Takeda, the Japanese pharmaceutical company, was trading at a very low valuation due to fears about US patent expiry over its diabetes drug Actos and its anti-ulcer drug Prevacid in 2011 and 2009 respectively. The price fell to such an extent that the cash-on-hand represented 40% of the company's market capitalisation, with expected profit over the next five years (taking account of patent expiry) representing a further 32%. This meant that the remaining business was valued at a level that implied a 10% annual decline in cash flows - an inviting entry point.
| Sedol |
Type |
Price |
Date |
| 6870445 |
Buy |
JPY 5094.57 |
28/03/2008 | |
