Squeeze On Japanese Pharma Cos In First Half

Falling prices brought about by the Japanese government have had a negative effect on sales for Japanese pharmaceutical companies.

Shiseido's sales for the first six months ended March 31, 1994, were 196.8 billion yen ($2 billion), down 1.5% on the like, year-earlier period. Operating profits were slightly ahead, 0.9%, to 15.9 billion yen, and net profits grew 1% to 7.8 billion yen. The company's pharmaceutical business achieved a sales increase in the six-month period of 10%, reports Pharma Japan, boosted by over-the-counter sales of products to treat keratosis and newly-introduced throat sprays. Skin protection preparations were also said to have sold well. In the ethical pharmaceuticals line, Shiseido's ophthalmic surgical aid Opelead is reported to have made some inroads. For the full financial year, sales are expected to be around 392 billion yen.

Torii Pharmaceutical has posted virtually flat first-half sales at 17.8 billion yen. Ordinary profits were 2.3 billion yen, down 35.4%, and net profits plunged 46.9% to 912 million yen. The company said that the inclusion of outpatient dialysis treatment in the flat-sum reimbursement system, heavy depreciation costs on equipment for its research laboratory and other investments during the first half made it anticipate lower profits. In the first six months, sales of Torii's proteolytic enzyme inhibitor Futhan (nafamostat mesilate) were just over 6 billion yen, down 11.6%, while those of hyperuricemia agent Urinorm (benzbromarone) advanced 15.3% to 2.1 billion yen. Another decliner was the oral synthetic antibiotic Baccidal (norfloxacin), down 24.5% to just over 1 billion yen. Sales of the newly-introduced topical steroid Antebate (betamethasone) were 681 million yen in the first six months.