EISAI'S SALES AHEAD IN FLAT JAPANESE SECTOR

Eisai's sales and earnings for the year ending March 1994 exceeded analysts' estimates in a relatively flat sector. Sales were up 2.6% to 224.4 billion yen ($2.13 billion), with operating profit rising 5.9% over the previous year to 32.7 billion yen. Recurring profit rose 4.9% to 32.9 billion yen and net profit increased 4.2% to 15.7 billion yen.

Company targets for 1994/95 are also ahead of analysts' expectations, and, say Lehman Bros estimates, owing to the 8.5% average price cut levied on the company, as well as the likelihood of delays in the approval of menatetrenone (for osteoporosis) and iloprost (for peripheral arterial occlusion), Eisai's estimates for 94/95 may be too optimistic. Shigeru Mishima at Barclays de Zoete Wedd also says that forecasts for the company for 94/95 are likely to be revised down, and notes that the firm is likely to show another flat year. However, he predicts that earnings growth is likely to come in the course of time.

Other Japanese Results Daiichi Pharmaceutical's results for the year were in line with expectations, with sales up 3.1% to 207.5 billion yen ($1.9 billion). Operating profit rose 3% to 34.3 billion yen, recurring profit increased 1.3% to 38.3 billion and net profit rose 0.7% to 17.1 billion yen. The company's sales of the synthetic antibacterial agent Tarivid (ofloxacin) were stronger than expected (rising 12.2%), which offset a decline in Feron (interferon alpha) sales for hepatitis B. Estimates for 94/95 are flat, mainly owing to the large price cut of 22.7% on Feron.