Difficult Year For Fujisawa After SB Deal Terminated

Largely as a result of the termination of its distribution deal for Smith-Kline Seiyaku's products, but also due to the lack of a rampant influenza season and other difficulties caused by government health care cost measures, Fujisawa saw sales for the year ended March 31, 1996, decline 9.2% to 219.28 billion yen ($2.09 billion).

Operating income also fell, dropping 21.6% to 19.63 billion yen as a result of a decrease in net sales and a rise in selling, general and administrative expenses. Recurring profit was down 7.5% at 22.2 billion yen, and net income fell by 34.3% to 4.91 billion yen, despite improved operations for Fujisawa USA. Royalty income increased by 4.2% to 3.98 billion yen, helped by the increase in royalty from the US and Europe on sales of the immunosuppressant Prograf (tacrolimus).

Sales of ethical drugs - which account for 85.7% of group turnover - totalled 188.02 billion yen, down 10.1% on the previous year. Within this sector, there were positive developments for the antihypertensive/cerebro-circulation drug Nivadil (nilvadipine) and the antiglaucoma agent Rescula (isopropyl unoprostone).