Daiichi Sankyo Raises Profit Forecast by 11% on Smaller Tax Cost

Daiichi Sankyo Co., Japan’s second- largest drugmaker, raised its full-year profit forecast by 11 percent helped by lower tax charges at its Indian unit and asset sales.

Net income will be 50 billion yen ($645 million) in the year ending March 31, 2012, Daiichi Sankyo said in a statement to the Tokyo Stock Exchange today. The Tokyo-based company said fiscal first-quarter profit fell 24 percent to 25.3 billion yen.

Daiichi Sankyo declined 1.3 percent to 1,586 yen in Tokyo trading at 1:06 p.m. local time, the biggest fall since June 27. The benchmark Topix index shed 0.6 percent.

Daiichi Sankyo, which has a 64 percent stake in India’s Ranbaxy Laboratories Ltd. (RBXY), accounts for the Indian unit’s earnings with a lag of one quarter. Ranbaxy, India’s biggest drugmaker, is scheduled to report second-quarter profit next month.

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

To contact the editor responsible for this story: Jason Gale at j.gale@bloomberg.net

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