Takeda Falls Most in 4 Years After Missing Forecast: Tokyo Mover

Takeda Pharmaceutical Co. (4502), Asia’s largest drugmaker, fell the most in more than four years in Tokyo trading after full-year operating profit missed its own forecast and analyst estimates.

Takeda declined as much as 9.6 percent to 4,790 yen, headed for the biggest drop since March 2009, before trading at 4,950 yen as of the mid-day trading break in Tokyo. The benchmark Topix Index advanced 2.2 percent.

Operating profit, sales minus cost of goods sold and administrative expenses, for the year ended March 31 plunged 54 percent from a year earlier to 122.5 billion yen ($1.2 billion) due to a cost increase, Takeda said yesterday. That compared with the company’s forecast of 160 billion yen made in February and the 171.3 billion yen average of 17 analysts estimates compiled by Bloomberg.

Expenses from overseas operations increased more than expected in the fourth quarter as corporate management failed to understand the spending trend by the operational side, Chief Executive Officer Yasuchika Hasegawa said in a briefing yesterday. Brokerages including Nomura Holdings Inc., Barclays Plc and Credit Suisse Group AG said the earnings will have a negative impact on the share price.

“Takeda is too loose in managing figures,” Ryoichi Urushihara, a health-care analyst at Nomura in Tokyo, said in a note to clients dated yesterday. “It was a poor earnings result.”

Operating profit this fiscal year is expected to be 140 billion yen, 38 percent lower than Takeda’s previous forecast of 225 billion yen made in May last year, on the impact of recalling its anemia treatment Omontys and competition from generic drugs, the company said yesterday.

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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