Takeda share ratings unaffected by restructuring

The share ratings for Japanese pharmaceutical company will not be affected by the company’s new management plan, according to investment analysts Standard and Poor.

Last week the company said it intends to implement a five-year management plan to enhance its in-house research and development pipeline and maintain three main areas of marketing: the US, Europe and Japan. It added that intends to begin share-buybacks to improve the financial efficiency of the company and improve dividends to its shareholders.

A press statement from Standard and Poor read: “The environment for drug makers is severe. The Japanese government enacted continued price reductions on prescription drugs in April 2006, and growth in the medical supplies market in the US is slowing.”

It said that although there was concern regarding patent expiries in 2009 in the US for its core drugs, the company has taken steps to improve its product pipeline. It concluded that “the effect on Takeda’s credit quality is expected to be minimal given its extremely strong financial profile and conservative financial policy.”

Takeda’s financial results showed a better-than-expected annual profit, thanks largely to the sales of its diabetes and blood pressure drugs, although it stated that it did not expect large amounts of growth for the 2006 financial year.

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