Sales up but profits down for top Japan firms
This article was originally published in Scrip
Aggregate sales of 14 listed Japanese pharmaceutical companies with annual sales of over ¥100 billion ($1.05 billion) rose by 5% to ¥3,410 billion in the first half to September 30th. Increased overseas sales, helped by a stronger yen, drove the growth and reduced the impact of the general April price cut at home. But higher R&D spending and in-process R&D costs associated with acquisitions contributed to a 32% fall in combined operating profit, to ¥541.7 billion, said the country's largest research-based association, the JPMA. Aggregate net profit was 38% lower at ¥211.2 billion. For the full year, total net profit for the group is expected to slip by around 20% on a 5% increase in sales.