Eisai cuts annual forecast as 2Q profit, sales fall on lower Aricept revenue

[Anonymous]

Eisai cuts annual forecast as 2Q profit, sales fall on lower Aricept revenue
By Matthew Dennis
Created 11/01/2011 - 04:52

Eisai indicated Tuesday that it expects net income for the current fiscal year to reach 67.5 billion yen ($863.4 million), down from a previous forecast of 69.5 billion yen ($889 million), as the company faces declining sales of Aricept and a strong Japanese currency. The drugmaker said that revenue in the full year will also be lower, hitting 654 billion yen ($8.4 billion), instead of an earlier estimate of 700 billion yen ($8.9 billion).

“The past six months was the first time for us to experience the full impact of Aricept’s patent expiration in the US,” remarked CEO Haruo Naito, adding that "we did everything we could to overcome that.” Generic versions of the Alzheimer's disease drug were launched in the US last November. Eisai noted that for the current fiscal year, it predicts that global sales of Aricept will be 156 billion yen ($2 billion), or 31.5 billion yen ($402.9 million) less than the company predicted earlier.

In the current quarter, Eisai reported that sales of Aricept more than halved to 39.3 billion yen ($502.7 million), compared to 89.1 billion yen ($1.1 billion) in the same period last year. Meanwhile, sales of the proton pump inhibitor Aciphex declined from 35.1 billion yen ($449 million) to 30.1 billion yen ($385 million) as overall revenue dropped 21 percent to 163.7 billion yen ($2.1 billion). Net income for the quarter reached 19.8 billion yen ($253.3 million), down 11 percent year-on-year.

 

[Anonymous]

Eisai cuts annual forecast as 2Q profit, sales fall on lower Aricept revenue
By Matthew Dennis
Created 11/01/2011 - 04:52

Eisai indicated Tuesday that it expects net income for the current fiscal year to reach 67.5 billion yen ($863.4 million), down from a previous forecast of 69.5 billion yen ($889 million), as the company faces declining sales of Aricept and a strong Japanese currency. The drugmaker said that revenue in the full year will also be lower, hitting 654 billion yen ($8.4 billion), instead of an earlier estimate of 700 billion yen ($8.9 billion).

“The past six months was the first time for us to experience the full impact of Aricept’s patent expiration in the US,” remarked CEO Haruo Naito, adding that "we did everything we could to overcome that.” Generic versions of the Alzheimer's disease drug were launched in the US last November. Eisai noted that for the current fiscal year, it predicts that global sales of Aricept will be 156 billion yen ($2 billion), or 31.5 billion yen ($402.9 million) less than the company predicted earlier.

In the current quarter, Eisai reported that sales of Aricept more than halved to 39.3 billion yen ($502.7 million), compared to 89.1 billion yen ($1.1 billion) in the same period last year. Meanwhile, sales of the proton pump inhibitor Aciphex declined from 35.1 billion yen ($449 million) to 30.1 billion yen ($385 million) as overall revenue dropped 21 percent to 163.7 billion yen ($2.1 billion). Net income for the quarter reached 19.8 billion yen ($253.3 million), down 11 percent year-on-year.

Shocked, shocked...the forecasts were inflated and wrong. Any junior brand manager looking at those forecasts could have told him the forecasts were inflated. They just wanted the dream to last a minute longer. Too bad no one asked the forecasters or the VPs what the assumptions were.

 

[Anonymous]

Shocked, shocked...the forecasts were inflated and wrong. Any junior brand manager looking at those forecasts could have told him the forecasts were inflated. They just wanted the dream to last a minute longer. Too bad no one asked the forecasters or the VPs what the assumptions were.

Couldn't happen to a better bunch of people! Congrats

 

[Anonymous]

Lonnell and the crew really handled this well. Someone should write a book on how to steadily destroy a company. I realize why people are protesting on Wall St. These clowns, just like anywhere else are raking in the money while pulling it all from the representatives. What could Lonnell's or OB's resumes look like when they leave here? How does one get hired showing they slowly but surely lost market share, lost product approvals and had other promotional flops? Will they be able to blame the reps again? Would anyone buy this? Or would the corporate execs elsewhere just laugh since they do the same thing?

 

[Anonymous]

Lonnell and the crew really handled this well. Someone should write a book on how to steadily destroy a company. I realize why people are protesting on Wall St. These clowns, just like anywhere else are raking in the money while pulling it all from the representatives. What could Lonnell's or OB's resumes look like when they leave here? How does one get hired showing they slowly but surely lost market share, lost product approvals and had other promotional flops? Will they be able to blame the reps again? Would anyone buy this? Or would the corporate execs elsewhere just laugh since they do the same thing?

LC, DT, OB will not pay a price; they will just blame it on Naito and R&D and will claim having demonstrated strong leadership because they steered the ship through rough waters. Being able to fire people is seen as leadership quality when you are an execs. No one will know that the morale in the company was zero and the failure of existing brands was due to them. They will just play up the sound bytes. It always sucks to be at the bottom of the food chain and it always pays to be at the top becuase the buck does not stop at the execs doorsteps.

 

[Anonymous]

LC, DT, OB will not pay a price; they will just blame it on Naito and R&D and will claim having demonstrated strong leadership because they steered the ship through rough waters. Being able to fire people is seen as leadership quality when you are an execs. No one will know that the morale in the company was zero and the failure of existing brands was due to them. They will just play up the sound bytes. It always sucks to be at the bottom of the food chain and it always pays to be at the top becuase the buck does not stop at the execs doorsteps.

Don't count on it. Their reputation is toast. Many have been trying to bolt, but they can't get people to give them the time of day. LC was begging J&J for a job a while back.