Kyowa Hakko Kogyo Co., Ltd. Three-Month Net Sales up 10.8%; Raises Profit Forecasts

TOKYO--(BUSINESS WIRE)--Kyowa Hakko Kogyo Co., Ltd. (Kyowa Hakko) (TOKYO:4151) today announced its first quarter financial results for the three-month period ended June 30, 2007. Consolidated net sales were 94.9 billion Yen, an increase of 9.2 billion Yen, or 10.8% from the first quarter of the previous fiscal year and ahead of initial plans for the fiscal year, driven mainly by a strong performance from the Pharmaceuticals business. Operating income decreased by 7.3% to 7.5 billion Yen, due to a significant rise in R&D expenses, including a one-time payment for the in-licensing of anti-cancer drug ARQ197 and despite an increase of 4.3 billion Yen in gross profit. Net income was 5.3 billion Yen up 159.0% compared to the first quarter of last fiscal year which recorded extraordinary losses of 3.4 billion Yen.