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UPDATE 1-Japan's Takeda forecasts 193 bln yen annual operating loss on Shire deal

Tue, 14th May 2019 07:56

* 193 bln Y op loss forecast this yr vs 227.5 bln profitview ofanalysts

* Shire acquisition made Takeda one of the world's mostindebteddrugmakers(Adds details of results, background)

TOKYO, May 14 (Reuters) - Takeda Pharmaceutical Coforecast on Tuesday it would have an operating loss in thecurrent financial year, as it books costs associated with themultibillion-dollar Shire deal.

Japan's biggest drugmaker expects an operating loss of 193billion yen ($1.76 billion) for the year to March 2020, comparedwith a 205 billion yen profit a year earlier.

That compares with an average estimate for the current yearof 227.5 billion yen profit from 12 analysts, compiled byRefinitiv.

Annual profit would be squeezed as Shire-related costs pileup due to re-evaluation of Shire's inventories and fixedintangible assets, the Japanese drugmaker had flagged earlier.

The Shire acquisition, completed in January, catapultedTakeda into the world's top 10 drugmakers by sales but also madeit one of the most indebted.

Takeda agreed last week to sell its dry eye drug Xiidra toSwiss drugmaker Novartis for up to $5.3 billion, aspart of a move to dispose of $10 billion worth of non-coreassets to cut debt. The company also said it is sellingTachoSil, a surgical patch for bleeding control, to Johnson &Johnson's Ethicon for $400 million.

In addition to these drugs, Takeda is looking to disposeShire-originated SHP647 that treats inflammatory bowel diseaseafter the European Commission voiced concerns about the overlapwith its own drug called Entyvio.($1 = 109.60 yen)(Reporting by Takashi Umekawa; Editing by Richard Borsuk andMuralikumar Anantharaman)

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