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Astellas Reports First Half FY2016 Financial Results, Revises Fiscal Year OutlookAstellas Pharma Inc. (TOKYO:4503, President and CEO: Yoshihiko Hatanaka, "Astellas") today announced financial results for the first six months of fiscal year 2016 ending March 31, 2017 ("FY2016"). "Our results continue to demonstrate sustainable growth by increasing sales of key global products, XTANDI® and Betanis® / Myrbetriq® / BETMIGA® (mirabegron), launching new products and investment for innovation," said Yoshihiko Hatanaka, President and CEO, Astellas. "We remain committed to delivering value for patients as we reinforce in our strategic plan through maximizing the product value, creating innovation and pursuing operational excellence."
Impact of Foreign Exchange Rate on Financial Results The foreign exchange rates for the yen in the first six months of FY2016 are shown in the table below. The resulting impacts were a 64.1 billion yen decrease in sales and a 12.5 billion yen decrease in core operating profit compared to if the exchange rates of the first six months of FY2015 were applied.
Revenue Highlights for First Six Months Sales in the first six months of FY2016 decreased by 5.2% compared to those in the corresponding period of the previous fiscal year ("year-on-year") and resulted in 651.7 billion yen. Sales decreased due to the impact of foreign exchange as well as the impact of the NHI drug price revision in Japan enforced in April 2016. On a constant currency basis, however, sales increased by approximately 4% year-on-year. In terms of global products, sales of XTANDI® grew while sales of overall OAB treatments Vesicare® (solifenacin succinate) and Betanis® / Myrbetriq® / BETMIGA® decreased due to the impact of foreign exchange. Prograf® (tacrolimus) sales also decreased. [ Sales by Region1 ]
Expense and Other Financial Highlights
As a result of the above, core operating profit increased by 14.7% year-on-year to 166.5 billion yen. Meanwhile, core profit for the period increased by 16.0% year-on-year to 120.6 billion yen and basic core earnings per share increased by 18.8% year-on-year to 56.75 yen. Based on the transfer of the global dermatology business in April 2016, the sales and the expenses of the transferred products were not included in the first six months of FY2016; however the consideration for the business transfer was recognized as revenue over certain periods. As a result, there were certain positive impacts on sales and profit for the first six months of FY2016. FY2016 Guidance Revisions The company has downwardly revised its forecasts for sales, and upwardly revised its forecasts for core operating profit and core profit for the year from the figures announced in May 2016 ("initial forecast") based on the situation of financial results for the first six months of FY2016 and the trend of foreign exchange rates. Revised expected exchange rates are anticipated to cause a 56.8 billion yen decrease in sales and a 10.0 billion yen decrease in core operating profit compared to if the expected exchange rates of the initial forecast were applied.
Latest Strategic Highlights Astellas continues to create sustainable growth over the mid-to long-term through the pursuit of three main strategies - "Maximizing the Product Value," " Creating Innovation" and "Pursuing Operational Excellence." The company achieved multiple accomplishments during the second quarter of FY2016 (July 1, 2016 - September 30, 2016) including the most recent highlights outlined below. Maximizing the Product Value
Creating Innovation
Pursuing Operational Excellence
NOTE: For further information on the results and their drivers, please refer to the reference documents: Financial Results, Supplementary Documents, Overview of R&D Pipeline and Presentation Material for Information Meeting available on the Astellas website. About Astellas Astellas Pharma Inc., based in Tokyo, Japan, is a company dedicated to improving the health of people around the world through the provision of innovative and reliable pharmaceutical products. We focus on Urology, Oncology, Immunology, Nephrology and Neuroscience as prioritized therapeutic areas while advancing new therapeutic areas and discovery research leveraging new technologies/modalities. We are also creating new value by combining internal capabilities and external expertise in the medical/healthcare business. Astellas is on the forefront of healthcare change to turn innovative science into value for patients. For more information, please visit our website at www.astellas.com/en. Cautionary Notes
In this press release, statements made with respect to current plans,
estimates, strategies and beliefs and other statements that are not
historical facts are forward-looking statements about the future
performance of Astellas. These statements are based on management's
current assumptions and beliefs in light of the information currently
available to it and involve known and unknown risks and uncertainties. A
number of factors could cause actual results to differ materially from
those discussed in the forward-looking statements. Such factors include,
but are not limited to: (i) changes in general economic conditions and
in laws and regulations, relating to pharmaceutical markets, (ii)
currency exchange rate fluctuations, (iii) delays in new product
launches, (iv) the inability of Astellas to market existing and new
products effectively, (v) the inability of Astellas to continue to
effectively research and develop products accepted by customers in
highly competitive markets, and (vi) infringements of Astellas'
intellectual property rights by third parties.
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