quality data
expert analysis
intuitive delivery
the home of Business Intelligence
© Datamonitor
PharmaVitae: Daiichi Sankyo
Pharmaceutical Co., Ltd
HC00068-029
Slidepack
01/12
the home of Business Intelligence
quality data
expert analysis
intuitive delivery
15,000
14,250
13,500
12,750
12,000
11,250
10,500
9,750
9,000
8,250
7,500
6,750
6,000
5,250
4,500
3,750
3,000
2,250
1,500
750
0
-750
100%
95%
90%
85%
80%
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
-5%
04
05
06
07
08
09
10
Growth rate
11
12
Sales ($m)
13
14
15
16
Year-on-year growth rate (%)
Sales ($m)
Daiichi Sankyo prescription pharmaceutical performance, sales ($m) and growth rate
(%), 2004–16
Daiichi Sankyo financial performance ($m), 2004–16
25,000
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
-20,000
04
05
06
07
08
09
10
11
12
13
14
15
16
Rx pharma
Other revenues
COGS
S,G&A
R&D
Other operating expense
Operating profit
Daiichi Sankyo launch, core and expiry configuration vs peer set, sales ($m), 2010–16
+4,000
+2,000
+0
-2,000
-4,000
Launch
Net
EIS
OTS
TAK
Expiry
Average
Core
DNS
MITS
SHI
AST
-6,000
DAI
Prescription pharma sales ($m)
+6,000
SWOT analysis of Daiichi Sankyo
Strengths
•
Lucrative cardiovascular portfolio spearheaded by the
blockbuster olmesartan antihypertensive franchise.
•
High levels of industrial collaboration highlighted by inlicensing with companies spanning Big Pharma and
beyond.
Weaknesses
•
Over exposure to the cardiovascular market, deriving half
of its total prescription pharma revenues from CV drugs,
leaving Daiichi open to threats from a number of angles.
•
Domestic growth could be hampered by growing use of
generics and reforms impacting price.
•
Impressive year for new drug approvals/launches in
2011, most notably gaining green lights for Memary,
Zelboraf, Nexium and Lixiana, all of which have now
launched.
•
Daiichi forced to write down an almost $4bn loss after
Ranbaxy manufacturing processes came under scrutiny
from FDA, more than two thirds of the original purchase
price paid by Daiichi for a controlling stake in Ranbaxy.
•
Operating profits have shown signs of recovery after
declines in 2008 and 2009.
•
Limited capital available for further deals after
acquisitions of Ranbaxy and Plexxikon.
Threats
Opportunities
•
Two new launches for thrombosis market, Effient and
Lixiana, could help drive Daiichi’s market share in this
lucrative CV segment and broaden its focus away from
hypertension.
•
2016 patent expiry of olmesartan will have significant
impact on Daiichi but not within the time constraints of
this analysis. Indirect generic competition from elsewhere
in the ARB class could hamper olmesartan sales.
•
Expansion opportunity in the US market through
established products and recent/forthcoming launches.
•
•
Emerging market growth strategy strengthened by
acquisition of Ranbaxy, particularly in India.
Weaker than hoped uptake of newly launched pipeline
drugs, one example being Effient (prasugrel), which
remains a key growth driver for Daiichi despite initially
showing weak sales growth.
•
Generic version of Lipitor could propel Ranbaxy generics
business in US, though competing authorized generics
may limit the commercial potential of this venture.
