Market Report Source

Overview

Introduction
This analysis examines the current position and future outlook for Dainippon Sumitomo in the ethical pharma sector. The profile encompasses global company strategy, portfolio and pipeline analysis and assessment of financial performance, with 1-6 year sales forecasts for key drugs. An interactive forecasting and analysis tool provides continually updated quantitative and qualitative information.

Reasons to Purchase
Benchmark Dainippon Sumitomo’s performance against key rivals in the ethical pharmaceutical sector

Evaluate the corporate impact of the merger of Dainippon and Sumitomo

Investigate what strategies are open for Dainippon Sumitomo to build growth in the face of its mature portfolio and weak pipeline

Table of Contents

TABLE OF CONTENTS

CHAPTER 1 EXECUTIVE SUMMARY

Key findings

Strategic outlook

Current positioning: competitive outlook 2004

Datamonitor’s strategic recommendations

Key issues facing Dainippon Sumitomo: 2005–10

Dainippon Sumitomo’s forecast revenue stream, 2005–10

Business development in other geographic regions

CHAPTER 2 GLOBAL COMPANY STRATEGY

Introduction to Dainippon Sumitomo

Assessment of strategic position

Strengths

Weaknesses

Opportunities

Threats

Datamonitor’s strategic recommendations

Therapeutic foci

Evolution of R&D focus

Growth strategy assessment

Partnerships/licensing

Mergers and acquisitions

CHAPTER 3 GLOBAL PORTFOLIO AND PIPELINE ANALYSIS

Therapy area focus in 2004

Evolution of therapy area focus, 2004–10

Key growth drivers and resistors of future performance, 2005–10

Dainippon Sumitomo’s cardiovascular franchise

Marketed products

R&D compounds

Cardiovascular portfolio sales forecasts and forecast revenue growth

Dainippon Sumitomo’s infectious disease franchise

Marketed products

R&D compounds

Infectious disease portfolio sales forecasts and forecast revenue growth

Dainippon Sumitomo’s CNS franchise

Marketed products

CNS R&D compounds

CNS portfolio sales forecasts and forecast revenue growth

Dainippon Sumitomo’s respiratory products

Marketed products

Respiratory R&D compounds

Respiratory portfolio sales forecasts and forecast revenue growth

Dainippon Sumitomo’s gastrointestinal franchise

Marketed products

R&D compounds

Gastrointestinal portfolio sales forecasts and forecast revenue growth

Dainippon Sumitomo’s other products

Marketed products

R&D compounds

Other products sales forecasts and forecast revenue growth

CHAPTER 4 CORPORATE DEVELOPMENT

Dainippon’s financial position, 2003–04

Revenue growth

Historical assessment of Dainippon’s profitability, 2000–04

Cost structure

Liquidity, 2000–04

Sumitomo’s financial position, 2003–04

Revenue growth

Historical assessment of Sumitomo’s profitability, 2000–04

Cost structure

Liquidity, 2000–04

2004 operating cost ratio benchmarking

Business model clustering according to 2004 cost ratios

CHAPTER 5 APPENDIX: SUPPORTING DATA

Financial data

Exchange rates

Methodology for therapy area forecasting

LIST OF TABLES

Table 1: Dainippon Sumitomo’s major deals, 2004–05

Table 2: DNS’s co-marketed/co-promoted drug alliances in Japan, 2004

Table 3: Breakdown of Dainippon Sumitomo’s ethical sales by therapy area, 2003–04

Table 4: Breakdown of Dainippon Sumitomo’s ethical sales by therapy area, 2004–10

Table 5: Dainippon Sumitomo’s marketed cardiovascular portfolio

Table 6: Dainippon Sumitomo’s current cardiovascular R&D pipeline

Table 7: Forecast sales for Dainippon Sumitomo’s cardiovascular portfolio, 2005–10

Table 8: Dainippon Sumitomo’s marketed infectious disease portfolio

Table 9: Dainippon Sumitomo’s current infectious disease R&D pipeline

Table 10: Forecast sales for Dainippon Sumitomo’s infectious disease portfolio, 2005–10

Table 11: Dainippon Sumitomo’s marketed CNS portfolio

Table 12: Dainippon Sumitomo’s current CNS R&D pipeline

Table 13: Forecast sales for Dainippon Sumitomo’s CNS portfolio, 2005–10

Table 14: Dainippon Sumitomo’s marketed respiratory portfolio

Table 15: Forecast sales for Dainippon Sumitomo’s respiratory portfolio, 2005–10

Table 16: Dainippon Sumitomo’s marketed gastrointestinal portfolio

Table 17: Gastroprokinetics market in Pacific Rim ($m), 2003–04

Table 18: Forecast sales for Dainippon Sumitomo’s gastrointestinal portfolio, 2005–10

Table 19: Dainippon Sumitomo’s ‘other’ marketed products

Table 20: Dainippon Sumitomo’s current other R&D products

Table 21: Forecast sales for DNS’s ‘other’ portfolio, 2004–10

Table 22: Dainippon’s operating costs, 2003–04

Table 23: Sumitomo’s sales by division, 2003–04

Table 24: Sumitomo’s operating costs, 2003–04

Table 25: Exchange rates*, 2004

LIST OF FIGURES

Figure 1: Assessment of Dainippon Sumitomo’s strategic position, 2005

Figure 2: Competitive positioning of Dainippon Sumitomo within the pharmaceutical market, 2004

Figure 3: Generic risk across Dainippon Sumitomo’s franchises, 2005–10

Figure 4: Forecast sales for DNS’s major therapy areas, 2005–10

Figure 5: Development of DNS’s therapeutic strategy, 2004–10

Figure 6: Dainippon Sumitomo’s business development by therapy area

Figure 7: DNS’s breakdown of corporate deals against the industry trend between January 2004 and May 2005

Figure 8: Dainippon Sumitomo’s ethical sales breakdown, 2004–10

Figure 9: Dainippon Sumitomo’s growth drivers and resistors, 2005–10

Figure 10: Dainippon’s profitability stream, 2000–04

Figure 11: Dainippon’s liquid assets versus total liabilities, 2000–04

Figure 12: Sumitomo’s profitability stream, 2000–04

Figure 13: Sumitomo’s liquid assets versus total liabilities,2000–04

Figure 14: R&D and S,G&A spend and COGS as a proportion of sales, 2004