- While sales and operating income declined by 2.1% and 44.4% year-over-year respectively during the first half of FY3/13, they were basically in line with estimates.
- In the full year FY3/13, R-Tech Ueno estimates call for sales to rise by 9.4% and operating income to decline by 41.9% year-over-year. A full year dividend payment of JPY2,000 per share is anticipated.
- The Bridge Report highlights the fact that R-Tech Ueno boasts of strong core products like AMITIZA® Capsules and a strong financial foundation despite being a new drug discovery venture. Furthermore the commercialization of formulation to treat dry eye is now within sight, and has the potential to contribute to future earnings growth.
R-Tech Ueno, Ltd. is a drug discovery venture company that specializes in research and development and sales of pharmaceutical products in the fields of ophthalmology and dermatology. The Company's business is divided into three main segments of new pharmaceutical research and development, pharmaceutical manufacture and sales, and pharmaceutical development support and consigned manufacturing business segments.
During the first half of FY3/13, sales and operating income declined by 2.1% and 44.4% year-over-year. While the drop in Rescula® Eye Drops sales and higher research and development costs contributed to deterioration in profit, both sales and operating income achieved during the first half were basically in line with the company's estimates.
During FY3/13, earnings estimates call for sales to rise by 9.4% year-over-year to JPY4.4 billion and operating income to decline by 41.9% year-over-year to JPY618 million. These estimates are based on the outlook for a 0.5% year-over-year decline in Rescula® Eye Drops sales to JPY1.9 billion and a 15.0% year-over-year increase in AMITIZA® Capsules sales to JPY2.3 billion. The drop in profits is attributed to product price reductions and increased research and development expenses. A dividend payment of JPY2,000 per share is anticipated.
The Bridge Report highlights the strengths of R-Tech Ueno of a strong financial foundation and established revenue streams from Rescula® Eye Drops and AMITIZA® Capsules. The Report also calls attention to the Company's product development pipeline which includes attractive formulations like the retinitis pigmentosa treatment Ocuseva™. This treatment is the first of its kind in the world to help delay both the degradation in the retinal sensitivity and deterioration in sight and potential annual sales of this product are estimated to be about \2.0 billion.
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About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies.