Daiichi Sankyo Seeks Biotechnology, Cardiovascular Takeovers
Japans third-largest drugmaker, based in Tokyo, will need takeovers to reach its goal of 1 billion euros ($1.4 billion) sales in Europe in 2011, said Reinhard Bauer, the companys head of European operations, in an interview today.
Daiichi Sankyos acquisition last year of about 600 sales people in Germany, Turkey and Ireland from Merck KGaAs Merck Serono unit is an example of a type of deal that can help the Japanese company sell its products in markets in which it doesnt have a sales force, Bauer said. Daiichi Sankyo aims to take share from Sanofi-Aventis SAs Plavix with the Efient blood thinner it developed with Eli Lilly & Co. and introduced in Germany in April. Acquisitions will help it fill regional gaps in Eastern Europe and Scandinavia, he said.
“With our existing portfolio and existing markets we can grow to a business volume on our own of 800 million euros,” Bauer said. “If we want to expand beyond that to the 1 billion- euro dimension, we would consider acquiring ourselves into new markets where were not yet present.”
Daiichi Sankyo is researching biotechnology targets in Europe similar to German biotechnology company U3 Pharma AG, which it acquired last year, and is interested in new heart-drug candidates and cancer treatments, Bauer said. Daiichi Sankyo decided against an acquisition of Switzerlands Nycomed A/S or Belgiums Solvay SA.
Structural Needs
The transaction with Merck Serono “satisfied our structural needs and this is something that Nycomed or Solvay could provide but we dont need anymore,” Bauer said. “We have looked at the development projects and the pipeline of these companies, but they do not really have a synergy with our business focus of oncology or cardiology.”
Efient, known chemically as prasugrel, is the first rival to Sanofi and Bristol-Myers Squibb Co.s Plavix, the second- biggest selling drug in the world. Plavix generated $9.45 billion in 2008 and is approved for a broader group of patients. Only Pfizer Inc.s cholesterol medicine Lipitor had more sales.
Analyst estimates of 1.5 billion euros ($2.1 million) in peak sales for Efients use with artery-opening stents “is a fair assessment for the first indication. I believe we should be more ambitious,” Bauer said.
Awaiting Decision
The two companies are waiting for a decision on the drug by the U.S. regulators. Prasugrel, twice delayed by the U.S. Food and Drug Administration, won a recommendation for approval on Feb. 3 by a panel of outside advisers to the FDA. Advisory panel decisions are typically adopted by the FDA.
Daiichi Sankyo bought U3 Pharma for 150 million euros in cash last year, gaining at least two potential cancer treatments.