Daiichi Sankyo streamlining leads to fall in revenue but 24% increase in profit

Japanese drugmaker Daiichi Sankyo has reported a 5% drop in revenue for the fiscal year ended March 31, 2008, versus the previous year's figure, yet also a 24% rise in income, due to streamlining of its non-pharmaceutical business.

The firm has rallied efforts to make its non-pharmaceutical subsidiaries independent during the fiscal year. This has reduced turnover to 880.12 billion yen ($8.47 billion) vs 929.5 billion yen year-on-year, but also cut its expenses. As such, the firm's profit rose to 97.66 billion yen, or earnings per share of 135.35 yen, vs 78.55 billion yen income in the previous period.

The firm maintains that, discounting exceptional factors, its pharmaceutical sales for the year in fact grew. This served to offset aggressive investment in pharmaceutical R&D as a part of its plan to focus on this sector of its market. Nonetheless, R&D costs dropped 4% to 163.4 billion yen, vs full-year 2007.