Daiichi may post Y340 b net loss in FY08

Japanese drugmaker Daiichi Sankyo Co is expected to incur a group net loss of around 340 billion yen for fiscal 2008, nearly 30 billion yen wider than estimated, the Nikkei business daily said.

Operating profit in fiscal 2008 appears to have plunged 43 per cent to roughly 90 billion yen, falling 10 billion yen short of the company's target, the paper said without citing sources.

In 2007, the company posted a group profit of 97.6 billion yen, the Nikkei said.

The yen's appreciation decreased overseas sales of the company's Olmesartan anti-hypertension treatment, while sales of its Cravit anti-bacterial agent slowed in Japan, the paper said.

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Amortization of goodwill charges stemming from the company's acquisition of Ranbaxy Laboratories Ltd likely came to nearly 400 billion yen, 20 billion to 30 billion yen more than expected, because the major Indian drugmaker's stock price continued to fall, the Nikkei said.

In fiscal 2009, Daiichi Sankyo's sales are projected to increase 12 per cent to roughly 950 billion yen, with operating profit forecast to rise 11 per cent to around 100 billion yen, the paper said, adding that the firm might see a net profit because goodwill amortization costs are expected to plummet.

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