New figures from IMS reveal that United States giant Pfizer's Japanese sales grew by a healthy 10.7% to reach JPY575.8 billion (USD7.0 billion) in 2011, propelling it above local stalwart Takeda to become the biggest-selling drug company in Japan.
IHS Global Insight Perspective | |
Significance | Pfizer's prescription drug sales in Japan rose by 10.7% to JPY575.8 billion (USD7.0 billion) in 2011, elevating it above Takeda to become the biggest-selling drug company in the country. |
Implications | Pfizer's dynamic growth was fuelled by stellar performances from its peripheral neuropathic pain drug Lyrica (pregabalin) and its paediatric pneumococcal vaccine Prevnar (PCV13), whose respective sales shot up 643.9% to JPY31.4 billion and 224.2% to JPY31.0 billion. |
Outlook | The rise of Pfizer was symptomatic of a wider trend, in which Western drug companies have been increasing their profile in Japan and domestic companies are increasingly turning their attention towards overseas markets. |
According to Pharma Japan, Pfizer's powerful performance was achieved in the context of an overall prescription drug market that grew by 6.9% to reach JPY9,482 billion (USD116.7 billion). Within this, sales in hospitals (i.e. medical institutions with 100 or more beds) grew by 6.0% to JPY3,701 billion; sales in the GP market (i.e. medical institutions with fewer than 100 beds) grew by 6.6% to JPY2,294 billion; and sales in dispensing pharmacies and other outlets were up by 8.0% to JPY3,486 billion.
Western Multinationals Make Biggest Gains
Behind Pfizer, the next three biggest-selling drug companies were all Japanese enterprises. Takeda slipped down to second place with sales of JPY555.5 billion (+4.2%), and Daiichi Sankyo (JPY480.1 billion; +2.2%) and Mitsubishi Tanabe (JPY404.2 billion; +3.0%) held onto their previous year's rankings, in third and fourth place respectively.
Aside from Pfizer, a number of other Western multinationals also showed real dynamism. US-based Merck & Co's MSD unit jumped from eighth place to fifth after its sales grew by 15.9% to JPY399.8 billion. Meanwhile, GlaxoSmithKline (United Kingdom) climbed from 12th to ninth following a rise of 29.2% to JPY319.8 billion, and Sanofi-aventis (France) achieved 10th position with sales up by 10.6% to JPY313.4 billion.
Among Western multinationals, some of the main products driving growth included Pfizer's peripheral neuropathic pain drug Lyrica (pregabalin) and its paediatric pneumococcal vaccine Prevnar (PCV13), whose respective sales shot up 643.9% to JPY31.4 billion and 224.2% to JPY31.0 billion. Meanwhile, the star performer for MSD was its dipeptidyl peptidase-4 (DPP-4) inhibitor Januvia (sitagliptin), and GSK benefited from a stellar showing by its cervical cancer vaccine Cervarix (recombinant, adjuvant human papillomavirus).
Although a couple of Japanese companies also made double-digit gains, these were lower in the rankings: Kyowa Hakko Kirin enjoyed an increase of 10.3% to JPY220.9 billion, in 14th place, and Ono saw its sales rise by 13.6% to JPY163.6 billion, in 20th position.
Antidiabetic Category Experiences Double-Digit Growth
The strong performance by Januvia and other DPP-4 inhibitors contributed to a surge from the antidiabetics category, which climbed from seventh to sixth in the category rankings, and whose growth rate of 16.7% (to JPY383.2 billion) was higher than any other category in the top 10. Aside from Januvia, which stormed to the top of the category after its sales rocketed by 330.7% to JPY52.7 billion, the next best-selling DPP-4 inhibitor was Ono's sitagliptin-based Glactiv (JPY27.7 billion; +290.6%). Other competitors included Takeda's Nesina (alogliptin) and Novartis (Switzerland)'s Equa (vildagliptin).
Meanwhile, the renin-angiotensin system agents category maintained its position as the best-selling category overall, with sales up by 5.1% to JPY652.7 billion.
Outlook and implications
Pfizer's ascent to the top of the rankings represents a comeback for the company, given that it is the first time since 2006 that it has held this distinction. Its strong performance is a reflection of the increasing prominence of Western multinationals in Japan, which comes at a time when domestic Japanese companies are increasingly looking outward to other markets in search of growth. Signs of the rising profile of Western companies and products had previously been evident from IMS's third-quarter sales figures (see Japan: 5 December 2011: Stellar Performance in Vaccines Category Contributes to 7.7% Q3 Rise in Prescription Drug Sales in Japan).
However, despite the strong showing by Western companies and products, sales growth of 14.9% to JPY144.2 billion by Eisai (Japan)'s Alzheimer's disease drug Aricept (donepezil) ensured that it maintained its status as Japan's top-selling individual drug.