Introduction
 
This analysis examines the current position and future outlook for Daiichi in the ethical pharmaceutical sector. The profile encompasses global company strategy, portfolio and pipeline analysis and assessment of financial performance, with 1-7 year sales forecasts for key drugs. An interactive forecasting and analysis tool provides continually updated quantitative and qualitative information.
 

 
Reasons to Purchase
 
Understand how the proposed merger with Sankyo will impact Daiichi's operations in the future
 
Learn how Daiichi's sales have been impacted by economic conditions in the Japanese market and increasing competition from foreign companies
 
Benchmark Daiichi's performance against key rivals in the ethical pharmaceutical sector

TABLE OF CONTENTS
 
CHAPTER 1 EXECUTIVE SUMMARY 4
 
Key findings 4
 
Current positioning: competitive outlook 2003 5
 
Future performance: growth drivers and resistors 2003–10 6
 
Evolution in therapeutic focus: 2003–10 8
 
Key issues facing Daiichi: 2002–10 9
 
Strategic outlook 11
 
CHAPTER 2 GLOBAL COMPANY STRATEGY 17
 
Introduction to Daiichi Pharmaceutical 18
 
Assessment of strategic position 18
 
Strengths 18
 
Weaknesses 19
 
Opportunities 20
 
Threats 21
 
Therapeutic foci 22
 
R&D productivity 25
 
Development opportunities 25
 
Organic growth 26
 
Partnerships/licensing 27
 
Mergers and acquisitions 28
 
Geographical expansion 33
 
Implications of financial position 36
 
CHAPTER 3 GLOBAL PORTFOLIO AND PIPELINE ANALYSIS 38
 
Therapy area focus in 2003 39
 
Business development by therapy area 40
 
Forecast revenue stream, 2004–10 42
 
Therapy area forecasts to 2010 42
 
Infectious disease franchise 44
 
Marketed products 44
 
R&D compounds 48
 
Infectious disease portfolio sales forecasts and forecast revenue growth 50
 
Cardiovascular franchise 51
 
Marketed products 51
 
R&D compounds 56
 
Cardiovascular portfolio sales forecasts and forecast revenue growth 60
 
Other products 61
 
Marketed products 62
 
R&D compounds 67
 
Other products sales forecasts and forecast revenue growth 72
 
CHAPTER 4 CORPORATE DEVELOPMENT 73
 
Financial position, 2002 - 2003 74
 
Financial position, 2002 - 2003 74
 
Profitability, 1999-2003 74
 
Revenue growth 74
 
Cost structure 76
 
Profitabilty 77
 
Liquidity, 1999–2003 78
 
2003 performance benchmarking 79
 
Business model clustering according to 2003 cost ratios 79
 
2003 growth and investment momentum 80
 
Key events shaping corporate activity, 1999–2003 81
 
Merger and acquisition activity 81
 
Corporate alliances and deals 82
 
Regulatory affairs 83
 
Other business development and news 84
 
CHAPTER 5 APPENDIX : SUPPORTING DATA 85
 
Financial data 85
 
Exchange rates 85
 
Methodology for therapy area forecasting 86
 

 
LIST OF TABLES
 
Table 1: Daiichi’s regional sales, 2002-03 33
 
Table 2: US forecast sales of key marketed products in the US, 2003-10 35
 
Table 3: Breakdown of Daiichi’s ethical sales by therapy area 2002-03 39
 
Table 4: Forecast sales for Daiichi’s major therapy areas, 2003-10 42
 
Table 5: Daiichi’s marketed infectious disease franchise, 2003 44
 
Table 6: Daiichi’s infectious disease R&D pipeline, 2005 48
 
Table 7: Forecast sales for Daiichi’s infectious disease portfolio, 2003-10 50
 
Table 8: Daiichi’s marketed Cardiovascular franchise, 2003 51
 
Table 9: Daiichi’s cardiovascular R&D pipeline, 2005 56
 
Table 10: Forecasts of sales for Daiichi’s cardiovascular portfolio, 2003-10 60
 
Table 11: Daiichi’s other marketed products 62
 
Table 12: Daiichi’s other R&D products, 2005 67
 
Table 13: Forecast sales of Daiichi’s other products portfolio, 2004-10 72
 
Table 14: Daiichi’s revenues by division, 2003 75
 
Table 15: Daiichi’s expenses and incomes 2002-03 76
 
Table 16: Summary of Daiichi’s historical M&A activity, 2003-04 81
 
Table 17: Summary of Daiichi’s historical agreements, 2003-04 82
 
Table 18: Exchange rates, 2003 85
 

 
LIST OF FIGURES
 
Figure 1: Competitive positioning of Daiichi within the pharmaceutical market, 2003 5
 
Figure 2: Daiichi’s growth drivers and resistors, 2003–10 6
 
Figure 3: Evolution of therapeutic focus, 2003-10 8
 
Figure 4: Generic risk, 2002?10 9
 
Figure 5: Assessment of Daiichi’s strategic position, 2003 11
 
Figure 6: Development of Daiichi’s therapeutic strategy, 2003-10 24
 
Figure 7: Breakdown of Daiichi’s sales by region, 2002-03 34
 
Figure 8: Daiichi’s ethical sales by therapy area, 2003 40
 
Figure 9: Daiichi’s business development by therapy area 41
 
Figure 10: Forecast sales for Daiichi’s major therapy areas, 2003-10 43
 
Figure 11: Daiichi’s liquid assets versus total liabilities, 1999-2003 78
 
Figure 12: R&D and S.G & A spend and COGS as a proportion of sales, 2003 79
 
Figure 13: Benchmarking of financial strength, 2003 80