Daiichi Sankyo Drops After Lowering Sales Forecast by 4.1% on Stronger Yen
Revenue will decline 3.9 percent to 930 billion yen ($11.7 billion) in the year ending March 2012, below a July forecast of 970 billion yen, Daiichi Sankyo said in a statement. First-half profit fell 29 percent to 37 billion yen, missing the 40.8 billion yen average of three estimates compiled by Bloomberg.
Daiichi Sankyo, which began selling the Memary Alzheimer’s disease drug this year, expects cost-cuts to buoy operating income, now pegged at 100 billion yen for the year, compared with the 90 billion yen previously forecast. Its 50 billion yen profit forecast was unchanged partly because of foreign exchange losses at its Indian unit. The Tokyo-based company expects the Japanese currency to average 75 per dollar and 105 per euro.
“Holding the view that the trend of yen appreciation will be prolonged, we have changed the assumed exchange rates for the third quarter onwards,” Daiichi Sankyo said.
Daiichi Sankyo ended trading down 55 yen, or 3.5 percent, at 1,536 yen, the biggest one-day slide since Aug. 5. The benchmark Topix index declined 1 percent. The stock has dropped 14 percent this year.
First-half sales decreased 8.6 percent to 456 billion yen.
Daiichi Sankyo, which has a 64 percent stake in India’s Ranbaxy Laboratories Ltd. (RBXY), accounts for the Indian unit earnings with a delay of one quarter. Ranbaxy, India’s biggest drugmaker, is scheduled to report second-quarter earnings on Nov. 9.
“We expect Ranbaxy to incur foreign exchange loss following a recent depreciation of the Indian rupee against the U.S. dollar,” the Japanese drugmaker said.
The forecast announced today doesn’t include the revenue expected from a generic version of Pfizer Inc.’s cholesterol- lowering pill Lipitor, also known as atorvastatin, Manabu Sakai, an executive director at Daiichi Sankyo, said today.
“We will make an appropriate disclosure as soon as we know more,” Sakai told reporters and analysts in a conference call.
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