Profits Growth For Japanese Cos, But Forecasts Conservative

The majority of Japanese drug companies experienced earnings growth in the fiscal year ended March 31, 1995, but are cautious about the current year. However, there are some exceptions, such as Ono Pharmaceutical.

Ono Pharmaceuticals had higher sales and earnings in the fiscal year ended March 1995. Sales advanced 10.3% to 121.1 billion yen ($1.4 billion), with growth of 20% for its leading products: a treatment for diabetic neuropathy, Kinedak (epalrestat); and Cataclot (ozagrel sodium), a treatment for acute cerebral infarction. Both products had lower National Health Insurance prices, which came into effect in 1994.

Ono's pretax profits were 49.9 billion yen, up 12.6%. Ordinary profits grew 13.7% to 26.2 billion yen and net profits were 22 billion yen, up 19.9%. Ono spent 15.5 billion on R&D, up 23.5% on the previous year. The results were in line with broker Lehman Brothers' expectations.