Daiichi Sankyo plans to double profits in next three year, with focus on developing Ranbaxy unit

Japanese drug major Daiichi Sankyo, which has 64% control of Ranbaxy, India's largest pharmaceutical by global sales, revealed in its second mid-term business plans that it aims to nearly double its operating profit and increase revenue by 20% in three years, as well as expecting an 80% increase in the Indian unit's income over the next two years.

This will prioritize creating more innovative products while pushing ahead with a 'Hybrid Business Model' that emphasizes vaccines, established pharmaceuticals and over-the-counter medicines to address market and customer diversity. For its new plan, Daiichi Sankyo has outlined the following growth targets, which it says exceed the global market average.

The Japanese firm is targeting net sales for fiscal year 2012 of 1,150 billion yen ($12.67 billion) compared to 960 billion yen in 2009; operating income of 189 billion versus 96 billion yen in 2009; overseas turnover of 650 billion yen (vs 488 billion yen); overseas sales ratio of 56.5% vs 50.8%; earnings per share of at least 140 yen (vs 63.9 yen) and return of equity of no less than 10%, vs 5.2% in 2009