Astellas profits up but decline predicted for 2006

Japanese pharmaceutical company Astellas has reported that its income increased by four per cent, up to 202 billion yen (971 million pounds) during its 2005 financial year, which ended in March.

However, the company has predicted 9.2 per cent drop in income during the 2006 financial year. It cites the sale of Zepharma, the company’s withdrawal from home care business, the withdrawal from the medical supplies and systems business and other company transfers as having a negative impact on total future sales.

It also said that the Japanese government cut in drug prices, on average 6.7 per cent, could harm future sales. However, it did note that sales of Micardis, Lipitor, Myslee and Prograf would grow and that it could look forward to the launch of Vesicare in Japan, a treatment for overactive bladder and incontinence diseases, already in use in the US and Europe.

For the future, Astellas said that research and development is of paramount importance. A statement read: “The company aims to make a sustainable growth in mid- and long-term by generating a continuous and fast stream of innovative new products.”

“From that perspective, the company is proactively promoting its research and development activities as its most important measure,” it added.

The company acquired the research arm of Dynogen Pharmaceuticals to aid this and it commented that Prograf has been approved for rheumatoid arthritis in Japan as well as for use in heart transplant patients in the US.

Last month the company announced the closure of its research facility at the University of Edinburgh, saying that it sought to centralise its research operations in Japan. The central nervous system research facility had discovered two new drugs since its inception in 1989.

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