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Nov. 4 (Bloomberg) -- Takeda Pharmaceutical Co., the Japanese drugmaker that bought Swiss rival Nycomed in September, cut its full-year profit forecast 32 percent on costs related to the 9.6 billion euro ($13.3 billion) takeover and stronger yen.
Net income will plunge 31 percent to 170 billion yen ($2.2‘ billion) in the 12 months ending March 2012 from a year earlier, instead of the 250 billion yen forecast in July, Takeda said in a statement today. The Osaka-based drugmaker is expected to earn 255 billion yen, according to the average of five analyst estimates compiled by Bloomberg in the past four weeks.
The new forecast reflects 77 billion yen in costs associated with the Nycomed purchase. The Zurich-based drugmaker gave Takeda customers in 42 more countries, reducing its reliance on sales in Japan and the U.S., where first-half revenue declined 10 percent because of the stronger yen.
“The first-half revenue was largely affected by the stronger yen,” said Hiroshi Takahara, head of finance and accounting, told reporters and analysts in Tokyo today. “Business was in line with expectations when the currency impact is removed.”
The announcement was made after markets in Tokyo closed. Takeda gained 0.9 percent to 3,505 yen, half the benchmark Topix index’s advance today. The stock has fallen 12 percent this year.
Net income declined 5.9 percent to 135.7 billion yen in the six months ended Sept. 30 from 144.2 billion yen a year earlier. First-half revenue fell 1.6 percent to 702.5 billion yen.
Bladder Cancer
Sales of the diabetes treatment Actos dropped 13 percent to 171 billion yen. Demand was dented after it was linked with a higher risk of bladder cancer, Masumitsu Inoue, Takeda’s head of business strategy, said at the Tokyo briefing.
The stronger yen trimmed 28.7 billion yen from sales in the six-month period, Takeda said. The drugmaker generates more than half of its sales outside of Japan.
The dollar averaged 79.6 yen in the six months ended Sept. 30, weakening from 88.9 yen a year earlier. A stronger Japanese currency reduces the value of Takeda’s U.S. revenue when it’s converted into yen. The Japanese drugmaker predicts the yen will average 75 per dollar and 105 per euro in the second half.
Nov. 4 (Bloomberg) -- Takeda Pharmaceutical Co., the Japanese drugmaker that bought Swiss rival Nycomed in September, cut its full-year profit forecast 32 percent on costs related to the 9.6 billion euro ($13.3 billion) takeover and stronger yen.
Net income will plunge 31 percent to 170 billion yen ($2.2‘ billion) in the 12 months ending March 2012 from a year earlier, instead of the 250 billion yen forecast in July, Takeda said in a statement today. The Osaka-based drugmaker is expected to earn 255 billion yen, according to the average of five analyst estimates compiled by Bloomberg in the past four weeks.
The new forecast reflects 77 billion yen in costs associated with the Nycomed purchase. The Zurich-based drugmaker gave Takeda customers in 42 more countries, reducing its reliance on sales in Japan and the U.S., where first-half revenue declined 10 percent because of the stronger yen.
“The first-half revenue was largely affected by the stronger yen,” said Hiroshi Takahara, head of finance and accounting, told reporters and analysts in Tokyo today. “Business was in line with expectations when the currency impact is removed.”
The announcement was made after markets in Tokyo closed. Takeda gained 0.9 percent to 3,505 yen, half the benchmark Topix index’s advance today. The stock has fallen 12 percent this year.
Net income declined 5.9 percent to 135.7 billion yen in the six months ended Sept. 30 from 144.2 billion yen a year earlier. First-half revenue fell 1.6 percent to 702.5 billion yen.
Bladder Cancer
Sales of the diabetes treatment Actos dropped 13 percent to 171 billion yen. Demand was dented after it was linked with a higher risk of bladder cancer, Masumitsu Inoue, Takeda’s head of business strategy, said at the Tokyo briefing.
The stronger yen trimmed 28.7 billion yen from sales in the six-month period, Takeda said. The drugmaker generates more than half of its sales outside of Japan.
The dollar averaged 79.6 yen in the six months ended Sept. 30, weakening from 88.9 yen a year earlier. A stronger Japanese currency reduces the value of Takeda’s U.S. revenue when it’s converted into yen. The Japanese drugmaker predicts the yen will average 75 per dollar and 105 per euro in the second half.