The oncology products are 2nd line meds which means mid to low volume and low revenue. Don't forget these oncology products will need to get through FDA approval which requires clinical data to show improved survival rates and the current clinical data is questionable AT BEST. Don't hold your breath...could be several years before approval and by then other oncology meds from Big Pharma will already be entrenched on colorectal indication... Sunovion will be way too late to join the party as usual. Sunovion is way to small to play with the big boys.
Things may or may not bode well for the future of Sunovion, depending on whether the cancer products are able to be brought to market, and brought to market on time (Aptiom comes to mind!) Regardless, we will not be selling them. The company will hire from outside, per Tada's comments in the report to investors. Part of the reason things look as good as they do is that Japan has devalued the dollar. Take a look at the exchange rates on the 2013 and 2014--one calculated at about 80 yen to the dollar, vs. 100 to the dollar. The last observation, since I am one of the few remaining old timers here from before the first layoffs in 2008, is how flat sales have been for the last 7 years. Anyone else remember the "below the line" meeting. We were instructed our job was: $2.45 share/earnings, $1.4 billion in sales, and increase market share across all product line. Flat sales does not mean flat profiability, as we have less than half the reps we did back then. Next year's goal is a billion two. Remember the meeting at the Chicago MOA a couple of years ago? The speaker from Japan said the goal was not to go below a billion. Looks like they hit that goal. Much of the first quarter of Aptiom sales will be for stocking. Remember the second quarter of for Alvesco had a negative $300,000 sales, as much of that came back in returns. Interesting to see if the same thing happens there. I hope not, but it will not be good if it does.
