Disappointing 1st Half For Kyowa Hakko

Kyowa Hakko of Japan has posted sales of 167.1 billion yen ($1.37billion) for the the first half of fiscal 1997, an increase of just 0.8% on the like, year-earlier period, and considerably below the company's target of 4.3% growth. Operating profit declined 10.2% to 10.97 billion yen.

Pharmaceutical sales remained stagnant, as first-half recurring profit fell to 11.34 billion yen, down 11.4% year-on-year, hit by the government's decision to increase consumption tax and enforce price cuts (see left), and only its granulocyte colony stimulating factor derivative Neu-up (nartograstim) and antihypertensive Coniel (benidipine) saw sales rise.

Sales of the latter, however, are expected to flatten out in the face of competition from Pfizer's Norvasc (amlodipine besylate). With no new drugs due to hit the market in the second half of 1997, Kyowa's drug sales are expected to fall further.