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Takeda forecasts 17 percent profit decline on Velcade U.S. exclusivity loss

Reuters  |  TOKYO 

By Sam Nussey

TOKYO (Reuters) - Japan's Pharmaceutical Co Ltd on Monday forecast a 17 percent fall in operating profit for the year through March 2019 as drug looks set to lose exclusivity in the U.S.

The decline, which is likely to be partly offset by growing sales of drugs such as treatment Entyvio and heartburn and ulcer drug Takecab, underscores Takeda's need to bolster its pipeline. It also comes days after it agreed to a record-breaking $62 billion deal to acquire London-listed

Profit for the year ended March 2018 grew 55 percent to 241.8 billion yen ($2.21 billion) - its highest in six years.

Entyvio sales grew 41 percent to 201.4 billion yen, with sales up 62 percent to 55.1 billion yen. sales fell 0.2 percent to 137.3 billion yen.

The acquisition is expected to add strength in and blood-derived therapies to Takeda's three core areas of gastroenterology, oncology and It will also result in the U.S. for almost half of sales from a third currently.

treatments are seen as more sheltered from price pressures in the U.S. affecting areas like oncology.

The deal could close by the end of the year, said last week. Remaining hurdles include receiving regulatory and shareholder approval.

($1 = 109.3600 yen)

(Reporting by Sam Nussey; Editing by Edwina Gibbs and Himani Sarkar)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, May 14 2018. 12:15 IST