Analysis: Four Major Drugmakers Likely to Top FY07 Earnings Forecasts (Japan)
This article was originally published in PharmAsia News
Executive Summary
Earnings for Japan's top four pharmaceutical companies are already expected to exceed annual projections. This prediction is made based on surprisingly strong first quarter performances by Takeda Pharmaceutical Co., Astellas Pharma Inc., Daiichi Sankyo Co., and Eisai Co. In fact, Daiichi Sankyo has already achieved 43 percent of its forecasted pretax profit for the year, while Takeda, Astellas, and Eisai have made 33 percent, 29 percent, and 25 percent respectively. Healthy international sales, combined with a relatively weak yen, have been the major cause of the booming profit margins. Takeda's biggest overseas earner was Actos, a diabetes medication. Astellas got a boost from Prograf, which prevents organ rejection. And Eisai's success largely stemmed from Aricept, its anti-Alzheimer's drug. Even if the yen does get stronger, it is unlikely it will have much effect on the earnings of these companies. This factor leads experts to believe all four companies will probably raise their expected annual earnings after announcing figures for the first half of the year in October. (Click here for more - May Require Paid Subscription