I don’t have to tell the readers of this blog that a lot of very significant changes have occurred in both the Japanese drug industry and Big Pharma companies over the last 25 years, since the founding of New York Pharma Forum (NYPF). Not surprisingly, these changes have had an effect on the organization.
Many Japanese drug industry executives were adamant 25 years ago that mergers were a Western phenomenon and would not affect the Japanese industry. “It is not the Japanese way of doing business,” we heard. I recall a meeting of New York Pharma Forum in the early ‘90s at which the guest speaker was a Ministry of Health & Welfare official from Tokyo, who told the audience not to expect the government to protect Japanese pharma companies any longer from global competition in the domestic Japanese market. He predicted that, in order to survive, there would be many mergers in the Japanese pharma industry, which, he said, was sorely in need of consolidation. A blanket of silence descended on the room.
His prediction was correct. Starting in the late ‘90s, Japanese pharma companies began to merge with each other. Several of NYPF's Japanese member companies have been at the forefront of these changes. One of the first big mergers was the combination of Nippon Roche with Chugai Pharmaceutical Co. in 2001. In 2005, four big players engaged in two head-turning mergers with the combination of Fujisawa and Yamanouchi to form Astellas Pharma Inc., and Daiichi Pharmaceutical Co. and Sankyo Co. to form Daiichi Sankyo Co., Ltd. In 2007, Mitsubishi Pharma merged with Tanabe Seiyaku to form Mitsubishi Tanabe. After a wave of domestic mergers, Japanese pharma companies began acquiring overseas companies. Takeda acquired Millennium Pharmaceuticals, followed by acquisitions by Eisai, Shionogi, Daiichi Sankyo and others.
In 1989, Eisai was headed in the U.S. by Soichi Matsuno,
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| became co-chairman of Astellas Pharma. |
one of NYPF’s founding fathers and president of the group from 1997-1999. He had a handful of employees on his staff when NYPF started, but by the time he left the U.S. aout 15 years ago, Eisai’s U.S. presence had grown exponentially. Mr. Matsuno became Deputy President of Eisai in Tokyo. Now Eisai Inc. in the U.S. has thousands of employees and almost all are Americans. With its Alzheimer’s drug Aricept, Eisai lead the way in developing and launching new drugs in the U.S. market before even introducing them in Japan.
We shouldn't underestimate the difficulties these Japanese expatriate executives had to overcome to turn their companies into global competitors. Cross-cultural business differences still exist, such as different HR and compensation systems in the U.S. and Japan. The language barrier alone is still tough for many Japanese expats. One Japanese pharmaceutical company executive told NYPF members that when he first came to the U.S., he spoke English very poorly and had a hard time understanding what was going on around him. But 
he was determined to learn the language and the culture. He obviously succeeded, since he has been very successful throughout his career and is now president of a top-10 Japanese pharma company.
The many drug industry mergers worldwide have had a big effect on New York Pharma Forum, resulting in the loss of some members. Pfizer alone absorbed two large former members, Warner-Lambert and Wyeth. In the beginning it was just the research-based pharma companies that
| Dr. Henry McKinnel, former Pfizer |
| CEO, spoke in 2001 at NYPF. |
were merging. In more recent years, however, clinical research organizations (many of which are members of NYPF) have followed suit, resulting in loss of members. However, there have also been additions to the organization. Biotech companies such as Genzyme have been active in the organization, with representatives involved as officers and board members.
I was around 25 years ago during the development of New York Pharma Forum. It's very satisfying to see the rise and success of so many people who have been New York Pharma Forum leaders, both Japanese and American. I, and a few others who were around when the organization was established and still participate in NYPF, can proudly say, "I knew them when..."
By Lucy Siegel
CEO, Bridge Global Strategies
(Secretariat for New York Pharma Forum)
