May 13 (Bloomberg) -- Daiichi Sankyo Co., Japan's third- largest drugmaker, had a 44 percent jump in quarterly net income, led by higher sales of its blood pressure treatments. The company predicts profit will drop this year.

Net income rose to 1.24 billion yen ($12 million) in the three months ended March 31, from 856 million yen a year earlier, when profit was affected by lower drug prices and payments made to workers taking early retirement. The profit was calculated by subtracting nine-month figures from the full-year results announced today by the Tokyo-based company.

Daiichi Sankyo is counting on drugs in development for future growth, while its three biggest Japanese competitors have made acquisitions to buffer sales declines when their best- selling drugs lose patent protection within three years. The company's prasugrel blood-thinner in February won a six-month priority review by U.S. regulators, while last year its hypertension drug got U.S. approval for use as a combined therapy.

Shares of Daiichi Sankyo, which makes Benicar blood pressure pills, fell as much as 6.5 percent to 2,670 yen after the earnings were announced at 1 p.m. They traded 5.8 percent lower as of 1:36 p.m. on the Tokyo Stock Exchange.

For the year ended March 31, net income was 97.7 billion yen, up from 78.5 billion yen a year earlier, according to Daiichi Sankyo's statement, which was filed to the exchange. Sales fell 5.3 percent to 880.1 billion yen.

Profit is expected to fall 18 percent to 80 billion yen this business year on government price cuts on drugs, U.S. investments and higher R&D costs.

To contact the reporter on this story: Kanoko Matsuyama in Tokyo at at kmatsuyama2@bloomberg.net

Last Updated: May 13, 2008 00:58 EDT