreements in place and thus the merged
company is expected to continue to benefit from these. Tanabe' s arrangement
with Johnson & Johnson is key to Mitsubishi Tanabe' s long-term growth as it
includes licences for infliximab and golimumab, two anti-TNF antibodies
indicated to treat a range of inflammatory and autoimmune indications.
Infliximab has already been launched in Japan and is expected to become
Mitsubishi Tanabe' s top-selling product in fiscal 2008. Golimumab is still in
early-stage development, however, its similar profile to infliximab suggests
development should be successful, and the company will hope it can replicate
the sales of infliximab.
Both parent companies had recently reported declines in revenue and
pharmaceutical sales, therefore, this merger was vital. Our forecasts suggest
that Mitsubishi Tanabe can expect sustained growth within the medium-term,
confirming the benefits of the merger strategy. However, with three other
large, merged companies competing domestically, as well as a fourth expected
in 2008, competition is expected to impact the merged company in the long-term
as much as it did the parent companies in recent history.
This new strategic analysis report Mitsubishi Tanabe Pharma: Pipeline ·
Products · Performance · Potential, provides a complete and
critical review of the company and includes unique and independent assessments
and forecasts of key products. 4D Pharma reports are updated with the latest
data on a continuing basis and the full report is released quarterly. Once a
year the report undergoes a major review in line with the company' s year end.
Buyers of the print/pdf editions will receive the latest version and quarterly
updated reports for a year. Buyers of the web edition receive online access
for one year via an easy-to-use interface with fast navigation and a full text
search facility. All formats are the same price.
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