Daiichi Sankyo, the third-largest Japanese pharmaceutical group and one of the world's leading research-driven pharmaceutical companies, has established its own subsidiary in Ireland. As part of this effort, 14 employees from the cardiometabolic sales force at Merck Serono Ltd are being transferred to Daiichi Sankyo effective immediately.
The company will be called Daiichi Sankyo Ireland and be headquartered in Dublin. In addition to the osteoporosis medication Evista (Raloxifen), Daiichi Sankyoireland Ltd will market the anti-hypertensive product Cardicor (Bisoprolol), for thetreatment of cardiac insufficiency, as well as Emcor (Bisoprolol) for the treatment of hypertension and angina pectoris. Daiichi Sankyo Ireland Ltd will also sell the diabetes drug Glucophage (Metformin) as part of a co-promotion agreement with Merck Serono Ltd.
"Entering the market in Ireland is an important step in our effort to expand our European presence," said Reinhard Bauer, CEO of Daiichi Sankyo Europe. Over the middle term, the range of products is to grow considerably, particularly in terms of cardiovascular medications emerging from the company's own research pipeline, Bauer noted.
"By setting up the Irish subsidiary and integrating the personnel of Merck Serono in Ireland, we are laying the foundation for the successful marketing of our future products in this country as well," Bauer added.
This is the third such agreement reached by Daiichi Sankyo and Merck Serono this year. In Germany, the Japanese pharmaceutical group integrated Merck Pharma GmbH's sales force for primary-care physicians in August. In Turkey, Daiichi Sankyo recently took over the sales force for Merck's cardiometabolic products and the product family Concor to treat hypertension and Glucophage to treat diabetes. Although jobs are being cut throughout the pharmaceutical sector around the world, Daiichi Sankyo is significantly expanding its work force in Europe.
For Daiichi Sankyo, the agreement with Merck represents another major transaction recently undertaken in Europe and the second new affiliate set up in Europe during 2008 following the establishment of the Turkish subsidiary in March. In July 2007, the central European production site in the Bavarian city of Pfaffenhofen was expanded in a €25 million project. In February 2008, it extended its partnership with the biotech company Morphosys, located in the city of Martinsried near Munich, to develop cancer-fighting monoclonal antibodies. And in May, Daiichi Sankyo acquired U3 Pharma, another biotech company in Martinsried, in a closely followed transaction. In addition, the company is acquiring Ranbaxy, India's largest pharmaceutical manufacturer.
In taking these steps, the group is moving quickly to achieve its strategic objectives in Germany and Europe. By 2015, it also intends to be one of Europe's leading pharmaceutical companies. This strategy is designed to reverse the company's current relationship of turnover: Today, about 60 percent of consolidated turnover is generated in Japan. By 2015, 3 about 60 percent of consolidated turnover is to be achieved outside Japan as a result of corresponding growth in sales.