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Press releases > Europe > Archive 2009 > High growth in sales and employee numbers

Press releases

Substantial increase in sales and employee numbers at DAIICHI SANKYO EUROPE in 2008 // High growth is also planned for the current year

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  • Sales increase by about 23 percent to 490 million euros
  • Operating profit slightly over plan
  • Employee numbers increase by 37 percent to 2,436
  • Forecast for current financial year: revenue of 592 million euros; operating profit significantly higher

 

Frankfurt – 9. June 2009 - The European subsidiary of the third largest Japanese pharmaceutical company DAIICHI SANKYO increased its consolidated sales in the 2008/2009 financial year (March 31) compared to the previous year by more than 23 percent to 490 million euros. Consolidated operating profit decreased due to high pre-planned investments in new products but ended slightly over plan. DAIICHI SANKYO has in Europe ambitious growth targets for the current financial year. Revenue should increase by more than 20 percent to 592 million euros, while the operating profit will increase above average. DAIICHI SANKYO operates in twelve European countries. The largest markets are Germany, France, Spain and Italy.

Reinhard Bauer, Executive Chairman of DAIICHI SANKYO EUROPE said at a press conference in Frankfurt that "our growth targets reflect our confidence that existing products like the mega-seller OLMETEC® and our new medicines such as SEVIKAR® and the thrombosis inhibitor EFIENT® have won the trust of doctors and patients."

 

This is expected to make a positive impact in the coming years as well. The pharmaceutical company aims to double its sales to more than a billion euros in Europe through organic growth and acquisitions by the end of the 2011 financial year. At a global level, DAIICHI SANKYO - with current sales of almost 5.9 billion euros and 16,237 (including Ranbaxy: 28,895) employees among the 20 largest pharmaceutical groups in the world right now - should reach sales of around ten billion euros by 2015. Over 60 percent of the revenue is expected to be generated from outside of Japan by this time. Europe will play a significant role to this end. Currently, around 60 percent of sales come from the domestic Japanese market.

Strong revenue growth in Europe is accompanied by a substantial increase in the number of employees, which rose by more than 37 percent to 2,436 in the last financial year. A significant part of this growth can be attributed to the transfer of Merck Serono sales team members in several European countries. An increase up to about 2,600 employees is planned for the current year.

The new thrombosis inhibitor EFIENT® is one of the products that the company is banking on. It was brought to market in Germany and Great Britain at the start of April, and will gradually be launched throughout Europe. "EFIENT® displayed a clear medical advantage over the current standard treatment Plavix during a comprehensive clinical study on 13,600 patients," said Bauer. EFIENT® is marketed by DAIICHI SANKYO in collaboration with Eli Lilly in the US.

SEVIKAR®, the combination compound against high blood pressure, was introduced successfully at the beginning of the year in Germany, Holland and Switzerland. "With SEVIKAR®, our market share has risen to 20 percent in Germany within three months. The product has clearly exceeded our expectations," comments Bauer. SEVIKAR® like EFIENT® will be gradually introduced throughout Europe.

 

The OLMETEC® blood pressure medicine has been the company’s leading product since it was introduced in 2002. In the previous financial year, its active ingredient Olmesartan generated revenue of 1.47 billion euros worldwide for DAIICHI SANKYO. "In Europe, our active ingredient Olmesartan contributes 600 million euros to our annual revenue," informs Bauer. "And we believe there is a lot more to come. Revenue from this active ingredient is currently witnessing an annual growth rate of 30 percent in Europe." Bauer announced that the compound will probably reach its highest turnover only in 2016.

The research and development (R&D) of DAIICHI SANKYO has recently been called the "best cardiovascular pipeline" by the esteemed US magazine "R&D Directors". Over the past financial year the group invested 1.28 billion euros in R&D. This is equivalent to about 22 percent of sales. Therefore the company is clearly above the average spent by its competitors. In the current year, the allocation for research and development is expected to increase to 1.35 billion euros.

Europe-CEO Bauer has high expectations for the Factor Xa inhibitor Edoxaban. It is currently in the clinical phase III. Factor Xa is a key enzyme which controls blood clotting. In patients with atrial fibrillation, the blood clots can build in the upper heart chamber and clog the arteries. "We are planning to complete phase III with the indication of atrial fibrillation in mid-2012," said Bauer. There are 4.5 million people suffering from atrial fibrillation in Europe alone. Patients suffering from this ailment have a five times higher risk of stroke.

DAIICHI SANKYO also has a promising pipeline in the oncology department. Currently, there are four active ingredients in clinical studies, three of them in phase II. Another active ingredient is about to be put to clinical testing. Europe Chief Bauer expects a pharmaceutical product from this group to be launched in 2012/2013.

 

 

1 Exchange ratio Yen – Euro: 143,5

2 ACC/AHA/ESC 2006 Guidelines for the Management of Patients with Atrial Fibrillation. Europace 2006; 8:651-745
Hylek AM, et al. N Engl J Med. 2003; 349:1019-1026

CONTACT

 

Thorsten Schüller

Media Relations
Tel +49 (0)89/78 08-657
Mobile: +49 (0)172/82 45-730
thorsten.schueller@daiichi-sankyo.eu

 

Dr. Thomas Portz

Corporate Communications

Tel +49 (0)89/78 08-468

Mobile: +49 (0)172/84 15-904

thomas.portz@daiichi-sankyo.eu


Forward-looking statements
This press release contains forward-looking statements and information about future developments in the sector, and the legal and business conditions of DAIICHI SANKYO EUROPE GmbH. Such forward-looking statements are uncertain and are subject at all times to the risks of change, particularly to the usual risks faced by a global pharmaceutical company, including the impact of the prices for products and raw materials, medication safety, changes in exchange rates, government regulations, employee relations, taxes, political instability and terrorism as well as the results of independent demands and governmental inquiries that affect the affairs of the company. All forward-looking statements contained in this release hold true as of the date of publication. They do not represent any guarantee of future performance. Actual events and developments could differ materially from the forward-looking statements that are explicitly expressed or implied in these statements. DAIICHI SANKYO EUROPE GmbH assumes no responsibility for the updating of such forward-looking statements about future developments of the sector, legal and business conditions and the company.

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