TOKYO - Takeda, Japan's largest drug manufacturer by sales, made an announcement June 23 that may come as a surprise. This year, the company hopes to establish its own commercial presence in South Korea, one of Japan's closest neighbors and one of Asia's largest markets.

Takeda expects to establish a still-unnamed commercial subsidiary in Seoul by August, calling it a component of the company's 2010-2012 Mid-Range plan to have 90 percent coverage of the global pharma market. Depending on the speed of new drug approvals that Takeda initiates in-country, the company expects to have roughly 50 sales reps in the country by 2012 or 2013.

Takeda relies on licensing partnerships to brings its key products to the world's 15th-largest pharma market, according to IMS data, which projects a 10 percent growth rate in the country in the near-term.

As Takeda moves into Korea, it remains unclear what will happen to the licensing agreements currently in place for major products.

Takeda said it is "satisfied with the current relationships with licensees," but that no opportunity, including a buyback of licenses could be ruled out.

As part of a 2009 plan for global expansion, Takeda bought back the marketing rights for type 2 diabetes treatment Actos (pioglitazone) from Eli Lilly in six countries (Also see "Takeda Takes Back Actos Rights from Eli Lilly, Sets Course For Own Geographic Expansion" - Scrip, 12 April, 2009.). The company has targeted 12 countries where it wants to ramp up its presence, including Mexico, Brazil, Turkey and Canada.

Lilly, still the licensee for Actos in South Korea, said the product is "being sold steadily" in South Korea but declined to give sales details.

AstraZeneca, Takeda's ex-Japan global partner for hypertension treatment candesartan, reported annual sales of KRW 60 billion ($50.4 million) in Korea for the angiontensin II receptor antagonist. Local partner Jeil Pharmaceuticals reported KRW 35 billion ($29 million) for the proton pump inhibitor lansoprazole, which lost patent protection in the U.S. earlier this year.

Regardless of the future of licenses for current products, from August onward, Takeda expects to directly market new products in the South Korean market.

While the company is optimistic about its expansion into new countries, market access challenges remain.

A Takeda representative said that India remains a "difficult market" for the company. But Takeda is not alone in that regard; Astellas Pharma India Managing Director Teruo Yasufuku told PharmAsia News that Japanese companies have, until recently, been more hesitant than their Western counterparts to enter India due to data protection issues (Also see "Indian Companies Are Becoming More Creative, Says Astellas India Managing Director Teruo Yasufuku: An Interview With PharmAsia News" - Scrip, 21 June, 2010.).

But with the recent announcement that it would cut 10 percent of its jobs in the U.S., Takeda is clearly looking to new markets for future growth, and it is turning to its overlooked neighbors in Asia. The company expects Actos in China, in co-promotion with Pfizer, to drive growth in emerging markets (Also see "Takeda Cuts Jobs And Pushes Oncology After Patent Losses Nudge 2009 Sales Down 4.7%" - Scrip, 14 May, 2010.).

Takeda will hold its annual shareholders meeting June 25.

- Daniel Poppy (d.poppy@elsevier.com) and Peter Chang (p.chang@elsevier.com)

Takeda Takes Global Expansion Next Door To South Korea

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