THE GRAND-PATH » Business

Astellas took over US pharmaceutical company with a strong cancer therapy product.

admin — Mon, 07 Jun 2010 22:37:36 +0000

On May 17th, 2010, “Astellas Pharma Inc.” announced that it agreed to buy “OSI Pharmaceuticals, Inc.”, the drug company in USA. The total amount of its TOB will be about US$ 4 billion. Most drug companies in Japan are facing at the year 2010 problem. Most of their bread-and-butter products are to be off-patent production within 2010 and also they have never been able to develop new drug well, so they are concerned about declines in their revenues. Astellas intends to get the present profit-making source by this TOB. OSI has the strong cancer therapy product of Tarceva (erlotinib).

Although Astellas proposed a friendly buyout offer to OSI, it has carried out a hostile takeover from this March because of the hostility of management team of OSI. It has postponed the period of TOB twice, and finally it succeeded in TOB by increasing the purchase price to US$ 57.5 from US$ 52.0 per share.

Recent TOB by Japanese pharmaceutical companies : On January, 2008, “Eisai Co., Ltd.” took over “MGI Pharma in USA” by about US$ 4.5 billion. On May, 2008, “Takeda Pharmaceutical Company Limited” took over “Millennium in USA” by about US$ 10.1 billion. On October 2008, “Shionogi & Co., Ltd.” took over “Saieru Pharma in USA” by US$ about 1.5 billion. On November 2008, “Daiichi Sankyo Limited Company” took over “Ranbaxy Laboratories in India” by about US$ 53.3 billion. And then on October 2009, “Dainippon Sumitomo Pharma Co., Ltd.” took over “Sepracor Inc. in USA” by about US$ 24.4 billion.

Rental Digital Book

admin — Mon, 31 May 2010 22:39:21 +0000

”eBook shop PAPYLESS” begins to deliver the rental digital book with the period of browse. Users can use this service via iPad, iPhone, iPod touch, smart phone and PC. Without browsing them, they can browse contents due to “MEDUSA”, which is its own delivery system of digital book.

The number of contents, i.e. comics, novel, how-to book, photo album and so on, is 6500 books and over. Users can use this service by paying some fee, which starts from Japanese Yen 105 each, for 48 hours. And also they can browse contents without the period of browse. The company has a plan to increase the number of contents to 10000 books and over within one year.

TEPCO invests in Atomic Power Station in USA.

admin — Mon, 31 May 2010 22:32:20 +0000

On May 10th, 2010, “TEPCO (Tokyo Electric Power Company)” announced to invest the project related to the additional construction of atomic power plant in Texas, USA. The total operating cost becomes around US$ 11.8 billion and the total investment amount invested by TEPCO is US$125 million.
TEPCO can obtain 9.23% of the right. TEPCO gives technological assistance and therefore sends engineers to the project. It is the first time for Japanese power companies to do such a thing. The construction of two leading-edge advanced boiling water reactors (ABMR) will be initiated by Toshiba which has adequate now-how of the construction of ABMR. The owner of this nuclear power-generating plant is NRG Energy Inc in NJ, USA, and has a plan to start its commercial service from 2016-2017 and sell the electric power for around 60 years.

Some Triangle Structural Outline

admin — Wed, 26 May 2010 22:28:56 +0000

It seems Korean makers are powerful rivals which knock down Japanese firms, i.e. Sony, Panasonic, TOYOYA and so on, while Japanese firms’ accomplishments fall into the doldrums. If we find this situation, we can find fully-different impression.

For example, let’s see the automotive parts industry. “Tsubakimoto Chain Co.” is producing the timing chain driving system, which controls opening/closing of an engine valve. Tsubakimoto accepted an order of 1 million systems per year from Hyundai Motor Company. This figure is equal to about quarter of the annual total sales amount of Hyundai. According to Tsubakimoto, the sales of Hyundai is quite good, and therefore the order will be 1.5 million systems and over. Their supply will bring forward, too. Now, Tsubakimoto export its products from Japan to Korea and it is constructing the plant there, which is expecting its completion within 2011. Tsubakimoto has a plan to export parts from Japan and assemble them in Korea after its completion. There is another company in Japan, which is the maker of fuel control and belongs to TOYOTA group. 10% of its sales amount is arising out of Korean market. Most automakers in the world are making effort to produce fuel-efficient vehicles as much as possible. And also Korean makers are active in adopting splendid parts made in Japan.

That is to say, we can find the following structural outline. Korean makers produce products by using parts made in Japan and sell them in China.

Hitachi is considering produce the neodymium magnet.

admin — Wed, 26 May 2010 22:27:57 +0000

”Hitachi Metals, Ltd.” is considering produce the neodymium magnet, which is a high-performance permanent magnet and is used for drive motor of Hybrid Vehicle, in China. The company has its basic patent and therefore has its biggest share in the world market.

