Takeda Pharmaceutical Company, Becoming a Global Company (A)

In 2007, Takeda was a leading Japanese pharmaceutical company with sales primarily in Japan and the U.S. Although Takeda ranked around 15th in global sales, the pharmaceutical market had been shifting due to major industry consolidation. Yasuchika Hasegawa, the president of Takeda, was concerned about the future of the company. To counter the shrinking Japanese pharmaceutical market, Takeda had expanded its business to overseas markets. But Takeda’s attempts to become a global company had been criticized as slow and not sufficiently aggressive. One reason for this was Takeda’s risk-averse corporate culture. Worse, Takeda’s R&D pipeline was shrinking, and patents on several of its major products were about to expire—which would inevitably lead to a decline in profits as generics entered the market. This case explores Hasegawa’s plan to transform Takeda into a global pharmaceutical company in a rapidly changing market. It covers Takeda’s history, industry trends, and Hasegawa’s acquisition strategies.