Japanese pharmaceutical giant Daiichi Sankyo has targeted doubling annual operating profit and increasing revenue by a fifth within three years and sees the removal of US regulatory blocks on Indian subsidiary Ranbaxy as key.
Daiichi Sankyo bought a majority stake in India’s Ranbaxy Laboratories in 2008 but the company has been hit by US import bans after the alleged falsification of production data.
The subsidiary is, however, expected to be free of such bans by 2012 and Daiichi Sankyo expects to see profits from this regulatory freedom accounting for 23% of Daiichi Sankyo’s targeted 2012/2013 revenues.
Daiichi Sankyo president Takashi Shoda said that because of the US import bans the company has been unable to achieve the synergies it had planned.
“This will be our key challenge in the next three years,” Shoda said.
The president added that Daiichi Sankyo had dispatched a quality control executive to Ranbaxy in January as part of efforts to win back US approval of Ranbaxy’s manufacturing process.
The company is targeting ¥180bn ($2bn) in operating profit for the year ending in March 2013 on revenue of ¥1.15t.
According to Reuters, Daiichi Sankyo expects overseas sales to account for 56.5% of overall revenue in 2012/13.
In March Ranbaxy confirmed that it would be unable to launch a much-anticipated high revenue-generating urinary drug generic in the US as scheduled due to stalled final regulatory approval.