Takeda Advancing Despite Challenging Environment

Takeda of Japan successfully met its goals for 1993 despite turbulence in the market and the recessionary and competitive environment, according to its annual report for 1993. This was brought about by management restructuring, streamlining of distribution systems, and the steady sales growth of both new pharmaceuticals and other major drugs. These strong performances offset lackluster performances in its nonpharmaceutical businesses.

The company noted that Japan's ethical drug market is feeling the impact of tighter codes of conduct aimed at promoting fair competition and upgrading the quality of services. This is reshaping the market and has had a positive effect on the company's financial performance.

In fiscal 1993, which ended in March 1994, Takeda made a 1.1% gain in consolidated net sales to 727.8 billion yen ($7.1 billion). Operating income was ahead 15.3% to 88.4 billion yen, with both sales and selling, general and administrative expenses falling despite the rise in sales. Pretax profits were 103.2 billion yen, up 10.9%, but net income was down marginally 0.8% to 47.6 billion yen. Earnings per share were down to 54.43 yen from 54.98 yen a year earlier.