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.
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