As in-licensing opportunities are reduced and competition for market share in Japan increases with the rising penetration of western pharma companies, domestic mid-cap players must alter their strategies to remain independent, writes market analyst Datamonitor this week.
How can the evolution of the mid-cap Japanese sector be exploited to maximise competitive edge? According to a new report from Datamonitor released on Monday geographic expansion will be a key driver for growth in the mid-cap sector, and those companies successful in establishing joint ventures with western partners will the be most likely to maximise their revenues.
In addition, the report claims that companies that rely heavily on in-licencing and co-development are likely to find it increasingly hard to source products, while those with strong internal R&D may find themselves the target of aggressive M&A activity.
However, the report adds, R&D expenditure as a proportion of total sales is lower for Japanese companies than for western pharmaceutical ones, at 11.9 per cent compared to 13.8 per cent.
The report benchmarked the leading players in the Japanese market by 2001 sales, operating profits and R&D spending and by forecast sales between 2002 and 2007. Leading mid-cap companies in the report include Dainippon, Kirin Brewery, Kyorin, Ono Pharmaceutical, Sumitomo and Tanabe.