Introduction
Over the past decade, major Japanese pharmaceutical companies have undergone significant evolution amidst global competition. Daiichi Sankyo, Takeda, Otsuka, and Astellas have each leveraged their strengths to enhance competitiveness through in-house innovation, adoption of new modalities, overseas expansion, and targeted M&A strategies.
Daiichi Sankyo: Transforming Global Oncology Through ADC
Daiichi Sankyo became a game-changer in oncology with the development and launch of the antibody-drug conjugate (ADC) Enhertu. Starting with a strategic alliance with AstraZeneca and later partnering with Merck, the company demonstrated the power of a co-commercialization model built on proprietary technology.
- Enhertu became a blockbuster through label expansion to HER2-low breast cancer.
- The partnership model enabled shared commercialization, clinical trials, and regulatory pathways while maximizing profits.
- Multiple ADCs in the pipeline suggest long-term revenue potential.
Daiichi Sankyo shifted its strategy from product sales to revenue based on licensing and co-commercialization — carving out a new path in pharmaceutical business from Japan.
Takeda: Stabilizing Through Entyvio and Strategic Acquisitions
Takeda’s acquisition of Shire initially raised concerns about its financial burden. However, Entyvio — obtained via the earlier Millennium acquisition — became a core growth driver in ulcerative colitis and Crohn’s disease, anchoring Takeda’s global profitability.
- Entyvio grew into a $10+ billion revenue product.
- Millennium’s research culture influenced Takeda’s global R&D strategy.
- Recent selective acquisitions, such as Nimbus (immunology), reflect a focused approach.
The company has effectively balanced disease-focused strategy, modality diversification, and its transformation into a global biopharma leader.
Otsuka: Deepening CNS Focus and External Partnerships
Otsuka maintained strength in CNS (central nervous system) disorders while aggressively expanding partnerships to explore new therapeutic modalities.
- Successfully extended product lifecycles with long-acting injectables like Abilify Maintena.
- Entered rare diseases, genome editing, and stem cell therapies via external collaborations.
- Continued diversification to mitigate CNS concentration risk and embrace cutting-edge technologies.
The company now faces the dual challenge of developing next-gen CNS pipelines and embracing emerging modalities.
Astellas: Strategic M&A and a Turning Point
Astellas pursued aggressive biotech acquisitions over the decade, expanding into regenerative medicine, ophthalmology, and gene therapy through high-profile deals such as Iveric Bio and Audentes.
- The Audentes deal helped build gene therapy infrastructure in technology and manufacturing.
- Iveric strengthened its ophthalmology portfolio — consolidating and expanding in parallel.
- These investments have entered a “validation phase,” where productization outcomes are under scrutiny.
Investors are closely watching how these deals translate into near- and mid-term business performance.
Global Expansion and Growth Markets
Japan’s domestic market is limited in size and facing headwinds from pricing policies. Future growth will depend on strategic expansion into Global South regions such as APAC, the Middle East & Africa, and Latin America.
- Astellas has strengthened operations in APAC and ASEAN regions.
- Daiichi Sankyo is expanding its presence in Latin America and the Middle East.
- Takeda and Otsuka already have strong Southeast Asian operations and room for further growth.
In oncology, infectious diseases, and immunology, success will hinge on dosage form optimization, cost design, and alignment with local healthcare infrastructure.
Author’s Perspective
Japanese pharma has forged its own global path by focusing on core strengths and aligning technologies with therapeutic areas. Daiichi Sankyo’s ADC success, Takeda’s Entyvio-driven strategy, Otsuka’s CNS leadership, and Astellas’s commitment to gene and regenerative therapies exemplify “Japan-originated global strategies.” Going forward, the challenges will be deeper penetration into emerging markets, in-house deployment of frontier technologies like mRNA and AI drug discovery, and building ecosystems for sustained value creation.
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