Daiichi Sankyo predicts increased R&D costs will cut into sales profits

PARSIPPANY, N.J. Daiichi Sankyo will lose a lot of the money received from sales of its drugs by increasing research and development costs.

The company’s sales estimates for fiscal 2007 had been raised by almost 5 percent to $7.68 billion. Daiichi Sankyo raised its 2007 operating income forecast by $26 million, while its sales forecast was raised $341 million.

The licensing agreement with Amgen for the osteoporosis and cancer treatment drug denosumab has been the main reason for the increasing research and development costs. Daiichi Sankyo has already agreed to pay $20 million upfront to Amgen and $150 million in worldwide development costs through 2009.