Nippon Shinyaku Sees Strong Sales Growth

Japan's Nippon Shinyaku reports sales of 52.35 billion yen ($479.8 million) for the fiscal year to end-March 1996, a rise of over 100% on the year earlier. Recurring profit improved marginally (+0.2%) to 6.47 billion yen, and net profit rose 6.9% to 2.93 billion yen. Earnings per share were 43.20 yen compared with 47.80 yen.

For the coming fiscal year, the company expects turnover to increase to 55.00 billion yen, with recurring profit to rise to 6.60 billion yen, net profit to reach 3.00 billion yen and EPS at 42.70 yen.

Nippon Shinyaku weathered the government's drug price cuts well, facing reductions of only 3.1% on average. Strong demand for its antirheumatic agents and anti-inflammatory analgesics offset price cuts. The company, however, warns that profits for fiscal 1997 will be flat due to burdensome research and development and sales expenses.