Eisai plans to double profit in six years

Japan-based Eisai announced that it intends to double its profits within the next five years, as it established plans to neutralise unwanted takeover bids.

It forecast, within the 5th Mid-Term Strategic Plan, to generate revenues of 1 trillion yen and an operating income of 200 billion yen (?9.8 billion). Eisai reported operating profits of 78.2 billion yen for the 2006 financial year ending March 31st.

The strategic plan also set out the company’s outlook for years up to 2011. Eisai said it wanted to boost its ability to select drug candidates within US and European research labs, and will form the Eisai Oncology Unit in the United States to consolidate drug discovery with research and marketing.

In a separate development, Eisai published details of moves to fend off hostile takeover bids.

New shareholders which purchase 15 per cent of the company’s stock will be referred to an “independent committee of outside directors”, which would decide whether the bid undermines Eisai’s corporate value. If it does, all shareholders with the exception of the acquirer will be allowed to buy new stock.

Reuters reported that Tadashi Kurachi, an Eisai director, denied the move was designed to stop hostile acquisitions: “The policy sets a procedure to be followed when an acquisition of a large block of our shares is planned to secure sufficient time and information for shareholders. This is not to protect ourselves.”

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