Daiichi Sankyo’s key product sales ($m), 2004–16
16,000
14,000
Sales ($m)
12,000
10,000
8,000
6,000
4,000
2,000
0
04
05
06
Rest of portfolio
Loxonin
Mevalotin
Cravit
07
08
Ranbaxy
Zelboraf
ARQ 197
Venofer
09
10
11
12
13
Benicar/Benicar HCT
Memary
Azor
Welchol
14
Effient
Artist
Lixiana
15
16
Daiichi Sankyo’s key product growth drivers and resistors ($m), 2004–10
12,000
10,000
6,000
4,000
2,000
Start / end year
Positive growth
Negative growth
2010
Rest of portfolio
Mevalotin
Azor
Welchol
Artist
Loxonin
Cravit
Ranbaxy
Benicar/Benicar
HCT
0
2004
Sales ($m)
8,000
Daiichi Sankyo’s key product growth drivers and resistors ($m), 2010–16
16,000
14,000
10,000
8,000
6,000
4,000
2,000
Start / end year
Positive growth
Negative growth
2016
Rest of
portfolio
Cravit
Welchol
Gracevit
Lixiana
ARQ 197
Memary
Zelboraf
Effient
Ranbaxy
0
2010
Sales ($m)
12,000
Daiichi Sankyo prescription pharmaceutical sales by therapy area ($m), 2004–16
16,000
14,000
12,000
Sales ($m)
10,000
8,000
6,000
4,000
2,000
0
04
05
CV
06
07
Other
Onco
08
ID
09
I&I
CNS
10
Uro
11
Hema
12
13
14
15
Resp
GE
Musco
Endo
16
Daiichi Sankyo prescription pharmaceutical sales by geographic region ($m), 2004–
16
16,000
14,000
12,000
Sales ($m)
10,000
8,000
6,000
4,000
2,000
0
04
05
06
07
08
09
Japan
10
US
11
RoW
12
5EU
13
14
15
16
Daiichi Sankyo launch, core and expiry configuration, sales ($m), 2010–16
14,000
+1,039
14,067
2016
+1,048
Generic
16,000
+2,399
-930
12,000
10,509
8,000
6,000
4,000
2,000
Start / end year
Expiry
Core
Launch
0
2010
Sales ($m)
10,000
Positive growth
Negative growth
Daiichi Sankyo prescription pharmaceutical sales by molecule type ($m), 2004–16
16,000
14,000
12,000
Sales ($m)
10,000
8,000
6,000
4,000
2,000
0
04
05
06
07
Small molecule
08
09
10
Monoclonal antibody
11
Vaccine
12
13
14
Therapeutic protein
15
16
Daiichi Sankyo prescription pharmaceutical sales by source of product ($m), 2004–
16
16,000
14,000
12,000
Sales ($m)
10,000
8,000
6,000
4,000
2,000
0
04
05
06
07
08
M&A
09
Internal
10
11
Co-developed
12
13
In-licensed
14
15
16
Daiichi Sankyo operating revenue/cost analysis ($m), 2004–16
20,000
15,000
10,000
5,000
0
-5,000
-10,000
-15,000
04
05
06
07
08
09
10
11
12
13
14
15
16
Rx pharma
Other revenues
COGS
S,G&A
R&D
Other operating expense
Operating profit
Benicar/Benicar HCT sales by geography and analyst consensus ($m), 2004–16
4,000
3,500
3,000
Sales ($m)
2,500
2,000
1,500
1,000
500
0
04
05
06
US
07
5EU
08
09
JAPAN
10
11
ROW
12
13
14
15
Analyst consensus Global
16
Effient sales by geography and analyst consensus ($m), 2004–16
900
800
700
Sales ($m)
600
500
400
300
200
100
0
04
05
06
US
07
08
5EU
09
JAPAN
10
11
ROW
12
13
14
15
Analyst consensus Global
16
Zelboraf sales by geography and analyst consensus ($m), 2004–16
700
600
Sales ($m)
500
400
300
200
100
0
04
05
06
US
07
08
5EU
09
JAPAN
10
11
ROW
12
13
14
15
Analyst consensus Global
16
Memary sales by geography and analyst consensus ($m), 2004–16
450
400
350
Sales ($m)
300
250
200
150
100
50
0
04
05
06
US
07
08
5EU
09
JAPAN
10
11
ROW
12
13
14
15
Analyst consensus Global
16
quality data
expert analysis
intuitive delivery
the home of Business Intelligence
© Datamonitor