Kyowa Hakko announces 32.1% sales increase

Kyowa Hakko has published its financial results for the first quarter of the 2008 fiscal year.

The company reported a 32.1 per cent increase in sales on the comparable quarter last year, with consolidated net sales reaching 125.4 billion yen (588.4 million pounds).

It attributed this rise primarily to a large one-off out-licensing payment in its pharmaceuticals segment and the consolidation of Kirin Pharma after the completion of a share exchange at the start of April 2008.

Operating income for the three-month period from April to June 2008 rose by 125.6 per cent to 17 billion yen, driven by a rise in pharmaceutical business sales, while recurring income rose 124.5 per cent to 18.7 billion yen.

Net income rose 80.2 per cent in the period to 9.5 billion yen.

Yuzuru Matsuda, president and chief executive officer of Kyowa Hakko, said: “We have made a strong start to our new three-year medium-term plan and there is no change in our forecasts for full-year sales and profits.”

He added the company’s plans to form a partnership with the Kirin group and integrate its business with Kirin Pharma to form a new company – Kyowa Hakko Kirin – in October 2008 are proceeding well.

Last month, Kyowa Hakko and Lonza announced an extension to their strategic partnership for the licensing of the GS (glutamine synthetase) Gene Expression System.