With Approval For Dengue Vaccine, Takeda May Find It Challenging To Compete Bigger Rivals: Report

  • Last week, Takeda Pharmaceutical Co Ltd's TAK dengue vaccine, Qdenga, was approved in Indonesia for individuals six to 45 years of age.
  • Qdenga is the only dengue vaccine approved in Indonesia for use in individuals regardless of previous dengue exposure and without needing pre-vaccination testing.
  • The Financial Times writes that the approval for Takeda's dengue fever vaccine in Indonesia marks a significant step toward the company's goal of creating a global vaccine business that would compete with larger rivals such as GSK Plc GSKSanofi SA SNY, and Merck & Co Inc MRK.
  • Gary Dubin, president of Takeda's global vaccine business, said the vaccine could generate up to $1.6 billion in annual sales.
  • As per analysts, Takeda may face a challenge in delivering on its decade-old strategy to compete with more established international rivals in the global vaccine market. 
  • "Vaccines are a very tough business because you have well-established incumbents such as GSK, Pfizer, Sanofi, and the barriers to entry are high," said Roger Song, an analyst at Jefferies.
  • Citigroup analyst says that Takeda follows a step-by-step approach on vaccines to avoid significant risks to invest aggressively in everything.
  • Price Action: TAK shares are up 0.36% at $13.82 on the last check Tuesday.
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