Teikoku Hormone Battles Price Cuts

Teikoku Hormone says that although it is struggling under National Health Insurance price cuts, demand for hormonal and digestive agents is growing. The company sees sales of digestive agents rising 15% in the forthcoming fiscal year, but notes that R&D spending will hold back operating profit.

For the year ended March 1996, TH reports sales up 3.3% at 24.22 billion yen ($222.0 million), with recurring profit rising 8.2% to 3.18 billion yen and net profits up 12.9% to 1.32 billion yen. Earnings per share were 54.90 yen compared with 48.60 yen the previous year. For the year ending March 1997, the firm forecasts sales, recurring profit, net profit and EPS at 25.30 billion yen, 3.28 billion yen, 1.35 billion yen and 56.30 yen, respectively.