Astellas Pharma sees profits rise 42 per cent

Japan’s third largest drugs maker, Astellas Pharma today released half year results showing the company had boosted profits 42 per cent and was confident of rapid future growth.

Created in April through Yamanouchi Pharmaceutical’s acquisition of Fujisawa Pharmaceutical, Astellas said operating cost reduction and overseas demand for its immunosuppressant Prograf and urinary drug Omnic, known as Harnal in Japan.

Net profit for the period totalled 67.32 billion yen ($568.9 million, ??326 million) from 47.35 billion yen in combined profit of the two predecessor companies a year ago.

“Sales growth of our high-margin products abroad helped improve profit margins, while synergies from the merger benefited our earnings from a sales and cost point of view,” Toshinari Tamura, executive vice president, told a news conference.

Mr Tamura added that the company expected sales of its core products such as cholesterol-lowering Lipitor and Micardis would grow in Japan, and demand for Prograf and Omnic would continue to be strong in overseas markets.

Sales in Europe increased 8.8 billion yen to 98.8 billion yen in the period and are expected to increase 14.0 billion yen to 200.5 billion yen due to the growth of Prograf and Omnic and the contribution of Vesicare.

Research and development spending fell nine per cent in the first half to 56 billion yen, down on the May projection of 64 billion yen.

However, the company stuck to its annual budget of 135 billion yen, up six per cent from a year ago.

“We will aggressively spend in R&D in the second half, especially in licensing deals to widen our development pipeline,” Mr Tamura said.

© Adfero Ltd