Daiichi Sankyo Co., Japan’s second-largest drugmaker, raised its full-year profit forecast by 11 percent because of lower tax charges in India and asset sales.
Net income will be 50 billion yen ($645 million), instead of 45 billion yen, in the year ending March 2012, Daiichi Sankyo said in a statement today. The drugmaker, which had profit of 70.1 billion yen last fiscal year, said earnings would be helped by smaller tax expenses at Ranbaxy Laboratories Ltd. in India and a gain on sales of underutilized real estate.
Daiichi Sankyo kept its revenue forecast at 970 billion yen, saying it intends to offset a drop in sales from a stronger yen by expanding its mainstay and new products. Fiscal first-quarter profit fell 24 percent to 25.3 billion yen, it said today.
Daiichi Sankyo declined 0.8 percent to 1,593 yen at the 3 p.m. close of Tokyo trading, tracking the dip in the benchmark Topix index.
Daiichi Sankyo, which has a 64 percent stake in Ranbaxy, accounts for the unit’s earnings with a lag of one quarter. Ranbaxy, India’s biggest drugmaker, is scheduled to report second-quarter profit next month.