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

Credit: REUTERS/JULIE STEENHUYSEN

Takeda Pharmaceutical Co forecast on Tuesday it would have an operating loss in the current financial year, as it books costs associated with the multibillion-dollar Shire deal.

193 bln Y op loss forecast this yr vs 227.5 bln profit view of analysts

Shire acquisition made Takeda one of the world's most indebted drugmakers

Adds details of results, background

TOKYO, May 14 (Reuters) - Takeda Pharmaceutical Co 4502.T forecast on Tuesday it would have an operating loss in the current financial year, as it books costs associated with the multibillion-dollar Shire deal.

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

That compares with an average estimate for the current year of 227.5 billion yen profit from 12 analysts, compiled by Refinitiv.

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

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

Takeda agreed last week to sell its dry eye drug Xiidra to Swiss drugmaker Novartis NOVN.S for up to $5.3 billion, as part of a move to dispose of $10 billion worth of non-core assets to cut debt. The company also said it is selling TachoSil, a surgical patch for bleeding control, to Johnson & Johnson's JNJ.N Ethicon for $400 million.

In addition to these drugs, Takeda is looking to dispose Shire-originated SHP647 that treats inflammatory bowel disease after the European Commission voiced concerns about the overlap with its own drug called Entyvio.

($1 = 109.60 yen)

(Reporting by Takashi Umekawa; Editing by Richard Borsuk and Muralikumar Anantharaman)

((takashi.umekawa@thomsonreuters.com; 03-6441-1859; Reuters Messaging: takashi.umekawa.reuters.com@reuters.net))

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