Exports To Boost Sankyo Profits

Japan's second largest drugmaker Sankyo is expected to post pretaxprofits of 65 billion yen ($534 million) in the fiscal first half ended September 30, 1997, which represents an increase of 21% over the corresponding period last year, and is some 5 billion yen more than initial estimates. Growth has been driven by strong export sales of its drugs, which climbed nearly 60% to 40 billion yen, with the antidiabetic Noscal (troglitazone) selling particularly well. Domestic sales moved up to 195 billion yen.

Sales of Sankyo's own drugs increased, helping to bring down the cost-to-sales ratio by 3% to 35%, while first-half operating profits rose 19% to 62.5 billion yen. The company forecasts pretax profits for the full year to reach 120 billion, an increase of 7% on fiscal 1996, and estimates an increase in sales of 4% to a record 460 billion yen, despite the negative impact of increases in consumption tax in April (Marketletters passim).