Overseas companies hold growing stake in Japanese pharma
As at March 31, 2004, the proportion of shares held by overseas enterprises in the five largest Japanese pharmaceutical companies exceeded 30%.
As at March 31, 2004, the proportion of shares held by overseas enterprises in the five largest Japanese pharmaceutical companies exceeded 30%.
Each of the domestic companies has retained earnings equal to 5-10 years of net profit, and overseas investors are believed to have taken notice of those ample funds. Generally, overseas institutional investors keep a close eye on a firm's management and demand that retained earnings, which are not invested for the firm's growth, be distributed to shareholders as dividends.
Market leader Takeda Chemical Industries's ratio of overseas share ownership rose 6 percentage points to 38%, while Yamanouchi Pharmaceutical has a 4 percentage point increase to 41%. The other three firms, whose ratios were below 30%, had increases of about 6% each. Sankyo's ratio rose to 34%, Eisai to 35% and Fujisawa Pharmaceutical to 32%.
The investment arm of UK financial services firm Barclays Global Investors group increased its stake in Sankyo to 5%, and US investment management firm Wellington Management raised its holding in Eisai to 8%.