Takeda Chemical Industries Ltd.: Lessons from a Japanese Pharma Major|Business Strategy|Case Study|Case Studies

Takeda Chemical Industries Ltd.: Lessons from a Japanese Pharma Major

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Case Details:

Case Code : BSTR074
Case Length : 20 Pages
Period : 2003
Organization : Takeda Chemical Ltd.
Pub Date : 2003
Teaching Note :Not Available
Countries : Japan
Industry : Automobile

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Business Growth and Overseas Expansion

During the 1950s, Japan did not have a product patent system which meant that companies could manufacture and sell any drug discovered by any company. All they had to do was to find out a new way of producing the drug and then manufacture it for commercial use (Refer Exhibit II for a note on the Japanese pharmaceutical industry).

Like most of the pharmaceutical companies, Takeda also relied mostly on manufacturing and selling drugs discovered by other companies (mostly from the US and Europe) or licensing foreign technology. Takeda showed more interest in development rather than on discovery...

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1990-2000: A Decade of Growth

Takeda achieved most of its success and growth during the 1990s.

Some of the factors behind this were having a broad product portfolio, a strong R&D program spread across various therapeutic areas and a good program of physician detailing (the company's medical representatives marketing and selling their products to physicians) in the country.

Takeda divided the drugs it manufactured into two segments: ethical drugs and other products. Unlike the other products segment, ethical drugs were manufactured and sold under different therapeutic categories (Refer Exhibit III for various drugs and their therapeutic categories). Takeda launched a series of drugs during the early-1990s that went on to become best sellers...

Excerpts Contd... >>

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