Collapse of Eisai

Discussion in 'Eisai' started by Anonymous, Oct 22, 2011 at 7:33 PM.

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  1. Anonymous

    Anonymous Guest

    It is no doubt that Eisai has failed to achieve what it had hoped in December 2007 when it acquired MGI. Eisai has been falling ever since.

    I am asking everyone's help to write a piece history for Eisai: How Eisai collapses in the USA.

    Please pitch in whatever you know about this organazation. Eisai had been carried by its promotional partners in last decade; how Eisai got the delusion what it has the talents to operation on its own?


    Thank you
     

  2. Anonymous

    Anonymous Guest

    Failed business development:

    Eisai aquired Zonegran from Elan in early 2005, expanding the specialty sales force into two divions (CNS and Neurology). Zonegran's patent expired and a generic was on the market by January 2006. The company was left with too many reps in the specialty division. They combined Specialty into one sales force. Primary care maintained head count. Shortly afterwards was the Colazal co-promote debacle with Salix. Reps get trained on the product only to learn a generic has entered the market. Also in 2005, co. aquires Fragmin and expands a hospital sales force. In 2006, the co. acquires the four oncology products from Ligand. In 2007, co. moves into Woodcliff Lake, also aquires Morphotek. In early 2008, co. buys MGI for $3.9 Billion.
     
  3. Anonymous

    Anonymous Guest

    And yet the head of business development, AS, is still in his position. Once again, zero accountability on planet Eisai.
     
  4. Anonymous

    Anonymous Guest

    There is no oversight in a non-public company in the US like Eisai.

    If there were a board of directors, LC and DT would have been gone long ago.

    There is no transparency outside the building.

    What value have DT and DA delivered?
     
  5. Anonymous

    Anonymous Guest

    What is Colazal deal? never heard of that.
     
  6. Anonymous

    Anonymous Guest

  7. Anonymous

    Anonymous Guest

    Seriously? Do we hire people this stupid? Oh that’s right, of course we do. Eisai is a publically owned company and traded on the Nikkei. Attached is a link from our very own website showing the corporate structure which includes a BOD.


    http://www.eisai.com/company/cgsystem.html#p01

    http://www.eisai.com/company/governance.html

    Seriously what crappy college did you go to that you do not know whether the company you work for has a BOD or is publically traded? Look no further than this idiot as one of the many reason why Eisai sucks…stupid managers hiring stupid reps.


    With that being said DT, LC, DA are also idiots and I have no idea why they are gainfully employed at Eisai. So again stupid people hiring stupid people…
     
  8. Anonymous

    Anonymous Guest

    This is embarrassing that someone employed here did not know this. Thanks for pointing this out to the intellectually challenged.
     
  9. Anonymous

    Anonymous Guest

    Well of course there is a BOD and it's a "public" company. Since you went to one of the finest second tier schools, you also know that public companies in Japan are quite different from US public companies. I know I can count on your extraordinary intelligence and communication skills to explain to the great unwashed how ESI, as a wholly owned subsidiary nested below E of N.A. is nearly invisible to the shareholders even though it is "public".

    Wow...I'm so glad you were retained ;-). Thanks for telling off those idiots who didn't know better.

    Now put on some chap stick, and get back to work under my desk.
     
  10. Anonymous

    Anonymous Guest

    I love your honesty!
     
  11. Anonymous

    Anonymous Guest

    This post makes no sense. Japan has oversight like the SEC, it's not as different as you think.
     
  12. Anonymous

    Anonymous Guest

    The Board is hand picked by Naito. They're a rubber stamp. There is no accountability.
     
  13. Anonymous

    Anonymous Guest

    agreed
     
  14. Anonymous

    Anonymous Guest

    Eisai NA is invisible to shareholders…WHAT??? How do you figure? Page 6 of the annual report gives the financial performance of each business region. Eisai NA’s performance in illustrated throughout the report. Seriously you have no idea what you are talking about nor have you ever even read the annual report. Stop talking about things you are way out of your league on.
     
  15. Anonymous

    Anonymous Guest

    You have no idea what you are talking about. There are six outside board members from investment banks and outside companies that have voting interested not vested with Eisai. Read the annual report and stop listening to your stupid DM’s ‘opinion’ on how things work here and in Japan. Understand I am not defending the company in any way, in fact I think it is a poorly run business in NA, but the statements made here are vastly uninformed.
     
  16. Anonymous

    Anonymous Guest

    In general, your statement makes sense. However, the outside board members can't do much to help Eisai. Naito doesn't have much idea of what has been going on with Eisai USA, you think the outside board members would know? Naito didn't know how to ask the Right questions to discover the deep root of the problems in the USA. In my opinion, Naito himself is quite incompetent.
     
  17. Anonymous

    Anonymous Guest

    Ok I’m understanding your thought process here a little better and I do not mean this to be condescending but I don’t think you have a solid grasp on the responsibilities of a BOD. It is not to dictate direction and operations of the company they sit on the board for. It is to be the fiduciary guardian for the interests they represent whether that interest is internal or external. The primary interest of a sitting member of a BOD is increasing shareholder value. If that comes from exUS or US in most cases they don’t care. What you are considering a collapse of Eisai NA is not solely from a financial perspective but rather one of a cultural, morale, etc perspective which I understand. BOD’s at most companies are not concerned with that unless it is violating labor laws, etc and there could be a big financial loss to the organization, thus decrease shareholder wealth. Yes Eisai NA sales are down 9% but ROW is up and that is what a BOD in concerned with. Also NA is still profitable which still trumps a slump in sales revenue for most BOD’s. Sure if NA doesn’t right the ship than Naito will have some explaining to do and offer direction on next steps, but if the ESI NA plan is 10 years he will have that latitude. BOD’s generally do not offer direction other than vote on major financial situations like, M&A’s, selling of divisions, stock splits and buy backs, major law suits, and mass layoffs to some degree. Also most BOD’s only meet once or twice a year unless there is an emergency meeting for some critical issue or vote so again they have very little to no say in strategy, tactics or operations.

    Also I think you are off point with your Japan vs. US companies. Cleary plenty of US companies with US BOD’s have failed so being in the US and having the US’s type of oversight is no guarantee that organizations are run properly, and to that point there are plenty of poorly run companies that are profitable and there are plenty of very well run companies that are unprofitable. At the end of it all the BOD should only care about one thing and that is the increase of shareholder equity.


    I too agree that Naito is incompetent.
     
  18. Anonymous

    Anonymous Guest

    Thank you for your thoughtful and informed comment. Having said that, it is hard for me to understand how sales are down only 9% when the numbers presented at town halls and sales meeting tell a different story. Analysts comments about Eisai point to a sharp drop in Aricept RX and a downtrending Aciphex. I am sure accountants and finance guys can make the numbers show anything they choose, but 9% sounds to me like a fabricated number based on slides we see at meetings.
    I can see how the BOD would see the massive and continuous layoffs as a positive and actually reward Naito for it with a bigger bonus. Having said that Eisai NA remains a company whose best days are behind it, and will continue to exist on life support for a while.
     
  19. Anonymous

    Anonymous Guest

  20. Anonymous

    Anonymous Guest

    That is year on year so April through June 2010 versus April through June 2011 the ESI NA is net sales are down 43% in USD and profitability is down 56% in USD. What that is saying is profitable is down but it is still profitable. Also this quarter over quarter the year over year will be less.