Astellas sees first-half 2009/10 profits fall; revises forecast downward

Japan's second- largest drugmaker Astellas Pharma, having reported a downturn in ordinary income of 13.1% to 128.33 billion yen ($1.43 billion) and net income 8.2% lower at 83.49 billion yen for the first half of the fiscal year ended September 30, has cut its full-year profit forecast by 7.4%, citing the stronger yen and higher R&D costs, as well as generic competition.

Net income may decline 27% to 125 billion yen ($1.4 billion) in the 12 months to March 31, said the Tokyo-based company, which is less than the 135 billion yen it predicted in August and analysts' projection of 136 billion yen, based on the median of three estimates compiled by Bloomberg.

Group turnover for the reporting period edged up just 0.3% to 494.64 billion yen. However Astellas raised its full-year revenue projection to 976 billion yen from the previously expected 968 billion yen.

Sales of the transplant rejection drug Prograf (tacrolimus), which now faces generic competition from Novarits' Sandoz unit, fell 1.3% to 103 billion yen for the first half. Astellas' chief financial officer, Yoshihiko Hatanaka, said that demand for the generic drug 'is spreading faster than we anticipated,' with the company predicting it will account 'for around 40% of the market Prograf used to own' in the second half. Mr Hatanaka added that Astellas cannot 'accurately predict what will happen to Prograf sales' next year.

Among other products, the firm's over-active bladder agent Vesicare (solifenacin) saw revenue grow 10.5% to 40 billion compared with the year-ago period. Turnover from Harnal (tamsulosin) for benign prostatic hyperplasia (Omnic in Europe and Flomax in the USA) increased 3.3% to 62.50 billion yen. Sales of Lipitor (atorvastatin), the blockbuster cholesterol lowerer sold under license from drug behemoth Pfizer, were up 5.0% at 49.3 billion yen.