Japan's Astellas unveils five-year plan, with focus on overcoming patent loss

Japanese pharmaceutical major Astellas unveiled its new mid-term five-year management plan for the fiscal-year period ending in March 2011 at its board meeting earlier this month, and held an analysts' conference to present details.

The forecast was perceived by those in the financial area as rational and realistic, causing the firm's share price to advance. The new plan calls for turnover of 1,060.0 billion yen ($8.9 billion) in the fiscal year ending March 2011 (against the estimated 902.0 billion yen in the fiscal year to March 2007) and operating income of 280.0 billion yen (versus the projected 180.0 billion yen), with planned annual spending on R&D of 170.0 billion yen (against 175 billion yen, which included an extraordinary 40.0 billion yen in-licensing fees), Astellas noted.

Earnings per share growth of mid-teens is projected during the five years against 220 yen projected for the current year. Return on equity of 18% (against 10.7%) and dividend on equity of 8% (against 3.7%) are targeted. The principal message of new mid-term plan consists of: