Takeda Pharmaceutical Co., Asia’s biggest drugmaker, fell the most in 14 months in Tokyo trading after forecasting a 40 percent drop in operating profit because of acquisition costs and higher research expenses.
Takeda plunged 4.3 percent to 3,255 yen as of 11:01 a.m., the most since March 2011. The benchmark Topix Index advanced 0.3 percent. Operating profit, or sales minus the cost of goods sold and administrative expenses, will be 160 billion yen ($2 billion) in the year ending March 2013, the Osaka, Japan-based company said after markets closed on May 11.
Operating profit was expected to reach 226 billion yen in the current fiscal year, according to the average of 16 analyst estimates compiled by Bloomberg before Takeda’s announcement.
“The guidance was a major negative surprise,” said Fumiyoshi Sakai and Toshiyuki Tateno, equities analysts at Credit Suisse Group AG in Tokyo, in a report to clients today. “We had never anticipated that operating profit would fall through the 200 billion yen mark.”
Takeda announced $13 billion of acquisitions in the past year, agreeing to buy Nycomed and URL Pharma Inc., to boost sales in emerging markets and access new treatments to buffer a decline in sales after its best-selling Actos medicine. The diabetes treatment, which loses patent protection in three months, posted a 24 percent drop in sales to 296.2 billion yen in the year ended March 31, accounting for 20 percent of Takeda’s total revenue.
Net income for the current year will jump 25 percent to 155 billion yen, the company said. Profit will be helped by a tax refund and government funds for an influenza drug plant. Takeda plans to sell 100 billion yen of stock in other companies in the next two years to raise cash, it said.