Japanese makers have passed over to set up their plants in China to avoid that Chinese makers know the secret related to the magnet. On the contrary, the reason why Hitachi is considering set up its plant there is that in 2014 it is to be off-patent production in USA and so on. In China, this basic patent has never approved as basic patent, so Chinese makers have produced a lot of neodymium magnets. These magnets cannot be exported to USA and so on. However, such makers will be able to export their products to such countries after 2014. If Hitachi produces the magnet in China, it can compete with Chinese makers. Because it can decrease costs related to tax and logistics.

Japanese big makers excluding Hitachi are maintaining cautious stances about expanding to China. According to “Shin-Etsu Chemical Co., Ltd.”, which has the second biggest share in the world, it has never considered to expand there. Because it dislikes Chinese rivals know its secret. “TDK”, which has the third biggest share, has the same idea.

Warren Buffett is interested in Japan.

admin — Wed, 19 May 2010 22:10:35 +0000

On May 3rd, 2010, the newspaper story regarding Warren Buffett, who is chairman of Berkshire Hathaway, has reported in Japan. According to it, he said he would like to purchase a Japanese big corporation sometime in the future. He showed willingness to invest in Japan for real. The period of his acquisition has never fixed, i.e. 5 - 10 years later, or within 5 - 10 months. Although he has never interested in the investment against Japanese corporations because of its low profit ratio, it seems that he is interested in the investment against Asia. For an example, he invested in POSCO, Korean big steel company, and BYD, China big battery and automobile company.

MHI makes an investment to AREVA.

admin — Mon, 10 May 2010 22:05:40 +0000

On April 27th, 2010, we could find that “Mitsubishi Heavy Industries, Ltd.” is considering to make an investment to AREVA SA, French big nuclear industrial company. The amount of investment is Japanese Yen forty billion and several billion, and then the company will obtain around 2% of its stocks. Mitsubishi has developed medium-sized atomic furnace in conjunction with AREVA. Mitsubishi has an intention to decide such an investment in order to reinforce the relationship with AREVA.

Both companies have been rivals in the market of large-sized atomic furnace, so they have a plan to sell medium-sized one to developing countries, which the demand for it will increase. And also Westinghouse, daughter company of Toshiba in USA, had already succeeded in getting contract with Chinese and US companies, so they have a plan to sell it to various countries in Central & Eastern Europe, Asia, Middle East and so on.

The positive earnings, Murata

admin — Thu, 06 May 2010 08:31:06 +0000

”Murata Manufacturing Company, Ltd.” enjoys brisk sales. The company recorded year-on-year positive growth of the consolidated accounting. The net income is Japanese Yen 24.7 billion and is bigger than that of the previous year by 6.9 times. As the market of flat-screen TV and mobile phone have become huge in China and so on, the sales of electronic component, including condenser which is the main product of the company. And also the cost reduction contributed to its increased profit. The sales amount is Japanese Yen 530.8 billion, up 1% from the preceding year. Although its performance was in the red by Japanese Yen 16.2 billion, the operating profit or loss in this fiscal year returned to the black by Japanese Yen 26.7 billion. As of March 2011, the sales amount will be Japanese Yen 590 billion, up by 11%, and the business profit will be Japanese Yen 62 billion, up by 2.3 times, and then net income will Japanese Yen 44 billion, up by 78 times from the previous quarter in this fiscal year.

A smoker may be able to use the direct flight from east to west.

admin — Mon, 26 Apr 2010 22:26:11 +0000

JT (Japan Tobacco, Inc.) announced that JT releases “Zero Style Mint” of smoke-free cigarette only within Tokyo from the mid-May. The price of the set, which consists of a main unit and two cartridges, is Japanese Yen 300. The price of refill cartridge set, which contains four cartridges, is Japanese Yen 400. A smoke-free cigarette consists of the cartridge with tobacco leaf and the pipy main body. Without using fire, a smoker can enjoy its taste and flavor for half a day - a day due to frequency of usage. It doesn’t contain tar at all and has a small amount of nicotine.

They insist that the harm of second-hand smoke for children and non-smoker is the problem. It seems a smoker can enjoy it inside of airplane, which is not allowed to smoke. If so, tourists who wanted to smoke and therefore had to change planes at Chicago to go SF and Los from NY can enjoy it and make usage of direct flights from east coast to west one.

Good-by Electric Light Bulb, hello LED Bulbs.

admin — Mon, 26 Apr 2010 22:25:34 +0000

Japan’s government has requested each maker not to produce electric light bulbs. TOSHIBA stopped producing them from March 17th, 2010. It is the first company, which is one of main makers and has kept about 30% of the market share. The company steps up to produce bulb-type fluorescent lights and LED bulbs, which consume less than one-fifth the power of incandescent bulbs and also last about 10 times longer. According to the company, it will be able to reduce about 430,000 tons of carbon dioxide per year from 2008 levels.