Japanese drug maker Daiichi Sankyo today said it has swung into a profit of 39.24 billion yen (about $43 million) for the April-December period in 2009 on account of contribution from its Indian unit Ranbaxy Laboratories.
In the year-ago period, the company had a net loss of 297.83 million yen, Daiichi said in a statement.
The company has clocked robust sales in the nine-month period ended December 31, 2009. Daiichi's sales increased to 725.66 billion yen in the nine-month period of 2009 from 627.62 billion yen in the year-earlier.
"Despite the appreciated Japanese yen compared with the same period last year, the Group's revenue increased by a contribution of 102.1 billion yen from the net sales of Ranbaxy which was consolidated as a subsidiary in November 2008," Daiichi said.
Daiichi, which owns 64 per cent stake in Ranbaxy, has lifted its profit outlook for the fiscal year ending March 31, 2009 on expectation that overseas subsidiaries would contribute to sales and earnings.
The company raised its estimates for net income to 45 billion yen from earlier the projection of 40 billion yen, whereas it expects an increase of 14 per cent in net sales to 960 billion yen.
"Despite a harsh earning environment in which drug price revisions to be implemented are leaving domestic market trends uncertain and the yen is appreciating ever more on foreign exchange markets, among others, the company expects overseas subsidiaries to contribute to sales and earnings," Daiichi said.
In terms of geographical locations, India has contributed 44.8 billion yen in the overall sales figure whereas Daiichi's sales in European regions amounted to 71.7 billion yen, up 38.9 per cent year-on-year "due in part to the contribution of the net sales of Ranbaxy."