- 著者
-
金子 秀
- 出版者
- 埼玉大学経済学会
- 雑誌
- 社会科学論集 = SHAKAIKAGAKU-RONSHU (The Social Science Review) (ISSN:05597056)
- 巻号頁・発行日
- vol.140, pp.61-86, 2013
The Japanese government suggests that the health industry is a growing industry.In particular, pharmaceutical and medical equipment industries are significant sectors of the health industry.The author agrees, but can Japanese pharmaceutical companies compete? This paper looks at two companies (Takeda Pharmaceutical Co., Ltd. and Chugai Pharmaceutical Co., Ltd.) and examines their profitability between 2004 and 2011. The paper focuses on management capital which is a value driver of total capital. The findings are as follows.Takeda is based on small molecule drugs which are not related to unmet medical needs. As a result, the Rate of Return on Assets (ROA) for Takeda is in an alarming decline.On the other hand, Chugai is based on big molecule drugs which are related to unmet medical needs. Chugai is under the control of F. Hoffman-La Roche Ltd., and it introduces bio drugs. Therefore, the ROA for Chugai has been constant for 8 years.Why is the Takeda ROA in decline? This paper researches the factor of profitability (profitability analysis).In Takeda, both the ratio of profit to net sales and the rate of management capital turnover are in decline. Takeda has not developed new innovative drugs. In the case of Chugai, not only the ratio of profit to net sales but also the rate of management capital turnover are generally constant because Chugai introduces bio drugs through the Roche group.In the future, the success of the two companies depends on their R&D capability to develop innovative drugs.